Energy Efficiency Revolving Loan Fund

Attention non-profit and for-profit businesses. Want to reduce your utility bills/expenses for buildings you own or operate? Improve your building’s performance? Reduce your building’s emissions and operating expenses? Help your community become more resilient?

The Energy Minerals and Natural Resources Division (EMNRD) has received over $5 million in funding from the U.S. Department of Energy to create a loan program and has partnered with the New Mexico Finance Authority (NMFA) to offer low-cost loans to eligible commercial entities for energy efficiency upgrades.

Who is eligible? Loans from the Energy Efficiency Revolving Loan Fund (EERLF) will be available to private nonprofit and for-profit entities with buildings that are used for a public or community benefit, for example health care, educational, recreational or cultural facilities benefiting the local community.

Note: The commercial entity must do a majority of its business in New Mexico and

• own or operate one or more commercial buildings; OR
• own or operate commercial space in a building that serves multiple functions such as a building for commercial and residential operations.

What can loan proceeds be used for? Energy efficiency audit costs, upgrades and retrofits that improve overall energy consumption, for example smart thermostats, heating, ventilation and air conditioning (HVAC), windows and doors, insulation, heating systems, air sealing, lighting and building envelope upgrades and relevant, targeted roof repairs. Solar and electric panels are not eligible uses on a standalone basis but are eligible as part of a comprehensive energy efficiency upgrade.

Steps to applying for a low-interest loan from the EERLF:  

1. Fill out the Interest Form and talk to ECAM staff (emnrd.ecmd@emnrd.nm.gov).
2. Meet with auditors, such as one of the Energy Savings Performance Contractors (ESCOs) with a statewide price agreement, to find one that suits your project.
3. Complete a commercial energy audit that meets the following conditions:
   • the audit must determine the facility’s overall consumption;
   • the audit must identify the period and level of peak energy demand for each building within the facility and the sources of energy consumption that are contributing the most to that period of peak energy demand.
   • the audit must recommend controls and management systems to reduce or redistribute peak energy consumption; and
   • the audit must estimate the total energy and cost savings potential for the facility if all recommended upgrades and retrofits are implemented, using software approved by US Department of Energy.
4. Once the audit and the recommended scope of work have been reviewed and approved by ECAM, you will receive access to the loan application.
5. Submit the loan application form to NMFA. NMFA staff will contact you during underwriting process. Applications meeting the program’s lending requirements will be recommended for approval by the NMFA Board.
6. Once approved for a loan, NMFA staff will work with you to close on a loan agreement. Once you have closed on a loan, you may contract with an ESCO to do the energy efficiency upgrades.

Loan Information  

• Loans may be for amounts between $250,000 and $1,000,000.
• Loan terms cannot exceed the useful life of the project or 15 years.
• Loans are offered at a fixed interest rate of 2%.
• Borrowers must contribute a minimum of 5% of the total project cost (in cash or in-kind)
• Loans will be underwritten based on NMFA credit parameters.

U.S. DOE Award #DE-EE0010355