There are several ways to access capital to pay for your retrofit.  In exchange for paying little to nothing up front, you will benefit from long term savings delivered by your energy-related capital improvements.

State Financing

The State of New York offers two different loans to businesses that pursue energy efficiency retrofits: On-bill Recovery Loans and Participation Loans. 


If you obtain a commercial loan and at least half of the proceeds fund energy conservation measures, then the State of New York will buy down the interest of half of the loan or $50,000 of the loan, whichever amount is less. The state buys down your interest at a rate of 2%. For instance, a $100,000 loan with an interest rate of 10% could be reduced to 6% as a Participation Loan. Integrating a Participation Loan with a Small Business Administration (SBA) loan reduces the blended interest rate further and makes the transaction no money down.


An On-bill Recovery loan is a low-interest (2.5%), no money down loan of up to $50,000 that you can receive from the State of New York to perform an energy efficiency retrofit. You pay the loan back through a surcharge on your electricity bill. You have up to ten years to pay the loan off. Savings from your energy efficiency retrofit more than make up for the repayment of your loan; the state will not approve the transaction otherwise.

Local Utility Incentive Programs

Depending on the measure (and your property's location), utility incentive programs can subsidize 30 to 100 percent of the cost of select measures in your retrofit. 

Energy Savings Performance Contract

In an Energy Savings Performance Contract, the engineer, contractor, and financier act as one unit effectively. The ESPC provider does not require money up front to perform your retrofit. Rather, the provider asks for a fixed percentage of the savings and incentive program revenues that they can attain from upgrading your building over a set period of time. Claiming a percentage of your savings and revenues (typically 30%) incentivizes the provider to continuously support your building and innovate so that your overall savings is as large as possible.  See Process page for details.