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State Energy Program (SEP)

Federal Agency


Office of Energy Efficiency & Renewable Energy (EERE)


To enhance energy security, advance state-led energy initiatives, and maximize the benefits of decreasing energy waste. SEP emphasizes the state’s role as the decision maker and administrator for program activities within the state that are tailored to their unique resources, delivery capacity, and energy goals.

Applicant and/or Project Eligibility Requirements

Eligibility for the award is restricted to states applying for formula grant financial assistance under SEP. Interested municipalities, local agencies, and non-profits should contact their state energy offices to learn more about how to access funding.

Decarbonization Considerations

This funding can be a catalytic force in developing enabling mechanisms that can drive decarbonization strategies and projects at the local level and across multiple sectors. Consider developing and implementing financing mechanisms for institutional retrofits; loan program and management; energy savings performance contracting; comprehensive residential programs for homeowners; transportation programs that accelerate the use of alternative fuels; and renewable programs that remove barriers and support supply-side and distributed renewable energy. Where appropriate, consider retrofitting existing facilities including schools that may be part of a community resiliency hub strategy to include efficiency, weatherization, and energy storage.

Equity Considerations

A broad range of health, housing, educational, and social services can be sought for marginalized communities. There is great potential to pursue energy justice by pursuing public education, participant inclusion, collaboration, and transparency in decision-making process; and retrofitting project/community solar to increase renewable energy and reduce burdens. The program can advance innovative initiatives that include scalable financing programs (e.g., Loan Loss Reserves, Revolving Loan Funds, and Interest Rate Buy-Down Programs) as well as emerging programs focused on equity and frontline community end-beneficiaries.

Helpful Tips

SEP Program Fact Sheet 2021:

Other Notes

$500,000,000 in funding available until expended. See FY23 allocations here:

Deadline (Announced or Anticipated)

FY23 funding has been distributed, check with your state office

Funding Available


Max Award Amount

Varies by state

Expected Allocations

Varies by state

Average Award (Estimated)


Matching Funds

20% cost share required

Go to Program Website