| Program | LoanSTAR Revolving Loan Program |
|---|---|
| Category | Financial Incentive |
| Implementing sector | State |
| Last Update | |
| State | Texas |
| Administrator | Comptroller of Public Accounts State Energy Conservation Office (SECO) |
| Website | https://comptroller.texas.gov/programs/seco/funding/loanstar/ |
| Start Date | |
| Technologies | Solar - Passive, Solar Water Heat, Solar Space Heat, Solar Photovoltaics |
The Texas LoanSTAR (Saving Taxes and Resources) low-interest revolving loan program finances energy-related cost reduction retrofits for state, public school, college, university, and non-profit hospital facilities. Borrowers repay loans through the stream of cost savings realized from their energy cost-reduction projects. The LoanSTAR Program Administrator should be contacted for information on current loan interest rates.
As of September 1, 2023, LoanSTAR has funded over 337 loans totaling over $600 million.
Eligible Projects
Guidelines for project eligibility, fund availability and project funding and repayment are set forth in Comptroller rules ( 34 Tex Admin. Code 19.41-45)
Process
Each April and October, the State Energy Conservation Office (SECO) publishes a Notice of Loan Fund Availability and request for applications of LoanSTAR loans. The notice is published in the Texas Register, on the Comptroller’s website, and on the SECO Funding & Incentives webpage. Applications are scored by a review committee, with the highest scoring applicants receiving funding commitments first. Scoring is based largely on the following considerations.
- Information provided in the application including the application and one of the following: Engineering Assessment Report / Utility Assessment Report, Preliminary Energy Assessment, or Project Assessment Commitment;
- Location of proposed project; and
- Public access to the projects’ energy savings information.
Selected institutions will be asked to sign a Memorandum of Understanding (MOU) agreeing to complete and submit an Energy Assessment Report (EAR) or a Utility Assessment Report (UAR) within 120 days. With an executed MOU, SECO reserves funding for the institution.
SECO performs design review, design specification review, and on-site construction monitoring at 50% and 100% completion of each project phase. Repayment of the loans does not begin until after construction is 100% completed and it has been determined that the project was designed and constructed in accordance with the LoanSTAR Technical Guidelines.
More information, including project applications and a detailed program guidebook, are available on the program website above.
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