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Grants to Alabama Nonprofits, Agencies, and Public School Systems to Increase Energy Efficiency

State Energy Program (SEP) - Energy-Efficient Retrofits


GrantWatch ID#

Funding Source
Alabama Department of Economic and Community Affairs (ADECA)
Energy Division
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Geographic Focus
USA: Alabama

Important Dates
Conference Date: 12/07/23
Deadline: 01/26/24 11:59 PM CST Save

Grant Description
Grants of up to $40,000 to Alabama nonprofit organizations, local government units, and K-12 public school systems for capital improvements that increase energy efficiency. Applicants are advised to complete required registrations before the application deadline. Funding is intended to reduce statewide energy consumption. Eligible projects include energy-efficient lighting, HVAC replacement, thermostats, and photovoltaic and solar systems.

The SEP is a formula grant used to reduce energy consumption in Alabama. The Energy Division is accepting applications for grants to be used for the purchase and installation of energy-efficient improvements.

Eligible Measures:

  • Energy-efficient lighting
  • HVAC Replacement
  • Programmable Thermostats
  • Photovoltaic Systems
    • Must be on existing Rooftops and Parking Shade Structures or;
    • A ≤ 60 KW system unit installed on the ground within the boundaries of an existing facility.
  • Solar Thermal Systems must be ≤ 20 KW


Additional Eligibility Criteria
Eligible applicants include the following entities that are located in the State of Alabama:
- Incorporated units of local government (municipalities and counties)
- Public K-12 school systems
- Non-profit organizations

A non-profit organization is an organization that uses its surplus revenues to further achieve its purpose or mission, rather than distributing its surplus income to the organization’s directors (or equivalents) as profit or dividends. Applicants must have the status of a 501(c) organization and be tax-exempt in order to apply.

Ineligible Measures:
- Energy-efficient windows and doors
- Photovoltaic Systems outside the boundaries of an existing facility
- Solar Thermal Systems over 20 KW

SEP regulation 10 CFR Part 420 -- State Energy Program does not allow expenditures or matching contributions for the following:
- For construction or repair of buildings and structures;
- To purchase land, a building or structure;
- To subsidize fares for public transportation;
- To subsidize utility rate demonstration or state tax credits; or
- To conduct or purchase equipment to conduct research, development, or demonstration.

Pre-Proposal Conference
The Alabama Department of Economic and Community Affairs – Energy Division will be hosting the State Energy Program grant application workshop on December 7, 2023.

Pre-Application Information
Applications shall be submitted via email by 11:59 PM, CST on January 26, 2024.

Applicants are strongly encouraged to submit applications in advance of the deadline.

Applicants must obtain a Unique Entity ID (UEI) and maintain an active registration in the System for Award Management (SAM) at

All subrecipients must register in the State of Alabama Accounting and Resource System (STAARS) Vendor Self Service (VSS) portal in order to receive payment.

No matching contributions are required. However, an applicant can earn up to five additional points on their rating score for match provided.

Payments may be made on a reimbursement basis or an advance basis.

State Energy Program grant application workshop video:

Additional Funding Information

Estimated Total Program Funding:


Estimated Size of Grant
Minimum Award: $10,000 per applicant
Maximum Award: $40,000 per applicant

Term of Contract
Projects must be completed within 7 months of the effective date of the grant agreement. The Energy Division anticipates awarding grants to begin on March 1, 2024, and to terminate no later than September 30, 2024.

Contact Information
Submit applications in PDF format to

Questions pertaining to this Grant Application and Guide may be submitted in writing to the email address above.

Physical Address:
Alabama Department of Economic and Community Affairs
401 Adams Avenue
Montgomery, Alabama 36104

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