Clean Energy Financing and Funding

The Energy Efficiency and Renewable Energy Loan Program launched in 2010 to assist Tennessee entities in implementing energy efficiency and renewable energy improvements. Pathway Lending, a US Treasury certified community development financial institution, oversees the $29 million revolving loan fund. Eligible projects under the Program include, but are not limited to: energy efficient equipment upgrades; lighting; building envelope retrofits; renewable energy installations; and more. Qualifying entities can apply for loans between $20,000 and $5 million.

Each year, the U.S. Department of Agriculture provides loan financing and grant funding through REAP to agricultural producers and rural small businesses for renewable energy systems and energy efficiency improvements. Funds may be used for a variety of energy efficiency projects, including insulation, lighting, replacement of doors and windows, and more. Funds may also be used for the acquisition and installation of renewable energy systems, including biomass, geothermal, hydropower, wind, and solar. Visit the REAP webpage to learn more.

TVA EnergyRight offers various types of support for business and industry partners, including energy efficiency incentives, revitalization programs, and strategic energy management. TVA provides no-cost energy assessments to customers with an electrical demand of 1,000 kW and greater to identify and quantify incentive-eligible energy efficiency projects. For industrial customers with an electrical demand of 3,500kW and greater, TVA and its LPCs offer the Strategic Energy Management program, which lasts two years and helps qualifying industrial customers increase profitability and achieve sustainability goals by reducing energy use and lowering carbon emissions. The program provides energy performance modeling, energy mapping, onsite engineering studies, and individualized monthly coaching, all tailored to help eliminate energy waste.

The Energy Efficiency and Conservation Block Grant (EECBG) Program will fund audits of and energy efficiency upgrades to county-owned, commercial buildings with multi-use purposes that support community resilience or that are deemed critical facilities. TDEC OEP will fund a total of $4.6 million in subgrants to the fiscal year 2025 distressed counties, as defined by the Appalachian Regional Commission. 

The current Energy Efficient Schools Initiative Loan Program uses a low-interest revolving loan mechanism to fund energy-efficient projects in Tennessee’s public K-12 schools. New construction projects that are designed to exceed the current energy code may also apply and be considered for funding. 

Tennessee has passed legislation authorizing the Tennessee Emergency Management Agency (TEMA) to create, oversee, and manage the Resilient Tennessee Revolving Loan Fund (RLF) to be able to assist local governments in obtaining low-interest loans (1 percent interest rate or less) for hazard mitigation projects. Examples include infrastructure/utility protective measures and generators for critical facilities/infrastructure. 

The Energy Efficiency Revolving Loan Fund Capitalization Grant Program provides capitalization grants to States to establish programs to support audits, upgrades, and retrofits to increase energy efficiency and improve the comfort of buildings. TDEC OEP will establish a new Local Government Energy Efficiency Revolving Loan Fund Program to provide loans for publicly owned buildings for energy audits, upgrades, and retrofits.