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Energy Efficiency and Conservation Loan Program

Open Date:


Close Date:


Eligible Recipients:

  • General Public
  • Private Sector
  • Public Utility Entity

Program Purpose:

  • Energy Infrastructure

Reserved for Energy


Upcoming Milestones:


Rural Development

Funded by:

U.S. Department of Agriculture


What does this program do?

The Energy Efficiency and Conservation Loan Program (EECLP) provides loans to finance energy efficiency and conservation projects for commercial, industrial, and residential consumers. With the EECLP, eligible utilities, including existing Rural Utilities Service (RUS) borrowers can borrow money tied to Treasury rates of interest and re-lend the money to develop new and diverse energy service products within their service territories.

Who may apply?

Loans under the EECLP are available to those businesses (utility systems) that have direct or indirect responsibility for providing retail electric service to persons in a rural area. In general, a rural area for EECLP purposes is a town, or unincorporated area that has a population not greater than 20,000 inhabitants, and any area within a service area of a borrower for which a borrower has an outstanding loan. Eligible communities can be combined into service territories that exceed 20,000. In other words, the EECLP is available for an entity in the business of providing:

  • Retail electric service to consumers,
  • Wholesale electric supply to distribution entities, or
  • Transmission service to distribution or generation entities.

In each one of those cases, the entity providing the applicable service would do it with self-owned or controlled assets under a published tariff that the entity and any associated regulatory agency may adjust.

What are the terms of the loan?

The maximum term for loans under the EECLP is 15 years, unless the funding relates to ground-source loop investments or technology on an aggregate basis with a useful life greater than 15 years.

How may the funds be used?

The EECLP allows borrowers to design their EE Programs. While RUS does not establish specific energy efficiency program designs, the program does require that funding be used to:

  • Improve energy efficiency and/or reduce peak demand on the customer side of the meter;
  • Modify the electric load such that there is a reduction in overall system demand;
  • Stimulate a more efficient use of existing electric facilities;
  • Attract new business and create jobs in rural communities by investing in energy efficiency, and/or
  • Encourage the use of renewable energy fuels for demand-side management or to reduce the use of fossil fuel use within a service territory.

What is an eligible investment or activity under the EELCP?

In addition to energy efficiency measures, EECLP funds could be used to:

  • All energy efficiency measures on a consumer premises
  • Distributed generation for on or off grid renewable energy systems
  • Demand side management investments
  • Energy audits
  • Consumer education and outreach programs
  • Power factor correction equipment on the consumer side of the meter
  • Re-lamping to more energy efficient lighting
  • Other energy efficiency program investments approved by RUS Residential and commercial energy audits
  • Community awareness and outreach programs

Related Resources

Additional information is available on the Resources page.

Funding Details

Funding Source:
Funding Type:
Total Amount Available:
Limit per Applicant:
No limit stated
Estimated Awards:

Applicant Guidance

Contact Information

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