U.S. Department of Energy - Loan Guarantee Program

Last updated: July 19, 2019

Program Overview

Implementing Sector:Federal
Category:Financial Incentive
Incentive Type:Loan Program
Web Site:http://energy.gov/lpo/loan-programs-office
Administrator:U.S. Department of Energy
Eligible Renewable/Other Technologies:Geothermal Electric, Solar Thermal Electric, Solar Thermal Process Heat, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Fuel Cells using Non-Renewable Fuels, Landfill Gas, Tidal, Wave, Ocean Thermal, Daylighting, Fuel Cells using Renewable Fuels
Eligible Efficiency Technologies:Yes; specific technologies not identified
Maximum Loan:Not specified
Loan Term:Full repayment is required over a period not to exceed the lesser of 30 years or 90% of the projected useful life of the physical asset to be financed


Name:42 USC § 16511 et seq.
Name:10 CFR 609


Note: President Obama and DOE issued new supplemental guidance for Renewable Energy and Efficient Energy (REEE) Projects that adds $500 million of loan guarantee authority, making the total available approximately $4.5 billion. It also released guidance to clarify the types of Distributed Energy Projects it can support under the Title XVII program. The additional loan guarantee authority was officially available as of October 2015.

Section 1703 of Title XVII of the Energy Policy Act (EPAct) of 2005 created the Department of Energy's (DOE's) Loan Guarantee Program. The program was reauthorized and revised by the American Recovery and Reinvestment Act (ARRA) of 2009 by adding Section 1705 to EPAct. The 1705 Program was retired in September 2011, and Loan Guarantees are no longer available under that authority. DOE, however, still has authority to issue Loan Guarantees under the old Section 1703 Program.  

Under Section 1703, DOE is authorized to issue loan guarantees for projects with high technology risks that "avoid, reduce or sequester air pollutants or anthropogenic emissions of greenhouse gases; and employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued." Loan guarantees are intended to encourage early commercial use of new or significantly improved technologies in energy projects. The loan guarantee program generally does not support research and development projects.

Loan guarantees are provided in response to open solicitations. The application is a two part process; applicants that meet the specified requirements laid out in Part I receive an invitation to submit a Part II application. The updated supplemental guidance for Renewable Energy Projects and Energy Efficiency Projects includes an application solicitation schedule, with final Part I and Part II application due dates to November 30, 2016 (extended in a Fifth Supplement released June 2016). Up to $3 billion is available in loan guarantees for projects in renewable energy, efficient end-use, and efficient generation, transmission, and distribution technologies (plus an additional amount that may be imputed based on the credit subsidy cost of the loan guarantee authority). See the program website for more details on eligibility and the application process. 

Section 1703 requires either an appropriation to cover the Credit Subsidy Cost (the expected long term liability to the Federal Government for providing the loan guarantee), or payment of the Credit Subsidy Cost by the borrower. A credit-based interest rate spread will be added to certain loans receiving a 100% loan guarantee from DOE and financing from the Federal Financing Bank. Rates and more information are available here.

Find out how affordable solar energy can be with the HahaSmart Price Checker.

Design your own solar panel array with the HahaSmart DIY Design Tool

Solar system price checker

Design Your Solar Home


Market Trend

12 3

Input your address to see if it is solar friendly and how much you can save with solar.

Great. Your address is perfect for solar. Solar incentive is still available. Select monthly utility cost and calculate the size of solar system you will need now.

Whoa ! Going solar is definitely a smart decision.

kw System size years Payback period Lifetime savings

No money down, 100% finance is available.

Get a Low Cost Solar System for Your Home

Do not show this information again.