State Agency Loan Program

August 11, 2020


The State Agency Loan Program (SALP) was established in 1991 using funds from the Energy Overcharge Restitution Fund. Through this revolving loan program, the Maryland Energy Administration (MEA) provides loans to state agencies for cost-effective energy efficiency improvements in state facilities. Typical loan amounts range from $50,000 to $250,000. State agencies pay zero interest with a one percent administration fee. Their repayments are made from the agency's fuel and utility budget, based on the avoided energy costs of the project. Repayments replenish the fund so that it can continue to make additional loans each year. During 2011 alone the MEA reports making $6.5 million in loans which are expected to result in energy cost savings of over $13 million over the life of the improvements. It also reports that since 2007, it is has issued loans totaling $16.2 million with projected energy cost savings of over $2 million.

Just over half of all SALP loans are directed to Energy Performance Contracts (EPCs) that the Maryland Department of General Services coordinates with the State’s agencies. These EPCs are typically large scale projects that are designed to reduce energy costs and consumption. Each year from October to November, the MEA solicits interest from facilities managers and energy coordinators in state agencies for energy efficiency projects to be funded the next fiscal year (which begins July 1). The annual solicitation is for energy efficiency projects that typically are not covered in Energy Performance Contracts (i.e., smaller projects for which the EPC process is not appropriate).

The program was capitalized between 1991 and 1996 with approximately $3 million in Oil Overcharge Restitution Trust funds. An additional $800,000 was added to the fund in Fiscal Year (FY) 2009 from the proceeds of carbon emission allowance auctions under the Regional Greenhouse Gas Initiative (RGGI) and further funding of $6.9 million was added by the American Recovery and Reinvestment Act (ARRA) in 2010.  In the past, approximately $1 million in new loans have been awarded each fiscal year, though as noted above, in recent years additional funding has permitted the program to expand. During FY 2014 the total program budget was $1.7 million.

The SALP provides a financing mechanism useful to agencies in meeting the requirements of Executive Order 01.01.2001.02 "Sustaining Maryland's Future with Clean Power, Green Buildings and Energy Efficiency."

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Maryland
Incentive Type: Loan Program
Web Site:
Administrator: Maryland Energy Administration
Start Date:
Eligible Renewable/Other Technologies:
  • Solar - Passive
  • Solar Water Heat
  • Solar Space Heat
  • Solar Photovoltaics
  • Wind (All)
  • Geothermal Heat Pumps
  • Daylighting
  • Solar Pool Heating
  • Lighting
  • Lighting Controls/Sensors
  • Chillers
  • Boilers
  • Energy Mgmt. Systems/Building Controls
  • Custom/Others pending approval
  • Wind (Small)
Maximum Loan: Loan amount range from $50,000 to $250,000
Loan Term: 1% administrative fee
Repayments are made from agency's fuel and utility budget
Interest Rate: 0% interest


Name: David St. Jean
Address: 60 West Street, Suite 300
Annapolis MD 21401
Phone: (410) 260-7182

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.