LoanSTAR Revolving Loan Program
Administered by Comptroller of Public Accounts State Energy Conservation Office (SECO)
LoanSTAR provides low-interest revolving loans to state agencies, public schools, colleges, universities, local governments, and nonprofit hospitals to finance energy efficiency and renewable energy retrofits—from solar and geothermal systems to lighting and controls—with repayment coming from the energy cost savings the projects generate. Apply during the announced funding windows (typically April and October) by submitting an application with an engineering or utility assessment; SECO will review and score your project, and if selected, you'll have 120 days to complete a detailed Energy Assessment Report before loan funds are reserved. As of September 2025, the program has funded over 450 loans totaling more than $600 million, achieving approximately $900 million in cumulative energy savings for Texas taxpayers.
LoanSTAR projects span a broad range of eligible technologies including solar photovoltaics, heat pumps, geothermal systems, building controls, insulation, and custom energy measures, creating opportunities to serve institutional clients across the state. You'll work with borrowers and SECO throughout the process—SECO conducts design review and specification review, and monitors construction at 50% and 100% completion to ensure projects meet LoanSTAR Technical Guidelines; loan repayment does not begin until construction is fully complete and certified to comply with program standards.
LoanSTAR operates as a revolving loan fund administered by SECO (State Energy Conservation Office), publishing Notice of Loan Fund Availability twice yearly (typically April and October) in the Texas Register and on the Comptroller's website. Applications are scored by a review committee weighted on application completeness, project location, and public access to energy savings data; selected applicants sign an MOU and have 120 days to submit an Energy Assessment or Utility Assessment Report, after which SECO reserves funding and oversees design and construction compliance. The program has funded 450+ loans totaling $600+ million as of September 2025, generating approximately $900 million in cumulative energy savings; borrowers repay only after 100% construction completion and design certification.
Program details
- Program ID
- 1134
- Effective
- 1/26/1989
- Last updated
- 6/6/2025
Eligibility
- Sectors
- local government nonprofit schools state government
- Technologies
- solar - passive solar water heat solar space heat solar photovoltaics wind (all) geothermal heat pumps wind (small) lighting lighting controls/sensors chillers furnaces boilers heat pumps air conditioners heat recovery programmable thermostats energy mgmt. systems/building controls building insulation motors motor vfds custom/others pending approval other ee
Program summary
The Texas LoanSTAR (Saving Taxes and Resources) low-interest revolving loan program finances energy-related cost reduction retrofits for state, public school, college, university, and non-profit hospital facilities. Borrowers repay loans through the stream of cost savings realized from their energy cost-reduction projects. The LoanSTAR Program Administrator should be contacted for information on current loan interest rates.
As of September 1, 2023, LoanSTAR has funded over 337 loans totaling over $600 million.
Eligible Projects
Guidelines for project eligibility, fund availability and project funding and repayment are set forth in the administrative rules and the technical guidelines.
Process
Each April and October, the State Energy Conservation Office (SECO) publishes a Notice of Loan Fund Availability and request for applications of LoanSTAR loans. The notice is published in the Texas Register, on the Comptroller’s website, and on the SECO Funding & Incentives webpage. Applications are scored by a review committee, with the highest scoring applicants receiving funding commitments first. Scoring is based largely on the following considerations.
- Information provided in the application including the application and one of the following: Engineering Assessment Report / Utility Assessment Report, Preliminary Energy Assessment, or Project Assessment Commitment;
- Location of proposed project; and
- Public access to the projects’ energy savings information.
Selected institutions will be asked to sign a Memorandum of Understanding (MOU) agreeing to complete and submit an Energy Assessment Report (EAR) or a Utility Assessment Report (UAR) within 120 days. With an executed MOU, SECO reserves funding for the institution.
SECO performs design review, design specification review, and on-site construction monitoring at 50% and 100% completion of each project phase. Repayment of the loans does not begin until after construction is 100% completed and it has been determined that the project was designed and constructed in accordance with the LoanSTAR Technical Guidelines.
More information, including project applications and a detailed program guidebook, are available on the program website above.
Contact & resources
- Contact email
- Eddy.trevino@cpa.state.tx.us
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
