Small-Scale Energy Loan Program
Administered by Oregon Department of Energy
The Oregon Small-Scale Energy Loan Program (SELP) is currently not accepting new loan applications as of July 2025 due to program insolvency. Historically, the program offered low-interest loans ranging from $20,000 to $20 million for residential energy efficiency and renewable energy projects, with loan fees of 1-2% of the amount requested and terms generally matching the financed equipment's life.
SELP is not currently accepting new applications, so contractors cannot enroll customers in this program at this time. When operational, the program served a broad range of project types including solar, wind, geothermal, heat pumps, and comprehensive efficiency measures for residential, commercial, and institutional customers.
SELP, administered by the Oregon Department of Energy since 1979, financed by voter-approved bond sales, remains insolvent due to high-risk loan defaults between 2007-2012 and no new originations since 2015. The 2021 Legislature appropriated $3.5 million in General Fund support through the 2021-23 biennium for bond debt service; the program is not currently processing applications and will require continued state funding to service existing bond obligations.
Program details
- Program ID
- 236
- Last updated
- 7/29/2025
Eligibility
- Sectors
- commercial industrial local government nonprofit residential schools state government federal government tribal government
- Technologies
- solar - passive solar water heat solar space heat geothermal electric solar thermal process heat solar photovoltaics wind (all) biomass geothermal heat pumps combined heat & power wind (small) hydroelectric (small) geothermal direct-use water heaters lighting chillers boilers heat pumps air conditioners heat recovery programmable thermostats energy mgmt. systems/building controls caulking/weather-stripping duct/air sealing building insulation windows motors comprehensive measures/whole building custom/others pending approval other ee
Program summary
Note: This program is currently insolvent and has been on hiatus since 2015. The insolvency is a result of the default of high-risk loans that occurred between 2007 and 2012 and the lack of new loan origination since 2015. The program will require General Fund support to meet bond debt service payments in 2022 and 2023. The 2021 Legislature in SB 5506 (2021) appropriated $3.5 million General Fund to ODOE to pay SELP bond debt service through the 2021-23 biennium. As of July 2025, SELP is not currently accepting new loan applications.
The Oregon Small-Scale Energy Loan Program (SELP) was created in 1979 after voters approved a constitutional amendment authorizing the sale of bonds to finance small-scale, local energy projects and is administered by the Oregon Department of Energy. The sale of bonds is made on a periodic basis and, occasionally, may be done to accommodate a particularly large loan request.
The program offers low-interest loans for projects that:
- Conserves energy;
- Produce energy from renewable resources such as water, wind, geothermal, solar, biomass, waste materials or waste heat;
- Use recycled materials to create products; or
- Use alternative fuels.
Loans are available to individuals, businesses, schools, cities, counties, special districts, state and federal agencies, public corporations, cooperatives, tribes, and non-profits. School districts receive special rates.
Though there is no legal maximum loan, the size of loans generally ranges from $20,000 to $20 million. Terms vary, but are generally set to match the term of the bonds that funded the loans. Loan terms may not exceed project life. Loan fees are set based on the size of the loan and range from 1 - 2% of the loan amount requested.
Contact & resources
- Contact email
- david.p.stevens@state.or.us
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
