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Incentives/Policies for Renewables & Efficiency

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State Agency Loan Program   

Last DSIRE Review: 10/16/2014
Program Overview:
State: Maryland
Incentive Type: State Loan Program
Eligible Efficiency Technologies: Lighting, Lighting Controls/Sensors, Chillers , Boilers, Energy Mgmt. Systems/Building Controls, Custom/Others pending approval
Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Geothermal Heat Pumps, Solar Pool Heating, Daylighting
Applicable Sectors: State Government
Amount:Varies, typical loans from $50,000 - $250,000
Terms:0% interest; 1% administrative fee
Funding Source:Oil Overcharge Restitution Trust funds, RGGI, ARRA
Program Budget:FY 2014: $1.7 million
Web Site:

The State Agency Loan Program (SALP) was established in 1991 using funds from the Energy Overcharge Restitution Fund. Through this revolving loan program, the Maryland Energy Administration (MEA) provides loans to state agencies for cost-effective energy efficiency improvements in state facilities. Typical loan amounts range from $50,000 to $250,000. State agencies pay zero interest with a one percent administration fee. Their repayments are made from the agency's fuel and utility budget, based on the avoided energy costs of the project. Repayments replenish the fund so that it can continue to make additional loans each year. During 2011 alone the MEA reports making $6.5 million in loans which are expected to result in energy cost savings of over $13 million over the life of the improvements. It also reports that since 2007, it is has issued loans totaling $16.2 million with projected energy cost savings of over $2 million.

Just over half of all SALP loans are directed to Energy Performance Contracts (EPCs) that the Maryland Department of General Services coordinates with the State’s agencies. These EPCs are typically large scale projects that are designed to reduce energy costs and consumption. Each year from October to November, the MEA solicits interest from facilities managers and energy coordinators in state agencies for energy efficiency projects to be funded the next fiscal year (which begins July 1). The annual solicitation is for energy efficiency projects that typically are not covered in Energy Performance Contracts (i.e., smaller projects for which the EPC process is not appropriate).

The program was capitalized between 1991 and 1996 with approximately $3 million in Oil Overcharge Restitution Trust funds. An additional $800,000 was added to the fund in Fiscal Year (FY) 2009 from the proceeds of carbon emission allowance auctions under the Regional Greenhouse Gas Initiative (RGGI) and further funding of $6.9 million was added by the American Recovery and Reinvestment Act (ARRA) in 2010.  In the past, approximately $1 million in new loans have been awarded each fiscal year, though as noted above, in recent years additional funding has permitted the program to expand. During FY 2014 the total program budget was $1.7 million.

The SALP provides a financing mechanism useful to agencies in meeting the requirements of Executive Order 01.01.2001.02 "Sustaining Maryland's Future with Clean Power, Green Buildings and Energy Efficiency."

  David St. Jean
Maryland Energy Administration
60 West Street, Suite 300
Annapolis, MD 21401
Phone: (410) 260-7182
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.