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How to Finance Public Sector Energy Efficiency Projects

January 8, 2002

Lack of funds is often a major barrier to energy-efficiency projects. But, in many cases, funding opportunities for such projects are readily available. Companies can eliminate the need for up-front capital by borrowing from funding sources that are later paid in a percentage of the energy savings that result from the project.

This guide for public-sector agencies — such as city and county governments, public school districts, and hospitals — outlines criteria for evaluating the cost-effectiveness of energy-efficiency projects and describes financing options. The guide provides detailed reviews of a number of these options, including tables that show the benefits and drawbacks of each. It also lists state and federal agencies that provide funding for energy-efficiency projects in the public sector.

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