California Incentives/Policies for Renewables & Efficiency Financing Program

California State Loan Program
Eligible Efficiency Technologies: Lighting, Lighting Controls/Sensors, Chillers , Furnaces , Boilers, Heat pumps, Central Air conditioners, Energy Mgmt. Systems/Building Controls, Building Insulation, Motors, Custom/Others pending approval
Eligible Renewable/Other Technologies: CHP/Cogeneration, Other Distributed Generation Technologies
Applicable Sectors: Schools, Local Government, Public Hospitals
Amount: Up to 100% of energy efficiency project costs
Maximum Incentive: $3 million
Terms: 1.00% or 3.00% fixed APR, depending on the project’s ability to meet certain federal guidelines;
Maximum loan term of 15 years.
Program Administrator: California Energy Commission
Program Budget: $45 million total;
$25 million for 1% loans, $20 million for 3% loans
Web Site:
The California Energy Commission (CEC) provides loans to Cities, Counties, public schools, public hospitals, and special districts to finance energy-saving projects. Originally established with $20 million in funding, California more than doubled the loan fund using money made available through the federal American Recovery and Reinvestment Act (ARRA). Public projects funded with money from ARRA must meet certain requirements which may be difficult for certain projects to meet. To add flexibility, the CEC developed two separate loan funds. $25 million in ARRA funds support a loan program with a 1.00% interest rate. Projects unable to meet the ARRA requirements can use the original $20 million in state funds, which support a separate loan program with a 3.00% interest rate.

Interest rates are fixed for the term of the loan. The maximum loan amount is $3 million and there is no minimum loan. Loans must be paid back within 15 years from energy costs savings, or in 2 years for energy audits. Common projects include lighting and equipment upgrades and heating systems, but can also include other energy-saving measures and renewable energy systems.

Application packets are available on the program website above.

Public Programs Office
California Energy Commission
1516 Ninth Street, MS #42
Sacramento, CA 95814-5512
Phone: (916) 654-4104

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