Energy Efficient Schools Initiative - Loans
Administered by Energy Efficient Schools Initiative
Public K-12 school systems in Tennessee can borrow funds through EESI to finance energy efficiency upgrades like HVAC systems, lighting retrofits, building controls, and insulation improvements; the program evaluates whether projected energy savings can cover the loan repayment, and staff assistance is available to help with applications.
EESI projects require architectural and engineering services, presenting opportunities to bid on lighting retrofits, HVAC upgrades, building automation, and retro-commissioning work; all proposed projects must demonstrate energy cost reductions sufficient to repay the loan debt as verified by EESI's Technical Advisory Committee.
EESI provides loans to Tennessee school districts from original state appropriations of $90 million plus interest earnings and Council-secured funding, targeting K-12 facilities with energy efficiency capital projects; the Technical Advisory Committee reviews applications to ensure projected savings justify loan amounts, and staff offer direct assistance and referrals to complementary funding sources when available funds are insufficient.
Program details
- Program ID
- 3801
- Last updated
- 1/2/2026
Eligibility
- Sectors
- schools
- Technologies
- geothermal heat pumps lighting lighting controls/sensors chillers furnaces boilers heat pumps air conditioners programmable thermostats energy mgmt. systems/building controls building insulation motors motor vfds comprehensive measures/whole building custom/others pending approval other ee led lighting building systems hvac load management
Program summary
The Energy Efficient Schools Initiative (EESI) was created in May 2008 to provide loans to Tennessee school systems for capital outlay projects that meet energy efficient design and technology guidelines for school facilities. Existing school facilities in Tennessee are eligible to apply.
State government appropriated the original funding ($90 million) with a onetime transfer from the Lottery for Education Account reserve and Lottery for Education special reserve account for K-12 capital outlay. Additional money to the fund comes from interest earnings and other funds secured by the Energy Efficient Schools Council. The Council is administratively attached to the Department of Education.
Eligible projects include lighting retrofits and controls, HVAC upgrades, building automation systems, retro-commissioning, upgrades to more efficient appliances and certain building envelope improvements. Project required architectural and engineering services are also eligible.
All project applications will be reviewed by EESI’s Technical Advisory Committee, which will verify the proposed energy cost reductions to assure adequate savings to fund the loan debt. Assistance in completing the application will be provided to district personnel from EESI staff upon request. EESI staff can also recommend additional low cost project funding opportunities if the amount of funds they have available is less than what is needed.
Additional loan terms and repayment requirements can be found by clicking here.
Contact & resources
- Contact email
- eesi.admin@tn.gov
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
