Types of Financing Programs

We offer specific links that walk you through several types of programs and the key elements to consider when designing a program. Find information on a specific program type by clicking a link below.

  • State and Municipal Revolving Loan Funds — A state or municipal pool of funds that capitalize a loan fund managed by the state or municipal government; loan repayments recapitalize the fund to allow additional lending on an ongoing basis.

  • Third Party Loans — A loan program administered by a third party (i.e., not the state or local government; usually a financial institution such as a bank), targeted at energy efficiency or renewable energy improvements.

  • Energy Savings Performance Contracting (ESPC)— A financing technique that uses cost savings from reduced energy consumption and operational savings to repay the cost of installing energy conservation and renewable energy measures. The original capital used to finance the needed upgrades is typically secured from municipal leases, bonds, revolving loan programs, or could be from other mechanisms listed within this guide.

  • Property-Assessed Clean Energy (PACE) — Allows clean energy improvements to be repaid via an assessment on the property tax bill; the repayment obligation and savings transfer with ownership.

  • On-Bill Repayment — Clean energy improvements are repaid as part of the utility bill; this can be a personal or business loan, or it can be attached to the meter so that repayment transfers with tenancy.

  • Energy Efficient Mortgages — Reduced interest rates, additional capital for upgrades, or more flexible lending terms can be provided for borrowers who make energy efficiency improvements resulting in significant energy savings, or for borrowers purchasing a certified energy efficient home.

  • Power Purchase Agreement — Enables a company to install and own a renewable energy system on a client's site; the client pays for the energy as it is produced instead of making a large investment upfront.

  • FHA Power Saver (PowerSaver) — The FHA PowerSaver is a new pilot program that will help lenders offer credit-worthy borrowers low-cost loans to make energy-saving improvements to their homes. This program supports loan amounts up to $25,000 by guaranteeing of up to 90% of the loan amount.

  • Qualified Energy Conservation Bond (QECB) — A debt instrument that enables qualified state, tribal and local government issuers to borrow money to fund energy conservation projects.