California Alternative Energy and Advanced Transportation Financing Authority

Commercial Loans, Leases, and Energy Service Agreements

Designed to encourage energy efficiency financing for small
businesses and commercial entities of any size.

Contact Information

If you have any questions about the California Hub for Energy Efficiency Financing pilot programs, please contact or (916) 651-8157.

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CAEATFA is launching commercial energy efficiency financing pilots, targeted at small businesses and non-residential entities of any size.

The Small Business Energy Efficiency Financing program features a credit enhancement to help financing entities mitigate risk. Eligible customers include for-profits and non-profits meeting one of the following requirements: fewer than 100 employees, annual revenues of less than $15 million or adhering to SBA size limitations. Products supported will include loans, leases, equipment financing agreements, service agreements and savings-based payment agreements. An on-bill repayment option will be added to the Program in 2019.

The Non-Residential pilot encourages energy efficiency for commercial entities of any size, as well as governments. In this program, financing agreements are repaid on the customer’s utility bill (on-bill repayments).

View graphical summary of commercial pilots

Small Business Financing (SBF) Program open for finance company enrollment

Regulations for the Small Business Energy Efficiency Financing Program took effect on December 17th, 2018 and the Program is open for finance companies to enroll. The Program will be open for Contractors and Project Developer enrollment in February, 2019 and will be rolled out to small business customers later in 2019.

  • Click here to access the Regulation Text, Finance Company Application, Program Guide, list of pre-approved Energy Savings Measures and other resources

SBF Program Background

Program Features

The Small Business program includes these features:

  • Energy saving measures may qualify through a broadly inclusive list, professional certification, or utility rebate and incentive programs, allowing projects to be simple or highly customized.
  • Participating finance companies receive a credit enhancement in the form of a loss reserve contribution of 20% of the first $50,000 of financing and 5% of the next $950,000 of financing, allowing the program to scale from very small to very large projects.
  • A variety of financing products are supported: loans, leases, equipment financing agreements, service agreements and savings-based payment agreements.
  • Both building owners and building tenants may access financing.
  • A Project Developer role allows participation by entities which provide technical assistance and project management without engaging in installation.

Regulation Development

CAEATFA utilized the emergency rulemaking process, filing a Notice of Emergency Regulations on November 30, 2018 and submitting regulations to the Office of Administrative Law on December 7, 2018. Proposed regulations were approved by the CAEATFA Board on November 13, 2018 following a public workshop held on October 9, 2018 followed by a comment period that ran through October 19, 2018. CAEATFA also held a public workshop seeking input on the proposed program design on April 19, 2018.

Click here to access the regulations, a program guide and other resources.

Additional information on the Small Business Program can be found at