Municipal Energy Reduction Fund

Summary

In March 2010, the New Hampshire Community Development Finance Authority (CDFA) launched a revolving loan program to encourage the state’s municipal governments to invest in energy efficiency and alternative energy. A wide variety of energy efficiency measures and alternative energy technologies are eligible, and the program is customizable, based on a municipality's needs. The CDFA also will work with municipalities to take advantage of other programs that might be available, including utility incentives and other loan programs. School districts are not eligible for this program.

Loans are typically structured so that payments are made with money yielded by energy savings. Loan amounts range from $5,000 to $400,000. Loan terms are as follows: 

• 3 years - 2.50%
• 5 years - 3.00%
• 7 years - 3.50%
• 10 years - 4.00%

This program is supported by New Hampshire's Greenhouse Gas Emissions Reduction Fund, which receives revenue from carbon dioxide (CO2) auctions held under the Regional Greenhouse Gas Initiative (RGGI), of which New Hampshire is a member. Interested municipalities must submit an application through CDFA's online grants management system.