Participation Loan
Step 1 – Identify Type of Improvement
Financing Energy Efficiency Improvements
Organizations need a qualified energy assessment to apply for financing.
Small businesses and not-for-profits can get qualified energy assessments through NYSERDA FlexTech program, utility programs, or from qualified energy consultants. All energy assessments must meet NYSERDA’s qualified energy assessment standards [PDF]. Qualified energy assessments identify upgrades that can help reduce energy costs. Follow Steps 1 through 6 for energy efficiency projects. Follow Steps 1 through 6 for energy efficiency projects.
Financing Purchase and Installation of Solar
Once you have selected a solar contractor, the contractor will review your building for orientation and shading, review with you the findings, and show you the project cost and any incentives that may be available. With your approval, the contractor will submit to NYSERDA the Project Application. If the project application is approved by NYSERDA then it may qualify for financing.
If, after accounting for all incentives, and federal and state tax credits, the PV system has a payback period of 15 years or less, then the system qualifies for Participation Loan financing, and you will be sent a project eligibility letter and appropriate documentation. Follow Steps 1 through 5 for solar projects.
Go to Step 5.
Financing Purchase and Installation of an Air Source and Ground Source Heat Pump
Your selected heat pump contractor will review your building’s heating and cooling loads and size a system to suit its needs. Your contractor will review the project with you, including the cost and any incentives that are available. If you agree, the contractor will submit to NYSERDA the NY Clean Heat application provided to the utility and a proforma showing the project cost and payback. If the project is approved, then it may be eligible for financing. For systems equal to or greater than 300,000 BTUs/hour, utility approval is also required for the system to be eligible for financing.
If, after accounting for all incentives and federal and state tax credits, the ground source heat pump system has a payback period of 15 years or less, then the system qualifies for Participation Loan financing, and you will be sent a project eligibility letter and appropriate documentation.
Go to Step 5.
Step 2 – Select Upgrades
Before applying for financing, small businesses and not-for-profits need to:
- Decide which assessment recommendations to implement
- Identify any available utility incentives
- Get contractor quotes on the cost of doing the work
Step 3 – Complete Request for Financing Package
To apply for energy efficiency projects, small businesses and not-for-profits must complete the Request for Financing Package which includes:
- The Request for Financing Form [PDF]
- The Approved Energy Efficiency Measures Worksheet [PDF]
- A copy of contractor quotes and technical cut sheets
- A copy of the qualified energy assessment
Step 4 – Submit Financing Package
Send your completed and signed Request for Financing Package to NYSERDA for approval by mail or email.
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Small Commercial Energy Efficiency Financing |
NYSERDA will notify the customer if the Request for Financing Package is approved or if additional information is required.
Organizations may choose to initiate project planning and development related to their energy efficiency project (e.g., design and specification, contract documents and bids, ordering equipment, scheduling work) prior to their loan closing. However, they do so at their own risk. Organizations may begin installation of their energy efficiency projects only after they close on the loan with their lender. Organizations that install any portion of their energy efficiency project prior to loan closing may be disqualified from the program.
Step 5 – Take Financing Eligibility Documents to Participating Lender
To apply for your loan, take your NYSERDA-approved Request for Financing Package or financing eligibility documents to a lender of your choice. NYSERDA will work with your lender on the financing.
Step 6 – Work with Participating Lender
The lender will decide whether or not to issue a Participation Loan to an organization based on the lender's underwriting criteria. The lender will add the Project Participation Agreement to the Request for Financing Package, indicating the loan terms it has determined for the Borrower, and submit it to NYSERDA for approval.
Organizations that install any portion of their energy efficiency project prior to loan closing may be disqualified from the program.
Frequently Asked Questions
What Happens After the Lender Issues the Participation Loan to My Organization?
For financing energy efficiency improvements, you have 90 days to complete the energy efficiency project after the lender closes the loan.
For financing the purchase and installation of a PV system, you have 270 days to complete the installation of the PV system once the loan closes.
For financing the purchase and installation of ground source heat pumps of less than 300,000 BTUs, you have 120 days to complete the project. For ground source heat pumps of 300,000 BTUs and greater, you have 240 days to complete the installation once the loan has closed.
The lender will invoice you for the entire loan payment, and will remit NYSERDA's portion of the payment to NYSERDA.
Will Someone Verify That the Project Was Completed as Planned?
NYSERDA reserves the right to make post-installation visits to ensure the qualified energy efficiency services have been installed consistent with the approved Request for Financing Package.
Who Can My Organization Contact for More Information?
Questions about the program may be directed to 1-866-NYSERDA or by email to [email protected].
*Late, incomplete, or unsigned Requests for Financing will be returned. Requests for Financing will not be accepted at any other NYSERDA location other than the address identified on the forms.