Transitioning to a clean energy economy requires innovative financing solutions that enable state, local, and tribal governments to invest in energy efficiency and renewable energy technologies. The lack of up-front capital is one of the key barriers to clean energy upgrades, so state, local, and tribal governments need to tackle this challenge whether they are looking to pay for improvements in their own buildings or drive action in the residential, commercial, and/or industrial sectors of their communities by offering financing programs. Read more about this challenge in the Financing Overview.
Financing is just one piece of the clean energy puzzle for state, local, and tribal governments to consider. A lack of capital is not the only barrier to investments in clean energy, and financing should not be offered as a solution in isolation. A comprehensive energy plan is affected by and supports program and policy design and implementation and can vary depending on the technology used.
Use these resources to design and implement financing strategies. View Technical Assistance Program webinars dealing with state and local energy program financing.
Learn about several key program elements to consider when designing a clean energy financing program. Also see characteristics of strong programs and financing program pitfalls to avoid.
- Market Segments
- Transaction Points
- Eligible Measures
- Sources of Funds
- Financing Terms
- Credit Enhancement
- Financing Program Pitfalls
Find information on different types of clean energy financing approaches and mechanisms.
- State and Municipal Revolving Loan Funds
- Third-Party Loans
- Energy Savings Performance Contracting
- Property Assessed Clean Energy
- On-Bill Repayment
- Energy Efficient Mortgages
- Power Purchase Agreements
- Federal Housing Authority Power Saver Loans
- Qualified Energy Conservation Bond
Discover ways state and local grantees can use State Energy Program (SEP) and Energy Efficiency and Conservation Block Grant (EECBG) program funds to develop financing programs for residential and commercial building borrowers looking to make clean energy upgrades.