New Mexico Offers $5.3M In Low-Interest Loans For Energy-Saving Building Upgrades
Nonprofits, community centers, and other public-serving buildings across New Mexico can now apply for low-interest loans to make their facilities more energy efficient, thanks to a new $5.3 million fund from the state.
The Energy Efficiency Revolving Loan Fund (EERLF), managed by the New Mexico Energy, Minerals and Natural Resources Department (EMNRD), offers loans between $250,000 and $1 million at a 2% fixed interest rate. It’s aimed at helping organizations invest in energy-saving upgrades like HVAC systems, insulation, efficient lighting, and more.
Who Can Apply?
This program is designed for nonprofit and for-profit groups that run community-serving buildings, such as clinics, schools, museums, rec centers, or cultural institutions. At least half of their work or revenue must come from within New Mexico.
What Can The Money Be Used For?
Eligible projects include:
- Energy audits
- Heating and cooling systems
- Lighting upgrades
- New windows, doors, and insulation
- Smart thermostats and energy controls
- Roof repairs (when tied to efficiency improvements)
Note: Solar panels by themselves aren’t covered, but they can be included if they’re part of a larger energy efficiency overhaul.
How To Apply
- Fill out the Interest Form and talk to ECAM staff (emnrd.ecmd@emnrd.nm.gov).
- Meet with auditors, such as one of the Energy Savings Performance Contractors (ESCOs) with a statewide price agreement, to find one that suits the project.
- 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
- 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
- Once the audit and the recommended scope of work have been reviewed and approved by ECAM, access to the loan application will be granted.
- Submit the loan application form to NMFA. NMFA staff will be in contact during the underwriting process, and applications meeting the program’s lending requirements will be recommended for approval by the NMFA Board.
- Once approved for a loan, NMFA staff will work to close on a loan agreement. Once the loan has been closed, an ESCO can be contracted to do the energy efficiency upgrades.
Loan details:
- Loans are 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.
Why It Matters
These low cost loans enabled by the Energy Efficiency Revolving Loan Fund are part of a federal effort to boost clean energy investment across the country, funded through the Bipartisan Infrastructure Law. The goal is to help buildings cut energy use, lower utility bills, and reinvest savings in the communities they serve.
“This loan fund is one more way we are supporting Gov. Lujan Grisham’s goal of boosting New Mexico’s economy while also protecting its environment. These loans will ensure the recipients’ economic viability by lowering the costs for building upgrades while simultaneously reducing their carbon footprints.” — Melanie Kenderdine, EMNRD Secretary
This initiative could be a big step forward in enhancing commercial energy efficiency and reinvesting savings into New Mexico communities, effectively turning clean energy goals into long-term economic and environmental progress. More information is available at the Energy Efficiency Revolving Loan Fund page on the EMNRD website.
Sign up for CleanTechnica's Weekly Substack for Zach and Scott's in-depth analyses and high level summaries, sign up for our daily newsletter, and follow us on Google News!
Whether you have solar power or not, please complete our latest solar power survey.
Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Sign up for our daily newsletter for 15 new cleantech stories a day. Or sign up for our weekly one on top stories of the week if daily is too frequent.
CleanTechnica uses affiliate links. See our policy here.
CleanTechnica's Comment Policy
