Funding Opportunities

There are many different sources of funding available for energy efficiency projects, with many different funding cycles and types of eligible projects, and it can be difficult to know where to look! To help, a short summary is provided below of:

  1. Online portals of funding resources;
  2. Specific funding sources to know;
  3. How to access funding news on this site.

1.) Online Portals of Funding Resources

Cool’s Funding Wizard: is a resource developed by California’s State Agencies, Universities, and the non-profit organization Nex10 to provide resources for Californians pursuing energy efficiency and climate action goals.’s Funding Wizard allows you to search for grants, rebates, tax credits, and other financial assistance to assist you with energy efficiency and renewable energy projects, clean air vehicle purchases/retrofits, recycling and waste prevention, water recycling, and many other environmental projects.

CAEATFA Hub for Energy Efficiency Financing Pilots: CAEATFA is developing the California Hub for Energy Efficiency Financing Pilot Programs in collaboration with the California Public Utilities Commission (CPUC) and the state’s investor-owned utilities (IOUs). These pilot programs are designed to help California achieve its energy efficiency goals by increasing the availability of lower-cost financing for energy efficiency investments throughout the state. Financing structures here may be a resource for local governments served by IOUs, and/or for the communities they serve.


2.) Specific Funding Sources to Know:

California Energy Commission. The California Energy Commission’s Energy Partnership Program helps cities and counties to reduce energy use in their office buildings, police and fire stations, and other buildings. An initial free feasibility study identifies possible energy efficiency projects. There also are funds available (1% interest) through the Energy Conservation Assistance Act.

Your Utility. California’s investor owned utilities (PG&E, SDG&E, Southern CA Edison, Southern CA Gas Company) offer on-bill financing (0% interest) for local government energy-saving improvements for their facilities.

If you are served by a public utility or other utility administrator, you may have different funding available – contact your utility provider or the Coordinator for more information.

CACommunities.orgCalifornia Communities, co-sponsored by the League of California Cities and the California State Association of Counties, provides California cities, counties and other public agencies with low cost tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economical growth, and improve the overall quality of life in local communities throughout California.

Water-Energy Efficiency Funding. The Water-Energy Grant Program is run by the California Department of Water Resources (DWR). $19 million is currently available through the program, and local agencies, joint powers authorities, and nonprofit organizations are all eligible applicants. The DWR will be prioritizing the following funding areas in 2016 applications:

  • Commercial Water Efficiency or Institutional Water Efficiency Programs;
  • Projects that reduce greenhouse gas, reduce water and reduce energy use;
  • Only projects with water conservation measures that also save energy.

Residential New Construction

California Advanced Homes Program (CAHP) administered statewide: Participant Handbook and Program Agreement for Single-Family and Multi-Family New Construction Projects

Multi-family Energy Efficiency Funding.

A list of incentive programs targeting multi-family properties is below. For best practices and more information on reaching multi-family, click here.

Funding available from Cap and Trade Auction Proceeds (the Greenhouse Gas Reduction Fund). Information on funding available from cap and trade proceeds is available California’s Air Resources Board (ARB) website, and by searching “cap and trade” on this website.

3.) How to Access Funding News on this Site

Along with the resources above, news is regularly posted on that may include new developments in funding sources, changes in funding rounds, and other news useful to local governments that want to stay informed. Click on the funding or financing tags to the lower right to see news posts with funding and financing information. You can also use the search box to search by funding type.

Other Documents:

Energy Resources for California Local Governments-2013 (March 2013)

Energy Elements Examples (June 2011)

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