Commercial Energy Efficiency Loan Program (Tennessee)

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Last modified on February 12, 2015.

Financial Incentive Program

Place Tennessee

Name Commercial Energy Efficiency Loan Program
Incentive Type State Loan Program
Applicable Sector Commercial, Industrial, Nonprofit
Eligible Technologies Central Air conditioners, Comprehensive Measures/Whole Building, Custom/Others pending approval, Heat pumps, Lighting, Processing and Manufacturing Equipment, CHP/Cogeneration, Custom Renewable Energy, Custom Co-Generation
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Energy Efficiency Incentive Programs, Renewable Energy Incentive Programs
Amount $20,000 - $5 million

Shared Savings Option: retain up to 50% of monthly energy savings, pay loan with remainder.

Start Date 2011-01-04

Funding Source State of Tennessee, U.S. Department of Energy, U.S. Economic Development Administration, Pathway Lending, Pinnacle Financial Partners and the Tennessee Valley Authority

Maximum Incentive $5 million

100% of cost

Program Budget $50 million

Terms Interest Rate: 2% fixed up to 5 year term; 5% fixed for 5-10 year terms

Repayment up to 10 years
All loan costs may be financed; no prepayment penalty. Loan recipients must complete a vendor proposal with detailed project energy savings.

Program Administrator Pathway Lending Community Development Financial Institution
Date added to DSIRE 2010-09-01
Last DSIRE Review 2012-11-19

References DSIRE[1]


Based on a U.S. Department of Energy Industrial Loan program, Pathway Lending's Energy Efficiency Loan Program provides Tennessee business and non-profit entities with below-market loans for energy efficiency and renewable energy improvements. The shared savings option allows organizations to pay off the loan over a 10-year period with 50% of the money going to renewable energy and energy efficiency projects, while retaining the remaining 50% through energy savings to pay off the loan (most common for projects with a two-year simple payback and a four-year loan term). All costs related to the efficiency measures may be financed, including loan fees, assessments, design, equipment and installation. The amount of savings achieved monthly through energy use reduction determines the monthly payments for the loan as long as payments do not exceed 10 years.

Pathway Lending is currently working with the following city and county governments to provide these low interest loans*:

  • Memphis/Shelby County
  • Knoxville/Knox County
  • Nashville/Davidson County

All required documents for applications and reports are available on the Pathway Lending web site.

*Additional communities are encouraged to participate in the program. For more information, please contact Pathway Lending.

Incentive Contact

Contact Name Pathway Lending
Department Tennessee Department of Economic and Community Development

Address 201 Venture Circle

Place Nashville, Tennessee
Zip/Postal Code 37228
Phone (888) 533-7284
Phone 2 (615) 425-7171


  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"