Small-Scale Energy Loan Program

October 10, 2023


Note: This program is currently insolvent and has been on hiatus since 2015. The insolvency is a result of the default of high-risk loans that occurred between 2007 and 2012 and the lack of new loan origination since 2015. The program will require General Fund support to meet bond debt service payments in 2022 and 2023. The 2021 Legislature in SB 5506 (2021) appropriated $3.5 million General Fund to ODOE to pay SELP bond debt service through the 2021-23 biennium. As of October 2023, SELP is not currently accepting new loan applications.

The Oregon Small-Scale Energy Loan Program (SELP) was created in 1979 after voters approved a constitutional amendment authorizing the sale of bonds to finance small-scale, local energy projects and is administered by the Oregon Department of Energy. The sale of bonds is made on a periodic basis and, occasionally, may be done to accommodate a particularly large loan request. 

The program offers low-interest loans for projects that:

  • Conserves energy;
  • Produce energy from renewable resources such as water, wind, geothermal, solar, biomass, waste materials or waste heat;
  • Use recycled materials to create products; or
  • Use alternative fuels.

Loans are available to individuals, businesses, schools, cities, counties, special districts, state and federal agencies, public corporations, cooperatives, tribes, and non-profits. School districts receive special rates. 

Though there is no legal maximum loan, the size of loans generally ranges from $20,000 to $20 million. Terms vary, but are generally set to match the term of the bonds that funded the loans. Loan terms may not exceed project life. Loan fees are set based on the size of the loan and range from 1 - 2% of the loan  amount requested.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Oregon
Incentive Type: Loan Program
Web Site:
Administrator: Oregon Department of Energy
Start Date:
Eligible Renewable/Other Technologies:
  • Solar - Passive
  • Solar Water Heat
  • Solar Space Heat
  • Geothermal Electric
  • Solar Thermal Process Heat
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Geothermal Heat Pumps
  • Combined Heat & Power
  • Water Heaters
  • Lighting
  • Chillers
  • Boilers
  • Heat pumps
  • Air conditioners
  • Heat recovery
  • Programmable Thermostats
  • Energy Mgmt. Systems/Building Controls
  • Caulking/Weather-stripping
  • Duct/Air sealing
  • Building Insulation
  • Windows
  • Motors
  • Comprehensive Measures/Whole Building
  • Custom/Others pending approval
  • Other EE
  • Wind (Small)
  • Hydroelectric (Small)
  • Geothermal Direct-Use
Maximum Loan: None
Loan Term: Terms vary, generally in the range of 5 to 15 years. The loan term must be within the expected life of the project.


Name: OAR 330-110-0005 et seq.
Date Enacted: 5/20/1980
Effective Date: 5/20/1980
Name: ORS § 470.050 et seq.
Date Enacted: 06/14/2005
Effective Date: 01/01/2006


Name: Loan Program
Organization: Oregon Department of Energy
Address: 550 Capitol St. NE, 1st Floor
Salem OR 97301
Phone: (503) 378-4040

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.