Program Overview
- Low-interest loans for energy efficiency audits and building retrofits to improve energy efficiency.
- $5 million total funding.
Who is eligible?
- Non-profits and for-profit businesses that do a majority of their business in New Mexico and own or operate a commercial building used for public benefit.
What is offered?
- Loans of $250,000 to $1,000,000 at a fixed interest rate of 2%.
How can I apply?
- Complete interest form and discuss with Energy, Minerals and Natural Resources Department (EMNRD) staff.
- Select an auditor and complete a qualifying commercial energy audit.
- Once EMNRD approves the audit and recommended scope of work, apply for loan from New Mexico Finance Authority (NMFA).
- Once approved by NMFA, close on loan agreement and complete energy efficiency upgrades.
What Does a Qualifying Commercial Energy Audit Address?
To be eligible for the Energy Efficiency Revolving Loan Fund, a commercial energy audit must:
- Determine the facility’s total energy consumption;
- Identify the period, level, and causes of peak energy demand for each building;
- Recommend controls and systems to reduce or redistribute peak energy consumption, and
- Estimate total energy and cost savings potential if all recommended upgrades are implemented, using software approved by the US Department of Energy.
Applicants may choose to work with an auditor from EMNRD’s pre-approved list of Energy Service Companies (ESCOs) or another auditor, or submit a qualifying energy audit completed after 2021. Businesses can also request a free energy audit from New Mexico State University.
What Retrofit Measures are Eligible?
Eligible energy efficiency retrofit measures include:
- Smart thermostats
- Heating, ventilation, and air conditioning (HVAC) upgrades
- Windows, doors, insulation, air sealing, and building envelope upgrades
- Lighting
- Roof repairs for energy efficiency purposes
- Solar and electric panel upgrades as part of a comprehensive energy efficiency project (not as standalone measures)
Frequently Asked Questions
Who is eligible to apply for an Energy Efficiency Revolving Loan Fund loan?
Nonprofit and for-profit businesses with commercial buildings used for community benefit are eligible for the Energy Efficiency Revolving Loan Fund. Community benefits may include healthcare, education, recreation, or cultural purposes, among other benefits. Applicants must also be able to demonstrate that more than half of their revenue is earned in New Mexico or more than half of their services are provided in New Mexico.
I’m a commercial building owner who can demonstrate my business provides a public benefit, and I’m interested in a loan. How do I get started?
A potential applicant should first fill out an interest form. EMNRD staff will then reach out within two business days of submission to discuss your interest in an energy efficiency project.
Pre-exists, I have already completed an audit on my building. What next?
If an applicant choses to submit a qualifying audit that pre-exists the Energy Efficiency Revolving Loan Fund, EMNRD staff will need to certify the audit, including the retrofit workplan. If certified, EMNRD staff will forward the applicant to the New Mexico Finance Authority (NMFA). The pre-existing audit must meet all of the minimum criteria listed above and must have been performed after May 20, 2021, and the building(s) must not have undergone an addition, renovation, or significant change in occupancy or function since the audit was performed.
Submit the Interest Form to EMNRD for review noting that you already have an audit, or email the audit directly to emnrd.ecmd@emnrd.nm.gov. EMNRD staff will review the audit and your project to check that it meets US DOE requirements. Please allow up to two weeks for review of the audit.
I have not completed an audit for my building. What should I do next?
You can review EMNRD’s list of pre-approved Energy Service Companies (ESCOs) and schedule a qualifying audit with an ESCO that fits the project. The pre-approved ESCO will conduct an investment grade audit that meets all US DOE requirements. EMNRD staff will certify the audit, including the retrofit workplan, and forward the applicant to NMFA for loan application. Alternatively, applicants may work with an energy auditor of their choosing, or businesses may contact New Mexico State University to inquire about free energy audits for locally owned businesses.
How do I pay for the audit?
Potential applicants may choose to pay for the audit up front or roll the cost of the audit into the total energy efficiency retrofit project.
My audit has been approved. What next?
Once the energy audit and workplan have been reviewed and approved by EMNRD, applicants will receive a loan application from NMFA. NMFA will review the loan application to determine if the entity meets the credit requirements of the program. If approved, the loan will go to closing, at which point applicants are free to contract with the ESCO who conducted the audit to complete the energy efficiency project.
What if I want to use my own contractor for the upgrades to my building?
Applicants may choose a preferred contractor to complete the energy efficiency upgrades instead of one that is recommended by the ESCO. However, EMNRD will need to vet and approve the contractor and ensure that they follow the prevailing wage requirements of the Energy Efficiency Revolving Loan Fund.
What documentation is needed to complete a loan application?
The loan application includes, but is not limited to, the following information:
- Organizational chart and description of management team and staffing.
- Composition and biographies of all governing board members.
- Certificate of good standing from the New Mexico Secretary of State, if applicable.
- Copies of applicant’s licenses and recent reports from all relevant regulatory bodies, if applicable.
- Copy of applicant’s Internal Revenue Service tax exempt determination letter, if applicable.
- Applicant’s audited financial reports for the most recent three years, or term of existence, and projected cash flows for at least three years.
- Any existing title insurance policies, title abstracts or searches of the real property owned by the applicant.
- Written assurance acceptable to NMFA that the applicant has proper title, easements, leases, and rights of way to the property upon which any facility proposed for funding is constructed or improved.
- Any additional information as requested by EMNRD or NMFA.
What are the requirements for retrofit measures?
- Measures must be recommended in the qualifying commercial energy audit for the building or facility.
- Recommendations must be lifecycle cost-effective: that is, the life of the product or service must not be shorter than the life of the loan.
- Retrofits must improve the building or facility in at least one of the following ways: physical comfort, energy efficiency, and/or indoor air quality.
- Retrofits must reduce the energy intensity of the building or facility and/or improve the control and management of the building’s or facility’s energy use to reduce demand during peak times.
What are the loan terms?
Loans of $250,000 to $1,000,000 are offered at a fixed interest rate of 2% over the useful life of the project (up to15 years). Borrowers must contribute at least 5% of the total project cost cash or in-kind.
Is new construction eligible for the Energy Efficiency Revolving Loan Fund?
No, only energy efficiency audits and retrofits of existing facilities are eligible for the Energy Efficiency Revolving Loan Fund. New construction projects may be eligible for the Sustainable Building Tax Credit.
Are local governments, public schools, and Nations, Tribes, or Pueblos eligible for the Energy Efficiency Revolving Loan Fund?
No, cities, counties, public schools, Nations, Tribes, and Pueblos are not eligible for the Energy Efficiency Revolving Loan Fund. However, those entities may be eligible for ECSO projects state tax credit, by filing a zero-income tax return. Contact an Energy Coach for details.