Energy Efficiency Financing for Public Sector Projects
Administered by California Energy Commission
This program is not available to homeowners or residential properties—it is exclusively for public sector entities like schools, cities, counties, and public hospitals in California seeking low-interest or zero-interest loans for energy efficiency and renewable energy projects. If you represent a public institution, you can finance projects like lighting, HVAC, building insulation, solar, or EV charging infrastructure with loans up to $3 million, where loan terms are structured so energy savings cover the payments.
You can serve public sector clients in California accessing zero-interest loans (schools and educational entities) or one-percent loans (cities, counties, colleges, public hospitals, and tribes) for energy efficiency and distributed generation projects. Note that as of November 28, 2025, the program is not accepting new applications while the California Energy Commission updates its Program Opportunity Notices, though it continues to award loans already on the waitlist.
ECAA is a California Energy Commission loan program offering zero-percent financing to public schools (districts, charters, county offices of education, state special schools) and one-percent financing to municipalities, public colleges/universities, public healthcare institutions, and California Native American Tribes for energy and decarbonization projects. Maximum loan per application is $3 million with no minimum; loan terms are individually structured so annual energy cost savings cover debt service. The program currently pauses new applications (effective November 28, 2025) while PONs 22-001 and 22-002 are updated, but continues processing existing waitlist loans.
Program details
- Program ID
- 5131
- Last updated
- 6/30/2025
Eligibility
- Sectors
- local government schools institutional
- Technologies
- solar photovoltaics combined heat & power wind (small) other distributed generation technologies lighting lighting controls/sensors chillers furnaces boilers heat pumps air conditioners energy mgmt. systems/building controls building insulation motors custom/others pending approval other ee lithium-ion level-2 electric vehicle service equipment direct current fast charging equipment
Program summary
Cities, counties, public care institutions, public hospitals, public schools and colleges, and special districts in California can apply for low-interest loans from the California Energy Commission for energy efficiency projects in their buildings and facilities. Residential and commercial projects and non-profit institutions are not eligible for these funds.
Entities eligible for 0% loans include:
- School districts
- Charter schools
- County office of educations
- State special schools
Entities eligible for 1% loans include:
- Cities
- Counties
- Special Districts
- Public College or University
- Community Colleges
- Public Care Institutions/ Public Hospitals
- University of California
- California State Universities
There is no minimum loan amount, but the maximum loan amount per application is $3 million. The loan term cannot exceed the useful life of loan-funded equipment, and will be determined on a case-by-case basis based on the estimated annual energy cost savings from the projects. The exact loan term will be determined such that the energy savings will cover the loan payments.
For a project to be considered, it must have proven energy savings and meet the eligibility requirements of the loan program. Examples of projects include:
- Lighting systems
- Pumps and motors
- Streetlights and LED traffic signals
- Energy management systems and equipment controls
- Building insulation
- Energy generation including renewable energy and combined heat and power projects
- Heating, ventilation and air conditioning equipment
- Waste water treatment equipment
- Load shifting projects, including thermal energy storage
- Energy storage systems.
- Electric vehicle charging infrastructure used to power public fleets.
Full details and application packets are available at the web site above.
Contact & resources
- Contact email
- pubprog@energy.state.ca.us
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
