Financing Energy Efficiency Projects for Nonprofits

The Environmental and Energy Study Institute provides a guide for nonprofits on overcoming the barrier of upfront costs for energy efficiency retrofits. It details a combination of utility rebates, state and federal incentives, internal funding strategies, and third-party financing mechanisms to achieve long-term operational savings and environmental sustainability.

• Nonprofits can utilize the U.S. Department of Energy’s (DOE’s) Building Energy Asset Scoring Tool (Asset Score), a web-based calculator, to simulate building performance and visualize potential energy savings and upgrade costs before making financial decisions.
• Utility rebates are available for both limited measures—such as thermostats, boilers, or lighting systems—and whole-building retrofits. The U.S. Environmental Protection Agency (EPA) provides a list of nationwide utilities offering these rebates, often requiring the use of the ENERGY STAR® Portfolio Manager® for benchmarking.
• Nonprofits can manage upfront costs by blending internal financing from operating or capital budgets with utility rebates. Savings from these projects can be used to create and replenish a dedicated revolving fund for future efficiency projects.
• For larger projects involving building envelope improvements or heating, cooling, and ventilation systems, third-party financing is often necessary. Available innovative mechanisms include Property Access Clean Energy (PACE), on-bill financing, and specialized loans from green banks.
• The Database of State Incentives for Renewables and Efficiency® (DSIRE®) serves as a comprehensive searchable resource for identifying federal, state, local, and utility-based grants and rebates.

APA

Yañez-Barnuevo, M. (2022). Financing Energy Efficiency Projects for Nonprofits. Environmental and Energy Study Institute. https://www.eesi.org/articles/view/financing-energy-efficiency-projects-for-nonprofits

Chicago

Yañez-Barnuevo, Miguel. Financing Energy Efficiency Projects for Nonprofits. Environmental and Energy Study Institute, 2022. https://www.eesi.org/articles/view/financing-energy-efficiency-projects-for-nonprofits.

Wikipedia

{{cite report |last1=Yañez-Barnuevo |first1=Miguel |title=Financing Energy Efficiency Projects for Nonprofits |publisher=Environmental and Energy Study Institute |date=18 July 2022 |url=https://www.eesi.org/articles/view/financing-energy-efficiency-projects-for-nonprofits |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{yaezbarnuevo2022financing, author = {Yañez-Barnuevo, Miguel}, title = {{Financing Energy Efficiency Projects for Nonprofits}}, institution = {Environmental and Energy Study Institute}, year = {2022}, month = jul, url = {https://www.eesi.org/articles/view/financing-energy-efficiency-projects-for-nonprofits}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }