Pathway Energy Efficiency Loan Program

March 06, 2023


Pathway Lending's Energy Efficiency Loan Program provides Tennessee business and non-profit entities with below-market loans for energy efficiency and renewable energy improvements. All costs related to the efficiency measures may be financed, including assessments, design, equipment, and installation. Any project that reduces utility consumption, across electric, gas, or water, may apply for financing through this program. The loans are designed to allow for energy cost savings derived from each project to provide the repayment of the loan. 

Starting in 2016, EELP began offering up to six years of financing for qualified energy efficiency and renewable energy projects to Tennessee local governmental entities, including municipalities, counties, school districts, and other similar public agencies. To be eligible for a loan, a governmental entity must have a complete third-party energy audit, assessment, or vendor proposal that details estimated energy savings.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Tennessee
Incentive Type: Loan Program
Web Site:
Administrator: Pathway Lending Community Development Financial Institution
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Photovoltaics
  • Combined Heat & Power
  • Lighting
  • Heat pumps
  • Air conditioners
  • Processing and Manufacturing Equipment
  • Comprehensive Measures/Whole Building
  • Custom/Others pending approval
Maximum Loan: $5 million
100% of cost
Loan Term: 4% fixed up to 5 year term
6% fixed for 5-10 year terms
Repayment up to 10 years
All loan costs may be financed
No prepayment penalty
Loan recipients must complete a vendor proposal with detailed project energy savings
For local governmental entities: Up to 6 years of financing at 4% interest


Name: Pathway Lending
Address: 201 Venture Circle
Nashville TN 37228
Phone: (615) 425-7171

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.