About the Program
The IIJA provided $250M for states to establish revolving loan fund (RLF) capitalization grant programs for the purposes of energy efficiency. Indiana received $9.9 million and established the Indiana Energy Efficiency Fund (IEEF) to provide loans and grants for commercial and residential energy audits, upgrades, and retrofits. This funding aims to increase energy efficiency, physical comfort, and air quality of existing building infrastructure. Under this U.S. Department of Energy Formula Program, OED will administer Indiana's allocation of approximately 65% for loans and 25% for grants.
The IEEF will partner with financial institutions to make energy efficiency improvements throughout the state. Through a co-lending approach, private capital will be leveraged with public capital to enhance the amount of funding available at lower interest rates. This partnership collaboration with banks and lenders will create opportunities for Hoosiers and businesses to achieve 25 to 35% cost savings compared to traditional market rates.
Benefits
The IEEF offers a range of benefits to those who participate, including:
- Save money through reduced energy consumption which reduces energy costs and bills,
- Low-interest loans for individuals and businesses, and
- Reduce upfront costs for infrastructure improvements, which can be especially helpful for those who struggle to obtain low-cost financing.
Next Steps
OED is in the process of developing this program to offer funding to eligible Hoosiers and businesses. OED is taking a phased approach to launch statewide, which includes establishing partnerships with financial institutions and building out the state processes required prior to issuing loan and grant funds.
Indiana's Energy Efficient Fund Strategy
OED uses the five pillars of electricity policy, as codified in Indiana law: affordability, reliability, resiliency, stability, and environmental sustainability, in the development and implementation of grant programs. Energy efficiency supports the five pillars in multiple ways, including maintaining affordability through reducing energy consumption, increasing reliability, resiliency, and stability by reducing demands placed on the electric grid, and providing environmental benefits. The Indiana Energy Efficiency Fund also includes consideration for disadvantaged communities and applications that improve outcomes specifically for disadvantaged communities are strongly encouraged.
Questions?
Please contact mkelleher@oed.in.gov for any IEEF specific questions.