Energy Efficiency Revolving Loan Fund
Administered by Illinois Finance Authority & Climate Bank
As a nonprofit or public entity in Illinois, you can access low-interest bridge loans of up to $1,000,000 to finance building electrification, energy storage, and distributed generation projects—with no monthly payments due until you receive federal direct-pay tax credits or Illinois Solar for All incentives, addressing the timing gap that has historically prevented your organization from participating in clean energy programs.
This program expands your addressable market by enabling nonprofits and public entities to finance energy efficiency and clean energy projects that were previously inaccessible due to their inability to use tax credits; IFA's bridge loans cover up to $1,000,000 for up to 24 months with flexible terms, and the Authority may co-finance project costs not covered by IRA tax credits and Illinois Solar for All incentives.
The EE RLF Capitalization Grant Program, funded by the Bipartisan Infrastructure Law through the U.S. Department of Energy and administered by the Illinois Finance Authority & Climate Bank in partnership with IEPA's Office of Energy, provides bridge financing (up to $1,000,000 for 24 months, interest-only until direct-pay receipt) to nonprofits, public entities, and schools to access federal IRA direct-pay credits and Illinois Solar for All incentives—targeting underserved communities and addressing implementation delays that impede clean energy adoption among tax-exempt organizations.
Program details
- Program ID
- 22747
- Last updated
- 7/29/2025
Eligibility
- Sectors
- commercial local government nonprofit schools multifamily residential
Program summary
The Illinois Environmental Protection Agency (“IEPA”) Office of Energy, in partnership with the Illinois Finance Authority & Climate Bank (“IFA”), is excited to announce the launch of a new Energy Efficiency Revolving Loan Fund (“EE RLF”) Capitalization Grant Program made possible by the Bipartisan Infrastructure Law (“BIL”) and the U.S. Department of Energy (“US DOE”). This program aims to support and accelerate energy efficiency projects statewide, with a special focus on assisting nonprofits, public entities, and underserved communities.
The EE RLF will introduce a specialized Bridge Loan to help nonprofits and public entities finance building electrification, energy storage, and distributed generation projects. Federal tax credits have traditionally been nonrefundable, meaning that if their tax credits exceed the amount owed in taxes, they would not get refunded. This poses a problem for nonprofits and local governments because they do not pay taxes and, subsequently, could not receive these incentives. Under the Inflation Reduction Act (“IRA”), these groups are now eligible for direct payments for their clean energy projects instead of tax credits. However, the delay in receiving these payments can hinder project implementation. We have seen similar problems in Illinois with the receipt of Illinois Solar for All incentives upon project completion and a lack of up-front funding.
To minimize this gap, IFA’s Bridge Loans will offer low-interest, short-term financing up to $1,000,000. Loans are available for up to 24 months, with no monthly payments required until receipt of direct pay tax credits from the U.S. Treasury and/or receipt of Solar for All incentives from the Illinois Power Agency. In select cases, the Authority will also consider participating with a Project Lender to finance project costs not covered by IRA Tax Credits and IL Solar for All incentives. These financing solutions ensure that nonprofit and public entities can participate fully in the clean energy transition.
Contact & resources
- Contact email
- mcolangelo@il-fa.com
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
