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Energy Loan Program Questions & Answers
Want to know if your project has energy savings potential? 

Review our Energy Loan Program brochure to learn about technical help, free energy audits for public agencies and details on applying for a loan. Give us a call to discuss your project.

What is eligible? 
Most energy efficiency measures, renewable energy measures and waste heat projects are eligible. See the list to the right for energy project ideas. Loans can pay for related costs such as engineering and design, permits, loan fees, and project management. Consider using an energy loan to supplement your construction or remodeling project´s financing, handle cost-overruns or provide for more energy-efficient components. 
 
An applicant that must obtain an energy facility site certificate under ORS 469.300 to 469.520 for a project is not eligible for a loan except if the project is exempted from the site certificate requirement by ORS 469.320(2) or other exemptions granted by the Energy Facility Siting Council.


How can I identify possible energy projects? 
If your public agency facility uses more than $10,000 in energy per year, you may qualify for a free energy analysis from the Energy Loan Program. Your utility may offer an energy analysis. Other resources may be available in your community. Call us for more information. 

What incentives are available? 
Many commercial projects qualify for both the Business Energy Tax Credit (BETC) and a low-interest loan. Check with us about the availability of rebates, tax credits and other incentives. 

What are the rates? 
Loans are fixed rate. Rates vary depending on the type of borrower and project and when the Loan Program sold bonds. Call the Oregon Department of Energy for current interest rates. Commercial renewable energy and waste heat projects may qualify for lower tax-exempt rates. Interest rate is just one consideration in finding your best deal, however. Compare the benefits of an energy loan with those of other financing sources. Link to our Rates page for more information.

What about fees? 
The application fee is .1 percent (up to $2500) of the amount requested. The Energy Loan Program also charges an underwriting fee of .5 percent, with a $500 minimum and $5,000 maximum. Any amount of the underwriting fee greater than $500 is credited to the 
1 percent loan fee at closing. The loan fee can be paid from loan proceeds. Link to our Fees page for more information.

What are the terms? 
Loans usually range between $20,000 and $20 million and loan terms usually range from five to 15 years, depending on available funds and project type. Longer terms may be available. The loan term must be within the expected life of the project 

What will my loan payment be?
First, find the estimated interest rate from the Rates Schedule for your type of loan. Then, using our calculator, enter the amount of your loan, term, interest rate and select the payment type. To determine your payment, just push the calculate button. It´s that easy!
 
How long does it take? 
For public agencies, upon receipt of a completed application package, loans under $100,000 can be processed within three weeks and loans over $100,000 within two months. For commercial borrowers, loan review can take a few weeks for smaller loans and up to several months for large and complex projects. Larger projects qualifying for tax-exempt rates may need an additional three months so the Energy Loan Program can sell bonds. We recommend a pre-application meeting with a loan officer.

Is collateral required? 

Yes. Adequate collateral for government borrowers is the equipment being financed and the borrower´s pledge to make payments. Commercial loans must be fully secured. A first or second mortgage on the project´s land, buildings, and equipment is usually pledged. Other assets may be pledged, if necessary. 

How can I get an application? 

Please contact the Oregon Department of Energy for loan applications. Some applications are also available on-line.

This is intended to be only a brief summary. We encourage you to contact the Energy Loan Program toll-free at 1-800-221-8035 or  (503) 378-4040 in Salem for more information. 
 
Energy Loan Brochure (pdf)
 
Examples of eligible projects (pdf)
 
Business Energy Tax Credit Program