Financial Incentives

Financial Incentive information for Arizona is provided by the Database of State Incentives for Renewables and Efficiency (DSIRE Arizona).

Last Reviewed: July 2017

The state of California offers the following financial incentives to encourage energy efficiency improvements:

• Bright Schools Program: The Bright Schools Program provides grants of service valued up to $20,000 for technical assistance, such as energy audits, feasibility studies, performance specifications, and professional engineering support services for local educational agencies eligible for Proposition 39 funding. Local educational agencies include public K-12 school district, charter schools, county offices of education, state special schools, and community colleges.
• California Clean Energy Jobs Act (Proposition 39 K-12 Program): This program provides funding for energy efficiency retrofits and clean energy generation at school buildings within a local educational agency to increase energy use savings and energy cost savings.
• Energy Partnership Program: The Energy Partnership Program provides grants of service valued up to $20,000 for technical assistance, such as energy audits, feasibility studies, performance specifications, and professional engineering support services for cities, counties, special districts, public hospitals and care facilities, and public colleges/universities.
• California Capital Access Program: California Pollution Control Financing Authority’s (CPCFA) CalCAP is a loan loss reserve program for small business lending, which may provide up to 100% coverage to participating lenders on losses as a result of certain loan defaults. Eligible projects include energy-efficiency retrofits. The program provides an incentive to participating financial institutions to lend to businesses that would not otherwise qualify for a loan.
• PACE Loss Reserve Program: The PACE Loss Reserve Program mitigates the potential risk to first mortgage lenders associated with residential PACE financing. While CAEATFA itself does not administer PACE financing, the $10 million loss reserve available through the program will make first mortgage lenders whole for any direct losses in a foreclosure or a forced sale that are attributable to a PACE lien covered under the program. As of 2021, over 118,000 PACE loans worth more than $2.7 billion in financing are covered by the PACE Loss Reserve Program. Two claims were received in 2021.
• Energy Conservation Assistance Act (ECAA): A revolving loan program that provides low-interest (1%) loans up to $3 million to cities, counties, special districts, and other public entities for energy efficiency and clean energy generation projects.
• Energy Conservation Assistance Act - Education Subaccount (ECAA-Ed): A revolving loan program that provides interest free loans up to $3 million to local educational agencies (public school districts, charter schools, county offices of education, and special schools) for energy efficiency and clean energy generation projects.
• STE Program (Sales and Use Tax Exclusion for Advanced Transportation and Alternative Energy Manufacturing Program): The Sales Tax Exclusion (STE) Program, which launched in 2010, provides a sales and use tax exclusion for California manufacturers investing in alternative energy source, advanced transportation, recycling, and advanced manufacturing projects. Eligible manufacturers may submit applications for up to $10 million in sales tax exclusions (and may submit application for up to $20 million in sales tax exclusion to a large project pool at the first deadline of the calendar year) for facility improvements and equipment. In 2021, a list of Emerging Strategic Industries was developed to support particularly innovative industries, technologies, and products; the list currently focuses on lithium-related products.
• GoGreen Financing Program (formerly CHEEF): Statewide energy efficiency financing platform to facilitate private capital lending for energy efficiency improvements within the single-family, affordable multifamily, and small business sectors. Known publicly as the GoGreen Financing Programs, the CHEEF incents private capital providers to offer energy efficiency financing with lower rates, longer payback terms, and broader underwriting criteria by offering a credit enhancement in the form of a loan loss reserve. The GoGreen Home Energy Financing Program launched in July 2016, and as of April 30, 2022, has enrolled over 2,000 loans totaling more than $33 million working with 8 of California's credit unions. The GoGreen Business Energy Financing Program launched in 2019 and has financed 13 projects worth $1.8 million as of May 18, 2022. On-bill repayment functionality, which allows the borrower to repay their financing as part of their utility bill, became available for GoGreen Business in 2022. The GoGreen Affordable Multifamily Financing program launched in 2019 and has yet to enroll its first project.
• Farm Worker and Multi-Family Low-Income Weatherization Programs: Reduces GHGs by installing energy efficiency and solar photovoltaics for low-income single-family households, and providing technical assistance and incentives for energy efficiency upgrades and renewables for multi-family properties. The program is comprised of four components: the Single-Family Energy Efficiency and Solar Photovoltaics (PV) Program, which includes a new program component focused on farmworker housing; the Single-Family Solar PV Program; the Multi-Family Energy Efficiency and Renewables program; and a Community Solar Pilot Program providing the benefits of renewable energy to additional households.
• Food Production Investment Program: The Food Production Investment Program (FPIP) provides grants to California’s food processing industry to reduce GHG emissions associated with energy use. The goals of the program are to accelerate the adoption of advanced energy efficiency and renewable energy technologies at California food processing plants, demonstrate their reliability and effectiveness, and help California food processors work towards a low-carbon future. Program funding is divided between two tiers. Tier I funds commercially available, drop-in energy efficiency technologies that provide GHG emission reductions compared to current best practices or industry standards. Tier II funds emerging energy efficiency and renewable energy technologies that are not widely used in California but have been proven elsewhere to be capable of reducing GHG emissions. All projects funded by FPIP must perform measurement and verification via actual on-site measurements to quantify energy savings and GHG emission reductions.

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE California). In addition to these state-funded incentives, California has enabled commercial and residential Property Assessed Clean Energy (PACE) financing and has multiple active programs. For additional information on PACE, visit PACENation.

Last Reviewed: June 2022

The state of Connecticut offers the following financial incentives to encourage energy efficiency improvements:

• Multifamily Credit Enhancement Fund: This program through the Connecticut Green Bank assists people secure funding for energy projects, providing credit enhancements to reduce lender risk if necessary.
• Multifamily Catalyst Fund: This flexible $2.5 million fund is available for gap financing for energy and health and safety remediation to support affordable multifamily projects that need extra credit enhancement support and aren’t served by other CGB programs. This program is administered in partnership with the Housing Development Fund, a local CDFI, and part of a $5 million program related investment from MacArthur Foundation is used to support the program. Financing can be secured or unsecured subordinate debt.
• PosiGen Solar Lease and Energy Efficiency Energy Savings Agreement: In 2015, the Connecticut Green Bank launched this program in partnership with PosiGen Solar Solutions to support low to moderate income residents to install solar and energy efficiency measures using an innovative solar lease and energy savings agreement financing model. The offer is open to households regardless of income or credit, utilizing alternative underwriting approaches that examine factors such as bill payment history and bad debt and bank databases.
• Low Income Multifamily Energy (LIME) Loan: An unsecured construction and term loan to finance implementation of energy efficiency improvements, solar and other renewable systems, and health & safety measures for multifamily residential properties. Up to 25% of loan proceeds may be used for non-energy efficiency improvements (structural, health/safety, etc.), provided there are sufficient savings to carry the costs. This program is run by Capital for Change, a community development financial institution serving statewide.
• Multifamily Pre-Development Energy Loan Program: A simple pre-development loan that funds analysis, design and engineering of energy improvements for multifamily housing. This loan program is designed to support property owners in identifying high-quality technical assistance providers and to fund the work needed to scope and secure financing for deeper, cost-effective energy upgrades. Loans are unsecured with interest rates of 0% to 2.99% with a maximum term of two years.
• Energy Conservation Loan Program
• Multifamily Energy Conservation Loan Program
• Smart E-loan
• Commercial and Industrial Property Assessed Clean Energy (C-PACE): The C-PACE program was introduced in January of 2013 and provides 100% upfront financing for energy upgrades to commercial, industrial, non-profit, and multifamily buildings. Property owners then repay the loan as a benefit assessment charge on their property tax bill. Because the payments can be spread over a period of up to 25 years, at low interest rates (i.e., 4.50- 6.25%) owners save on energy costs immediately and for years to come. The financed improvements increase the building’s value, while preserving the building owner’s capital and credit lines for core investments.
• CT Weatherization Barrier Remediation Program
• Business Energy Advantage Program
• EE Retrofit Program for Affordable Housing
• Renewable Thermal Technology Pilot
• RGGI to EE measures: RGGI funds directed to EE measures for low-income folks. These funds are newly direct to EE.
• Lead by Example bond funds

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE Connecticut). In addition to these state-funded incentives, Connecticut has enabled commercial Property Assessed Clean Energy (PACE) financing and has one active program. For additional information on PACE, visit PACENation.

Last Reviewed: August 2022

The District of Columbia offers the following financial incentives to encourage energy efficiency improvements:

• Green Light Grant Program: The program provides funding to research projects related to green buildings, including efficiency-related measures such as urban heat islands and zero-energy homes. The program provides funding to nonprofit organizations, government agencies or universities/higher educational institutions in order to meet the ambitious goals related to green buildings set out in the Mayor's Sustainable DC Plan.

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE District of Columbia). In addition to these state-funded incentives, DC has enabled commercial Property Assessed Clean Energy (PACE) financing and has one active program. For additional information on PACE, visit PACENation.

Last Reviewed: June 2022

Currently, there are no solely state-administered financial incentive programs. Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE Georgia). The state does enable Property Assessed Clean Energy Financing (PACE) and has one active program. For additional information on PACE, visit PACENation.

Last Reviewed: August 2022

The state of Idaho offers the following financial incentives to encourage energy efficiency improvements:

• Low-Interest Energy Loan Program
• Income Tax Deduction for Energy Efficiency Upgrades
• Government Leading by Example: The State Energy Office assists rural cities and counties in implementing cost-effective energy efficient measures, energy conservation and renewable energy projects on existing government buildings.

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE Idaho).

Last Reviewed: June 2022

The state of Indiana offers the following financial incentives to encourage energy efficiency improvements:

• Green Project Reserve Revolving Loan Fund: This program offers low-interest loans to communities and businesses to improve infrastructure, including energy efficiency improvements.
• Guaranteed Energy Savings Contract: A financing program leading to an agreement between a qualified provider and a building owner to reduce the energy and operating costs of a building or a group of buildings by a specified amount. Schools, libraries, municipal water or wastewater utilities, or governing bodies can participate.

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE Indiana).

Last Reviewed: June 2022

Currently, there are no solely state-administered financial incentive programs. Financial Incentive information for Kansas is provided by the Database of State Incentives for Renewables and Efficiency (DSIRE Kansas).

Last Reviewed: July 2017

Financial incentive information for Louisiana is provided by the Database of State Incentives for Renewables and Efficiency (DSIRE Louisiana). Information about additional incentives not present on DSIRE is listed here.

Energy Fund Loan Program: Provides low interest loans for energy efficiency projects at schools and other public facilities.

Last Reviewed: July 2018

The state of Maryland offers the following financial incentives to encourage energy efficiency improvements:

• Smart Energy Communities Grant Program: Local governments in Maryland may choose to adopt two of three policies related to energy efficiency, renewable energy, and transportation petroleum reduction, and become a Smart Energy Community. Once the policies are adopted, the local government becomes eligible for grant funding ranging from $35,000 to $625,000. Technical assistance to implement the policies will also be provided.
• Commercial, Industrial, and Agriculture Grant Program: Provides grants to commercial, industrial, farms, and other agricultural entities for the implementation of energy efficiency improvement projects to their facilities.
• MARBIDCO Rural Business Energy Efficiency Improvement Loan Fund
• Be SMART Home and Multifamily Efficiency Loan Programs
• Jane E. Lawton Conservation Loan Program: The Lawton program makes low-interest energy efficiency loans available for businesses, nonprofits, state agencies, and local governments.
• Data Center Energy Efficiency Grant Program: The DCEEG program provides grants on a first-come, first-served basis to encourage innovative and cost-effective energy efficiency technologies in Maryland data centers. The DCEEG program is open to all commercial, industrial, state/local government, or non-profit data centers in Maryland with an overall data facility floor size of 1,000 square feet or greater.
• Combined Heat and Power Grant Program: This first-come, first-served program provides Maryland organizations with capital incentives to install qualified CHP systems at their facilities to enhance operational efficiency, cost reductions, sustainability, and resilience against power disruptions. Awards are available to a wide array of industries and building types.
• Low-to-Moderate Income Energy Efficiency Grant Program
• Energy-Water Infrastructure Program
• Clean Energy Grant Program: Provides rebate-type grants for new ground source heat pumps.
• Energy-Efficient Homes Construction Loan Program: Provides loans to rehabilitated or new construction projects that achieve low energy use (Home Energy Rating
• System score of 50 or less) or net zero upon completion.
• Resilient Maryland
• Streetlight and Outdoor Lighting Efficiency Pilot Program: The FY22 Streetlight and Outdoor Lighting Efficiency (SOLE) pilot program will make grants available to eligible entities to defray the cost of replacing outdated, less efficient pole-mounted fixtures used for street lighting, parking lot illumination, parks, athletic fields and other outdoor lighting systems, along with implementing certain lighting controls.
• Decarbonizing Public Schools Pilot Program: Help Local Education Agencies (LEAs) develop capacity and advance strategies for promoting clean and efficient energy use within their portfolio of current and future K-12 schools and support facilities. Area of Interest (AOI) 1 will defray the costs of energy data management and use of ENERGY STAR Portfolio Manager®(Portfolio Manager). AOI 2 will help cover the cost of incorporating net zero energy (NZE) design principles into facility development portfolios and long-term capital plans.

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE Maryland). In addition to these state-funded incentives, Maryland has enabled commercial Property Assessed Clean Energy (PACE) financing and has two active programs. For additional information on PACE, visit PACENation.

Last Reviewed: June 2022

The state of Michigan offers the following financial incentives to encourage energy efficiency improvements:

• Michigan Energy Codes Compliance Program: Provides funding for creation of guidance documents that will improve energy code compliance rates in Michigan for both residential and commercial customers.
• Building Operator Training Program: Provides funding for training of public and non-profit building operators to allow these operators to most efficiently operate the buildings they manage.
• Event Sponsorship Funding Opportunity: Provides funding assistance for workshops, conferences, or other events that increase awareness of energy efficiency and/or renewable energy technologies, applications, opportunities, and best practices in the state of Michigan.
• Community Energy Management Program: Funding program to assist community organizations improve the operation of their buildings. This can include energy audits, implementation efforts, and renewable energy installation.
• AgriEnergy and Sustainable Farming: Funding program to help agribusinesses and rural small businesses to implement energy efficiency work or renewable energy installation for onsite use.
• Small Manufacturer's Energy Waste Reduction Pilot Program: Funding program for manufacturers to implement process improvements that will improve the efficiency of their operation.
• Michigan 2030 Districts Program: Support for the three 2030 districts in Michigan (Grand Rapids, Detroit, Ann Arbor) has been done through sponsorships of the organizations responsible for acheiveing the goals for the 2030 district.
• Water Leak Pilot Program: Funding program to inform, recruit, enroll, then complete water efficiency work in two communities in Michigan. The work was required to be completed on supply side piping/fixtures that would reduce the water and energy use in these homes.
• Water Energy Nexus Program: Research project to quantify the energy losses associated with service line leaks in municipal water distribution systems. These energy losses are in the form of pumping and treatment energy from the extraction, treatment, and delivery of water to the service line leaks.
• Charge Up Michigan: Funding to support placement of EV chargers across Michigan. Charger locations should align with the EV Charger Placement Optimization Plan created by a grant through Michigan's State Energy Office. Ideally, costs would be split equally between EGLE, the electric utility, and the site host.
• Optimized EV Charger Placement Plan: Research to determine the optimized locations of EV chargers in Michigan to allow for travel throughout the state of Michigan with an EV. This has been done in several stages including, highways, tourism analysis, select cities, and the Lake Michigan circuit.

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE Michigan). In addition to these state-funded incentives, Michigan has enabled commercial Property Assessed Clean Energy (PACE) financing and has one active program. For additional information on PACE, visit PACENation.

Last Reviewed: August 2022

Financial incentive information for Mississippi is provided by the Database of State Incentives for Renewables and Efficiency (DSIRE Mississippi).

Last Reviewed: July 2017

The state of Montana offers the following financial incentives to encourage energy efficiency improvements:

• Deduction for Energy-Conserving Investment
• Energy Conservation Installation Credit: For the 2021 tax year, the Montana state credit remains at 25% of eligible investments, up to $500 per taxpayer. The Montana credit can be claimed each year that eligible improvements are completed. This credit ends in 2021.
• Alternative Energy Revolving Loan Program: AERLP provides low-interest loans to individuals, small businesses, nonprofit organizations, and government entities in order to increase investments in alternative energy systems and energy conservation measures in Montana.

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE Montana). In addition to these state-funded incentives, Montana has enabled commercial Property Assessed Clean Energy (PACE) financing and has one active program. For additional information on PACE, visit PACENation.

Last Reviewed: June 2022

The state of Nevada offers the following financial incentives to encourage energy efficiency improvements:

• Home Energy Retrofit Opportunities for Seniors (HEROS): The joint-Nevada Governor's Office of Energy (GOE) and Nevada Division of Housing (NHD) program targets seniors 60 years and older and persons with disabilities for residential energy assessments and upgrades. Funding from GOE augments the current weatherization assistance program administered by the NHD and is provided to the homeowner free of charge. GEO administrators the program through a network of non-profit service provider agencies throughout Nevada. An energy assessment is conducted at the participating senior's home in order to develop a scope of work. Each home may receive up to $6,000 in energy saving measures.
• Direct Energy Assistance Loan (DEAL) Program: The Nevada State Legislature approved the Governor’s Office of Energy’s DEAL Program on May 30, 2015. This newly created program provides $1,500,000 in zero-interest loans annually to Nevada state employees to receive energy assessments and upgrades and creates a mechanism for the employee to repay the energy efficient loan through a deduction on their paycheck. Funds generated for these grants originate from the Renewable Energy Fund and distributed to the Governor’s Office of Energy. This fund was created during the 2009 Nevada Legislative session to fund energy projects and programs that offset the cost or use of electricity to retail customers of a public utility in Nevada.
• Property Tax Abatement for Green Buildings
• Performance Contracting Audit Assistance Program (PCAAP)

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE Nevada). In addition to these state-funded incentives, Nevada has enabled commercial Property Assessed Clean Energy (PACE) financing and has one active program. For additional information on PACE, visit PACENation.

Last Reviewed: June 2022

Currently, there are no solely state-administered financial incentive programs. Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE New Jersey). The state does enable Property Assessed Clean Energy Financing (PACE) but does not yet have any active programs. For additional information on PACE, visit PACENation.

Last Reviewed: August 2022

The state of New York offers the following financial incentives to encourage energy efficiency improvements:

• EmPower NY
• 76 West: A competition focused on growing entrepreneurs and attracting resources to build clean energy businesses and jobs in New York State's Southern Tier region. The competition offers $20 million in prize money and support services, including a $1 million top prize.
• Green Jobs Green NY: The Green Jobs - Green New York (GJGNY) Program provides residential, small businesses, not-for-profits, and multi-family building owners with access to energy assessments, installation services, low-cost financing (currently for residential customers only), and “green jobs” workforce training. For residential customers, NYSERDA's Home Performance with ENERGY STAR Program offers loans offer up to $13,000 per household, up to $25,000 if the project meets higher cost-effectiveness standards and have repayment periods of 5, 10, or 15 years. Programs for small businesses, not-for-profits and multifamily building owners (coming soon) can finance energy efficiency upgrades with low interest payments conveniently built into one energy bill and offset the payment with the savings earned over the year.
• Cleaner Greener Communities (CGC): This program offers grants for communities to adopt regional growth strategies that are environmentally sustainable by providing resources for regional sustainability plans, implementation of smart growth and other sustainability activities that will reduce GHG emissions, improve energy efficiency, support renewable energy, support low carbon transportation, and deploy other carbon abatement technologies.
• Low-Rise Residential New Construction Program
• Clean Energy Communities: Local governments in New York State can use the Clean Energy Communities program to implement clean energy actions, save energy costs, create jobs, and improve the environment. In addition to providing tools, resources, and technical assistance, the program recognizes and rewards leadership for the completion of clean energy projects.
• REV Campus Challenge: The REV Campus Challenge promotes clean energy efforts by recognizing and supporting colleges and universities in New York State that implement clean energy projects and principles on campus, in the classroom, and in surrounding communities. The REV Campus Challenge recognizes colleges and universities that strive to meet their financial, environmental, academic, and community goals through clean energy solutions. REV Campus Challenge members are invited to participate in the Roadmaps Technical Assistance program, which supports colleges and universities in kick-starting their clean energy efforts. Launched in December 2016, the Roadmaps program provides funding for REV Campus Challenge members to work with energy consultants to better understand and pursue clean energy opportunities on their campuses and develop action plans for the future.
• Charge NY: Includes three main strategies to promote plug-in electric vehicle (PEV) adoption: offering a rebate program for zero-emission vehicles to help accelerate purchases of plug-in electric vehicles (PEVs); engaging stakeholders to engender greater support for PEVs and educate potential PEV and PEV infrastructure buyers; and initiating a program to bring down the price of installing PEV charging stations in the state.
• Drive Clean Rebates
• DEC Municipal Zero-Emission (ZEV) & ZEV Infrastructure Rebate Program
• Energy Conservation Improvements Property Tax Exemption
• Home Performance with Energy Star
• New York Green Bank: The $1 billion NY Green Bank (NYGB) acts as a supplement to other ratepayer-funded programs by leveraging private investment for energy efficiency and clean energy. NYGB alleviates barriers and gaps in clean energy financing by providing products that make it possible for lenders to close greater numbers of credit-worthy deals, and it fosters scalable, replicable clean energy projects and financial solutions by promoting standardizations of contracts, installation and servicing practices, and credit underwriting methods. NYGB's current active energy efficiency portfolio includes numerous proposed transactions in various clean energy sectors. For example, the NYGB has recently retrofitted Northpoint School District, installed a CHP system at Hebrew Home for the Aged (Riverdale, NY), retrofitted numerous NYC Housing Authority developments, and funded an energy software company called Sealed, Inc. that finances residential efficiency improvements. In June 2017 Governor Cuomo announced that NYGB had turned a $2.7 million profit.
• Local Option - Municipal Sustainable Energy Programs
• New York Truck Voucher Incentive Program

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE New York). In addition to these state-funded incentives, New York has enabled commercial Property Assessed Clean Energy (PACE) financing and has two active programs. For additional information on PACE, visit PACENation.

Last Reviewed: August 2022

The state of North Dakota offers the following financial incentives to encourage energy efficiency improvements:

• Energy Conservation Grant Program: The grant program is administered by the Division of Community Services and assists North Dakota political subdivisions in making energy efficiency improvements to public buildings. Awards range from $10,000 to $100,000 and a 50% cash match is required.
• State Energy Program (SEP): The State Energy Program (SEP) promotes energy efficiency and conservation and is supported by financial and technical assistance through the U.S. Department of Energy. Community Services receives an annual allocation to implement the SEP program. Annual allocations vary but usually fall between $350,000 and $380,000. Community Services makes SEP funds available to applicants for a variety of energy efficiency related activities. These include energy education, installation of energy efficient measures (building audits, lighting retrofits, HVAC upgrades, etc), transportation initiatives (alternative fuel vehicles and fueling systems), and renewable energy technologies (small scale wind turbines and solar technologies).

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE North Dakota).

Last Updated: June 2022

Oklahoma has enabled commercial Property Assessed Clean Energy (PACE) financing and has one active program. For additional information on PACE, visit PACENation. Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE Oklahoma).

Last Reviewed: June 2022

The state of Pennsylvania offers the following financial incentives to encourage energy efficiency improvements:

• Alternative and Clean Energy Program: The Alternative and Clean Energy Program provides financial assistance in the form of grant and loan funds that will be used by eligible applicants for the utilization, development, and construction of alternative and clean energy projects, infrastructure associated with compressed natural gas and liquefied natural gas fueling stations, and energy efficiency and energy conservation projects in the state.
• Pennsylvania Sustainable Energy Finance Program (PennSEF): Administered by the Pennsylvania Treasury Department in partnership with the Foundation for Renewable Energy and Environment, this program provides technical and legal assistance, as well as low-cost capital, for energy improvement projects by municipalities, universities, schools, and hospitals. Participants will also receive free energy audits from ESCOs. The program receives financial support from the West Penn Power Sustainable Energy Fund.
• Alternative Fuels Incentive Grant (AFIG): Administered by the Pennsylvania Department of Environmental Protection, this program offers funding for clean, alternative fuel transportation projects in Pennsylvania's energy sector.
• High Performance Building Incentives Program: The High Performance Building Program provides financial assistance in the forms of grants and loan funds to underwrite the cost premiums associated with the design and construction or major renovation of high performance buildings in the state.
• Small Business Advantage Grant Program: The Small Business Advantage Grant provides 50% matching grants, up to a maximum of $5,000 to enable Pennsylvania small businesses to purchase energy efficient or pollution prevention equipment, or adopt waste reduction processes.
• Green Energy Loan Fund: The Pennsylvania Green Energy Loan Fund (GELF) provides financing for energy efficiency retrofits and the installation of energy conservation measures and high-performance energy systems in buildings throughout Pennsylvania. GELF is managed by The Reinvestment Fund and is supported by the Pennsylvania Department of Environmental Protection and the U.S. Department of Energy. Borrowers eligible for a GELF loan include for-profit businesses, nonprofit organizations, local governments, multifamily residential, and industrial companies. Homeowner are not eligible for a GELF loan. The type of financing provided includes construction loans, term loans and lease financing. Loans will range between approximately $100,000 and $2,500,000.
• Small Business Pollution Prevention Assistance Account Loan Program: The Small Business Pollution Prevention Assistance Account (PPAA) provides low-interest, fixed-rate loans to small businesses undertaking projects which reduce waste, pollution or energy use. This funding can help small businesses comply with environmental regulations while benefiting from the economic benefits of preventing pollution or waste, or becoming energy efficient. The program is a collaboration between the Department of Environmental Protection (DEP) and the Department of Community and Economic Development (DCED).
• Pennsylvania Energy Development Authority (PEDA): An independent public financing authority that was created in 1982 by the Pennsylvania Energy Development Authority and Emergency Powers Act and that was revitalized through an April 8, 2004, Executive Order. The authority's mission is to finance clean, advanced energy projects in Pennsylvania, including solar energy, wind, low-impact hydropower, geothermal, biomass, landfill gas, fuel cells, integrated gasification combined cycle, waste coal, coal-mine methane, and demand management projects. The authority presently can award grants, loans, and loan guarantees. Tax-exempt and taxable bond financing for clean, advanced energy projects also are available through the Pennsylvania Economic Development Financing Authority (PEDFA). PEDFA did not allocate any funds in the past year.

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE Pennsylvania). In addition to these state-funded incentives, Pennsylvania has enabled commercial Property Assessed Clean Energy (PACE) financing and has two active programs. For additional information on PACE, visit PACENation.

Last Reviewed: June 2022

Financial incentive information for South Carolina is provided by the Database of State Incentives for Renewables and Efficiency (DSIRE South Carolina).

Last Reviewed: July 2017

The state of Tennessee offers the following financial incentives to encourage energy efficiency improvements:

• EmPower Tennessee Initiative: Through this initiative the state is working to reduce energy costs and consumption across state-owned and managed facilities by measuring and controlling energy use, investing in increasing energy efficiency and renewable power generation, and creating an operational environment of excellence. Of the state's approved $43 million budget for FY2016, over $37 million is dedicated to energy efficiency projects. The remainder will go to the procurement and implementation of a utility data management system and related energy management infrastructure.
• Energy Efficient Schools Initiative - grants and loans: The Energy Efficient Schools Initiative (EESI) was created in 2008 with a $90 million, one-time distribution from excess lottery funds. The program was designed to make grants and loans from the original balance. Loan funds can be returned to the Education Lottery when the program ends. Funds are currently fueling energy savings upgrades in K-12 schools statewide. EESI is one of the only non-scholarship uses of Education Lottery Funds ever approved. None of EESI’s loans have ended in default. All administrative costs associated with the three-person EESI team are covered by low-interest loans and treasury fund balances.
• Pathway Energy Efficiency and Renewable Energy Loan Program: Pathway Lending's Energy Efficiency and Renewable Energy Loan Program (EELP), a low-interest revolving loan fund, launched in 2010 to assist Tennessee for-profit and not-for-profit commercial and industrial businesses in implementing energy efficiency and renewable energy improvements. Pathway Lending, a US Treasury certified community development financial institution, oversees the $33 million revolving loan fund. Eligible projects under EELP include, but are not limited to: energy efficient equipment upgrades; lighting; building envelope retrofits; cool roofs; renewable energy installations; and co-generation.
• Volkswagen Diesel Settlement Environmental Mitigation Trust: School Bus Replacement Grant Program, Transit and Shuttle Bus Grant Program, Medium and Large Trucks Grant Program, Light Duty Electric Vehicle Supply Equipment
• Home Uplift: In 2021, TDEC OEP provided grants totaling $3 million to local power companies (EPB, KUB, MLGW, & NES) to extend the reach of their Home Uplift Programs. This funding is being used to cover the costs of energy efficiency and weatherization measures for limited income homeowners that are customers in their respective service areas.

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE Tennessee). In addition to these state-funded incentives, Tennessee has enabled commercial Property Assessed Clean Energy (PACE) financing but does not yet have any active programs. For additional information on PACE, visit PACENation.

Last Reviewed: August 2022

The state of Utah offers the following financial incentives to encourage energy efficiency improvements:

• U-Save Energy Efficiency Fund: Loans are provided for the retrofit of existing buildings as well as energy efficiency upgrades to new buildings. However, loans can not be used for new buildings to meet the Utah energy code. Loans for new construction can only be used for measures which surpass the prescriptive requirements of the Utah energy code and result in a completed building which exceeds the performance standards of the energy code for its building type by 10%. Renewable energy systems are also eligible for loan funds.
• State Building Energy Efficiency Fund: The State Facility Energy Efficiency Fund (SFEEF) was established in fiscal year 2008 to provide the State Building Energy Efficiency Program with a revolving loan fund from which agencies and institutions can borrow to complete energy efficiency improvement projects. Repayment of the loan is achieved by capturing cost savings from reduced energy use and demand and by capturing utility incentives. Borrowed funds are paid back into the SFEEF so that it can be lent out again.

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE Utah). In addition to these state-funded incentives, Utah has enabled commercial Property Assessed Clean Energy (PACE) financing and has one active program. For additional information on PACE, visit PACENation.

Last Reviewed: June 2022

The state of Virginia offers the following financial incentives to encourage energy efficiency improvements:

• Commonwealth Energy Fund (CEF): This Center for Innovative Technology program provides loans for high-growth potential, early stage Virginia companies capable of driving job creation, reducing energy consumption, increasing energy generation from renewable resources, and reducing greenhouse gas emissions.
• Income Tax Deduction for Energy-Efficient Products: This program allows an income tax deduction for 20% of the sales tax paid on certain energy efficient equipment or appliances, up to $500 per year. If filing a joint return, you may deduct up to $1,000.

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE Virginia). In addition to these state-funded incentives, Virginia has enabled commercial Property Assessed Clean Energy (PACE) financing and has two active programs. For additional information on PACE, visit PACENation.

Last Reviewed: August 2022

The state of West Virginia offers the following financial incentives to encourage energy efficiency improvements:

• Partnership between WV OOE and WVU School of Engineering
• WV Energy Efficency Impact Grant Program: Provides $3000 grants to WV small businesses for energy efficency and renewable upgrades.
• Energy Efficient West Virginia

Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE West Virginia). The state has not yet enabled Property Assessed Clean Energy (PACE) financing. For additional information on PACE, visit PACENation.

Last Reviewed: August 2022