Financing Energy Efficiency Projects

Access to capital for an energy-efficiency upgrade need not be an issue. Some upgrades require little funding. For those that do require investment, don't worry; there are many traditional and non-traditional financial resources available. A well-designed upgrade can provide your business a positive cash flow from energy savings while paying off the capital investment for new equipment.

For small, inexpensive projects, you may want to use your own internal funds to pay for the upgrade in order to keep your payback period low and return on investment high.

For larger jobs, financing might be the only way to pay for the upgrade. Fortunately, a variety of sources and mechanisms exist for small businesses to finance energy-efficiency improvement projects.

It's your business decision to weigh your competing needs for capital versus continuing increases in operating costs for energy. Remember, even a longer return-on-investment on energy efficiency results in affordable comfort, and new, more reliable equipment that will pay for itself with energy savings. Strategic energy efficiency investments are your hedge against the certainty of higher utility bills that you cannot control.

The following resources can help you find funding information and opportunities for your upgrade:

Did You Know?

Energy-efficient upgrades typically save you money that can be used to pay for the cost of projects.

Grants, Loans and Financing Opportunities

For Energy Saving Projects

ENERGY STAR Resources : Financial Products and; Services
Find lenders in your state that provide loans to small businesses interested in making energy efficient upgrades.
ENERGY STAR Buildings Upgrade Manual's Financing Section (720KB)
Learn about the wide-range financing options available to businesses. Financing is available from small improvements to complete system upgrades.
Special Offers and Rebates on ENERGY STAR Qualified Products
Use this online tool to find special offers and rebates on office equipment, electronics, appliances, and lighting products in your local area.
Alliance to Save Energy : Financing Energy Efficiency
Browse a database of over 60 energy efficiency funds and programs operating throughout the world.
Local Government Commission's Funding Opportunities
Learn about federal, state and local financing and project assistance programs for improving the energy efficiency of buildings.

For Development Energy Efficient Technologies

U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy's Financial Opportunities
Grant opportunities for businesses developing energy efficient technologies.
U.S. Department of Energy Inventions and Innovations Program
Offers financial and technical support to inventors and businesses for promising energy-saving concepts and technologies. The program selects technologies to receive grants through a competitive process.

For Small Business (General)

Small Business Financing - Grants, Loans and Venture Capital
Find information about getting financial assistance for a new or expanding business, including SBA and other government-backed loans, grants, and venture capital.
The Office of Small Business Development Centers (SBDC) is affiliated with the U.S. Small Business Administration (SBA), and has offices in all states offering free services to help small firms develop conventional loan applications for loans backed by the SBA.

Small Business Assistance Programs

Another aspect of funding energy-efficiency is group purchasing with business association members, other franchisees, etc. to achieve lower unit prices on efficient equipment with volume purchases. Read more about this strategy in ENERGY STAR Small Business's Group Purchasing Fact Sheet (165KB).

The Small Business Association of Michigan operates a group purchasing Web site at http://www.sbam.org/ that is open to all small businesses throughout the United States.