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Combined Heat and Power Partnership

Energy Efficiency Financing for Public Sector Projects

Date Last Updated12/24/2012
Incentive TypeLoan
Incentive Administrator/Contact OfficeCalifornia Energy Commission
Incentive Initiation Date3/21/2012
Incentive Size and Funding SourceThe California Energy Commission offers low-interest loans for energy efficiency projects in buildings and facilities, including CHP projects. The maximum loan amount is $3 million per application. The current program budget is over $20 million. There is no minimum loan amount. The interest rate is fixed at 1% for the term of the loan.
Eligible RecipientEligible recipients include: cities, counties, public care institutions, public hospitals, public schools and colleges and special districts. Residential and commercial projects and non-profit institutions are not eligible for these funds.
Eligible FuelDoes Not Specify
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required (%)Does Not Specify
Other Selected Eligibility CriteriaProjects with proven energy and/or capacity savings are eligible, provided they meet the ECAA eligibility requirements. A feasibility study is required to verify estimated energy savings. Projects must be technically and economically feasible. Projects can be approved based on a maximum simple payback of 11 years. Projects already funded with an existing loan or already installed are ineligible.
Application Form(s)Application Documents
Other Incentive DetailsThe interest rate is valid until a new loan notice is issued or the loan notice is closed. This interest rate will not be applied retroactively to existing loans. Loans must be repaid from energy cost savings or other legally available funds within a maximum term of 15 years, including principal and interest. The loan repayment term cannot exceed the useful life of the loan funded equipment.
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