Title 17 Clean Energy Financing – State Energy Financing Institution (SEFI)-Supported Projects

Financing for projects that align with state clean energy priorities  



Through the State Energy Financing Institution (SEFI)-Supported category of the Title 17 Clean Energy Financing Program, LPO can augment state-administered clean energy programs, providing additional financial support to projects that align federal energy priorities with those of U.S. states. SEFI-Supported projects do not have a technology innovation requirement, so the authority expands eligibility for LPO financing to include certain projects that incorporate commercial technologies or aggregate technology-diverse projects and that receive meaningful financial support or credit enhancements from a SEFI.  


Defining SEFIs and SEFI Support

A SEFI is an entity established by a state, Indian Tribal entity, or Alaska Native Corporation to provide financing support or credit enhancements for eligible clean energy projects and to take steps to reduce financial barriers to the deployment of eligible clean energy projects. City and county agencies will generally not qualify as SEFIs.

Examples of qualifying project participation by a SEFI may include, but are not limited to:  

  • Providing equity/subordinate portion of capital stack   
  • Providing loan loss reserve with respect to junior portion of capital stack ​  
  • Co-lending with LPO (pari passu or mezzanine)​  
  • Providing financial backstop for specific key project elements that may be subject to regulatory or local market risk​  

Statewide policies, such as Renewable Portfolio Standards (RPS) typically will not constitute meaningful SEFI support for a project.

Federal Support Restriction: SEFI-Supported projects may not utilize federally appropriated funds for the repayment of a loan guaranteed by LPO, but the fact that a SEFI receives federal support at an organizational level or for unrelated projects may not disqualify the proposed project so long as the federal funding does not directly or indirectly support the proposed project.



In addition to the common eligibility requirements that apply to all Title 17 Clean Energy Financing projects, SEFI-Supported projects must meet several additional eligibility criteria. 

  • SEFI-Supported projects must align with one of the following eligible technologies:  
  1. Renewable energy systems  
  2. Advanced fossil energy technology  
  3. Hydrogen fuel cell technology  
  4. Advanced nuclear energy  
  5. Carbon capture and sequestration technologies  
  6. Efficient electrical generation, transmission, and distribution  
  7. Efficient end-use energy technologies
  8. Production facilities for the manufacture of fuel-efficient vehicles or parts of those vehicles   
  9. Pollution control equipment  
  10. Oil refineries  
  11. Energy storage technologies  
  12. Industrial decarbonization technologies  
  13. Supply of critical minerals
  • SEFI-Supported projects must receive meaningful financial support or credit enhancements from a SEFI.


Possible State Energy Financing Institution-Supported Project Areas

A wide range of clean energy projects may qualify for LPO financing through the SEFI-Supported category. The following is a set of project types that could be eligible, subject to LPO review. These examples are neither exhaustive nor limiting.

  • SEFI-supported energy efficiency upgrades and electrification of single-family residences
  • SEFI-supported community solar projects
  • SEFI-supported facilities related to decarbonized industrial products
  • SEFI-supported construction of high-quality, energy-efficient, housing
  • SEFI-supported financing of energy efficient and grid-interactive appliances

Additional program details and application requirements are described in the Title 17 Clean Energy Financing Program Guidance and on the Title 17 Overview web page.


Next Steps

If you have a project that may be eligible for financing through the SEFI-Supported project category, please request a no-cost pre-application consultation. You can also access the SEFI Toolkit for additional guidance.