Funding Energy Upgrades in Ohio Schools

What You Need to Know About the School Energy Performance Contracting Loan Fund

A new low-interest loan program helping Ohio K–12 schools invest in solar and energy-saving improvements

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Effective Aug 14 2025

House Bill 15: School Energy Performance Contracting Loan Fund

In 2025, the State of Ohio launched a new financing tool designed to help public schools invest in clean, energy-efficient technologies that reduce long-term utility costs and improve building performance. Known as the School Energy Performance Contracting Loan Fund, this program provides schools with access to low-interest loans that can be used for a wide range of energy conservation measures—including solar energy systems, high-efficiency HVAC equipment, building controls, insulation, LED lighting upgrades, and more.

The fund was established through House Bill 15 and is administered by the Ohio Facilities Construction Commission (OFCC). It serves as a dedicated resource to help schools overcome the financial barriers often associated with upfront capital investments in energy infrastructure. By offering structured, long-term repayment options, the program enables districts to make impactful upgrades today while paying for them over time using the savings generated by reduced energy consumption.

“The fund shall be used by the commission to provide loans to school districts…for the purchase and installation of energy conservation measures, including solar panels.”

Ohio HB15

Section 3318.67

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WHO CAN APPLY?

The program is open to the following Ohio public schools:

City school districts
Exempted village school districts
Local school districts
Joint vocational school districts

“Any city, exempted village, local, or joint vocational school district may apply.”
— HB15, 3318.67(B)

WHAT PROJECTS ARE ELIGIBLE?

Loan funds can be used for two main types of energy improvement contracts:

Energy Conservation Measure Installment Payment Contracts
These are agreements to purchase and install energy-saving equipment, paid for over time.
Shared-Savings Contracts
Agreements where repayments are tied to the actual energy cost savings generated by the upgrades.

“A loan issued…may be used to pay costs of either…a shared-savings contract or an installment payment contract entered into for the purchase and installation of energy conservation measures.”
— HB15, 3318.67(C)

Common qualifying projects include:

Solar PV systems
Building automation controls
Lighting retrofits
High-efficiency HVAC
Building envelope improvements (e.g., insulation, windows)

Loan Terms: What Schools Need to Know

The loan program offers simple, school-friendly repayment terms:

Interest Rate: 2% annual fixed
Repayment Period: Up to 10 years
Grace Period: Repayment begins 6 months after project completion

“The commission shall charge interest at a rate of two per cent per year. A loan shall be repaid in full not later than ten years…Loan repayment shall begin six months after the measures are completed.”
— HB15, 3318.67(E)

How Is This Funded?

The School Energy Loan Fund is supported through:

Transfers from Ohio’s Solar Generation Fund (since repealed)
Repayments from previous energy projects
Interest earned by the fund
Additional appropriations or grants

“Money credited to the fund shall consist of…interest earned, repayments of principal and interest, and money transferred from the solar generation fund.”
— HB15, 3318.671

Why Melink Solar?

As a nationally recognized Commercial Solar EPC with deep experience in Ohio’s education sector, Melink Solar can help your district:

• Understand the loan process and eligibility
• Design a solar or energy project that meets program requirements
• Maximize long-term energy savings while staying budget-friendly
• Navigate all local, state, and federal incentives and grants

Let’s Talk About Your School’s Energy Goals

Melink Solar has helped school districts across Ohio become more sustainable, energy-efficient, and financially resilient. If you’re considering solar or other energy-saving measures for your school, now is the time to explore this new financing opportunity.