Energy Efficiency Loans for State Government Agencies

June 14, 2024

Summary

Through the Green Bank of Kentucky, executive branch state agencies may be eligible for three separate energy loan products, depending on the proposed energy conservation improvements. Prior to applying, all agencies are required to submit an energy survey (available on the Green Bank's web site). The Green Bank will then forward the loan application packet (including information regarding the additional required documentation) for the agency to complete and submit. All application letters must be signed by the agency head.

Initial funding for the Green Bank of Kentucky provided by the American Recovery and Reinvestment Act (ARRA) through the Kentucky State Energy Program.

eSELF Revolving Loan
This loan is for energy conservation projects costing between $50,000 and $225,000 that will result in at least a 20% energy reduction. Improvement projects funded under this loan will managed directly by the state agency.

Hybrid Revolving Loan
This loan is for energy conservation projects costing between $50,000 and $600,000. An energy audit or engineering analysis is required as well as a design and development package. The state agency is responsible for procuring materials and service. The cost of the audit/engineering analysis may be rolled into the loan.

ESPC Revolving Loan
This loan is for comprehensive energy conservation projects costing more than $600,000 and that utilize an Energy Savings Performance Company (ESPC) or Energy Service Company (ESCO). A detailed industrial energy audits as well as cost-benefit analysis is required. The cost of the audit/engineering analysis may be rolled into the loan.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Kentucky
Incentive Type: Loan Program
Web Site: https://finance.ky.gov/office-of-the-secretary/green-bank/Pages/energy-loans.aspx
Administrator: Finance and Administration Cabinet
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Water Heat
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Geothermal Heat Pumps
  • Combined Heat & Power
  • Clothes Washers
  • Equipment Insulation
  • Water Heaters
  • Lighting
  • Lighting Controls/Sensors
  • Chillers
  • Furnaces
  • Boilers
  • Heat pumps
  • Air conditioners
  • Heat recovery
  • Steam-system upgrades
  • Compressed air
  • Programmable Thermostats
  • Energy Mgmt. Systems/Building Controls
  • Motors
  • Motor VFDs
  • Comprehensive Measures/Whole Building
  • Custom/Others pending approval
  • Other EE
  • Yes; specific technologies not identified
  • Wind (Small)
  • Anaerobic Digestion
Maximum Loan: eSELF: $225,000 Hybrid: $600,000 ESPC: Not specified

Authorities

Name: KRS § 56.770-784

Contact

Name: Office of the Secretary
Organization: Kentucky Finance and Administration Cabinet
Address: 200 Mero Street, 5th Floor
Frankfort KY 40622
Phone: (502) 564-4240

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.