Energy Efficiency Financing for Public Sector Projects

CA Loan Program local government schools institutional

Administered by: California Energy Commission

Quick Summary

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.

AI-generated summary • Updated 7/12/2026

Program Details

Program ID
5131
Last Updated
6/30/2025

Eligibility

Eligible Sectors
local government schools institutional
Eligible 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 UniversityCommunity Colleges Public Care Institutions/ Public HospitalsUniversity of CaliforniaCalifornia 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 storageEnergy 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
[email protected]

Please verify current program details with the administering agency before making any financial decisions.

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