Clean Energy Financing and Funding

The TDEC Office of Energy Programs (OEP) supports and promotes several clean energy financing and funding programs. Projects supported by these programs include energy efficiency upgrades, renewable energy power installations, and more.

Energy Efficiency and Renewable Energy Loan Program

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.

TVA’s EnergyRight for Business & Industry

As businesses look for ways to promote customer and workforce safety during the COVID-19 pandemic, many are considering adoption of ultraviolet germicidal irradiation (UVGI) technologies that can be used for disinfection. The Tennessee Valley Authority’s (TVA) EnergyRight Business & Industry program is currently offering incentives to qualifying companies at $30.00 per ton for duct-mounted UVGI systems installed. TVA will update its incentives as it identifies more opportunities to help the Valley recover from COVID-19 and so encourages companies to check back for other offerings in the future. Visit the EnergyRight page to learn more.

Energy Efficiency and Conservation Block Grant Program

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. 

Rural Energy for America Program

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.

Energy Efficiency Revolving Loan Fund Capitalization Grant Program

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.

Energy Efficient Schools Initiative

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. 

STORM Act

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. 

TVA's EnergyRight for Business & Industry photo, "Energy Audit," by Dennis Schroeder, NREL. All other photos courtesy of TDEC OEP staff, Wikimedia Commons, or Pixabay.com.