Financing for small business energy efficiency projects
The Small Business Financing (SBF) program offers affordable options to help California businesses shrink their energy bills and carbon footprints.
Administered by the State of California with support from the state’s investor-owned utilities, the SBF program is a flexible way to upgrade your business and save.
Program benefits
- Finance 100% of project costs
- Broad list of qualifying measures
- Financing may be used for nonenergy upgrades
- Finance a simple replacement or a comprehensive building upgrade
- Quick approval
- Attractive terms
- Payments based on energy savings
Eligibility
To apply, businesses and nonprofit building owners and tenants must meet at least one of the following requirements below. For a full list of requirements please view the Small Business Financing Program Regulations.
- 100 employees, or fewer
- Annual revenue of less than $15 million
- Meet SBA small business size requirements: annual revenues up to $41.5 million, depending on industry
- Property receives electric or natural gas service from PG&E®, SDG&E®, SCE® or SoCalGas®
What can be financed?
Use the tabs below to browse home improvement projects that can be financed with SBF.
Appliances
High efficiency appliances can cost more up front, but lower energy bills could make up for the price difference over time1.
Eligible ENERGY STAR® appliances: air purifiers, clothes dryers, clothes washers, dishwashers, freezers and refrigerators
1. According to the U.S. Environmental Protection Agency (EPA)+
Building envelope
A leaky building can increase your energy bill during summer and winter. Insulate to maintain a comfortable workplace temperature.
Eligible measures: air sealing, attic insulation, cool roof, floor insulation, heat reflective coating, radiant barrier, wall insulation, window film, efficient windows
Demand response
When energy needs are greater, reduce your usage and be rewarded through a utility demand response program that pays you to reduce your energy usage automatically during brief periods.
Eligible measures: Automated demand response equipment, mechanical energy storage (MES) systems, thermal energy storage (TES) systems
Heating & cooling
Inefficient heating and cooling systems can be a big cost for your business. Save energy by upgrading to energy efficient equipment.
Eligible measures: air filtration and sensors, heat pumps, economizers that pull cooler outside air in, automatic temperature setpoint controls, chiller upgrades, retrofits and replacements, compressors, insulation and sealing, furnaces, fans, boilers, heaters, smart thermostats, split and mini-split air conditioning units and more
Industrial
Reduce energy waste by upgrading to energy efficient industrial equipment.
Eligible measures: air receiver tanks, compressed air units, exhaust hood controls, circulator pumps, process pumps and heat recovery, supervisory control and data acquisition (SCADA) systems, variable frequency drive (VFD) on compressor motors, process pumps, fan motors and more
Agriculture
The U.S. agriculture industry has the potential to save $1 billion in energy cost per year2. Your business can save by upgrading to energy efficient equipment.
Eligible measures: automatic pump shut-off sensors, booster or well pumps, heat recovery, high efficiency ventilation fans, irrigation pumps, irrigation pump testing, plate coolers, sprinkler-to-drip irrigation, variable frequency drive (VFD) on booster or well pump motor and VFD on pump or fan motor
2. According to the American Council for an Energy-Efficient Economy (ACEEE)+
Data centers
Up to 3% of all U.S. electricity powers data centers3. Save energy by upgrading for greater efficiency.
Eligible measures: airflow management devices, aisle containment, aisle layout optimization, ENERGY STAR® network equipment, ENERGY STAR® servers, ENERGY STAR® uninterruptible power supply (UPS), server consolidation, server virtualization
3. According to the U.S. Department of Energy+
Food service
ENERGY STAR® certified kitchen products offer energy savings of 10-70% over standard models4. Save by upgrading your appliances.
Eligible measures: ENERGY STAR® commercial cooking equipment, ENERGY STAR® commercial dishwashing equipment, ENERGY STAR® hot holding cabinet, low flow pre-rinse spray valves, on-demand hand wrap machines, ventilation hood controls
4. According to the U.S. Environmental Protection Agency (EPA)+
Lighting
Replacing older lighting is a great place to start an efficiency upgrade. For some businesses, lighting accounts for 13% of total energy consumption on average5.
Eligible measures: indoor and outdoor controls, LED lighting and accessories and more
5. According to the U.S. Environmental Protection Agency (EPA)+
Pools
Maintaining a pool can be energy intensive. Upgrade by installing an energy efficient pool pump to help you save.
Eligible measures: water heaters, pool covers, pool pump motors
Refrigeration
Upgrading to energy efficient refrigeration can help you save. Restaurants, for example, typically use most of their electricity to power refrigeration6.
Eligible measures: commercial ice machines, commercial refrigerators and freezers, compressor and condensing units, evaporator controls, rapid close doors, vending machines and more
6. According to the U.S. Environmental Protection Agency (EPA)+
Water heating
Replace your old water heater and equipment with new, high-efficiency products
Eligible measures: faucet aerators, heat pump water heaters, low-flow shower heads, ozone laundry systems, shower thermostatic valves, tank insulation, tanked and tankless water heaters and more
Other projects
Explore other ways you can save.
Eligible measures: building and energy management systems, energy audits, energy measurement, monitoring and metering, rebates and more
Get started now
1. Get a project estimate from a contractor
2. Choose an approved finance company and apply
Partnering opportunities
Interested in working with the Small Business Financing program? Learn more:
