Section 1703/1705 Loan Guarantee Program

Source: IEA/IRENA Renewables Policies Database
Last updated: 5 November 2017
The Loan Guarantee Program enables DOE to work with private companies and lenders to mitigate the financing risks associated with clean energy projects, and thereby encourage their development on a broader and much-needed scale. Under Section 1703 of the Energy Policy Act of 2005, DOE supports innovative clean energy technologies that are typically unable to obtain conventional private financing due to high technology risks. In addition, the technologies must avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases. Technologies include: biomass, hydrogen, solar, wind/hydropower, nuclear, advanced fossil energy coal, carbon sequestration practices/technologies, electricity delivery and energy reliability, alternative fuel vehicles, industrial energy efficiency projects, and pollution control equipment. The Section 1705 Loan Program (of the American Recovery and Reinvestment Act of 2009) authorizes loan guarantees for U.S.-based projects that commenced construction no later than September 30, 2011 and involve certain renewable energy systems, electric power transmission systems, and leading edge biofuels. The Section 1705 program expired in 2011 and projects that previously received loan guarantees are actively monitored but no longer issue new loan guarantees under the 1705 program. The 1703 program is still active.

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