Municipal Lease

This finance initiative of the Efficiency Maine Green Bank is designed to help municipalities and schools afford the remaining project cost after an Efficiency Maine rebate. Participants can finance these co-pays through a non-debt finance vehicle known as a “municipal lease.” The Efficiency Maine Green Bank pairs Efficiency Maine program participants with private, Maine-based lenders that provide this type of financing.

What is a Municipal Lease?

A municipal lease, sometimes referred to as tax-exempt lease purchase (TELP), is a contract that allows an entity to obtain the use of (or to purchase) equipment. A municipal lease is an effective alternative to traditional debt financing (bonds, loans, etc.) because it allows a public organization to pay for energy upgrades by using money that is already set aside in its annual utility budget. Essentially, the lessee uses utility bill savings to pay for the financing costs. For more information on municipal leases, please click here.

Benefits of a Municipal Lease

  • Lowers the upfront cost of a project (typically to $0)
  • Spreads the costs of the project over several years
  • Provides an effective alternative to traditional debt financing (bonds, loans, etc.)
  • Can use existing utility budget
  • Leverages tax-exempt interest rates
  • Shortens timeline to close a project



  • Any Maine municipality or public pre-K − 12 school (or school district) under the Maine Department of Education.


  • Projects that have been preapproved through Efficiency Maine’s commercial programs.


The selected lease provider and the applying municipality or school will agree on the terms of each lease.

Application Process

Interested participants fill out the Efficiency Maine Green Bank’s online form to provide certain required intake information. This form also allows the applicant to request bids from multiple participating lenders that provide a municipal lease in the state of Maine. The lenders then follow up with the applicant to collect any additional information, if necessary, and to provide their competitive quotes. The applicant proceeds in contracting directly with their preferred lease provider.

Conditions for Application

  • The applying entity is a Maine municipality or public pre-K − 12 school (or school district) under the Maine Department of Education.
  • The applicant’s project has been preapproved through an Efficiency Maine commercial program (i.e., received a Commercial and Industrial Prescriptive Initiatives Preapproval Offer or Commercial and Industrial Custom Program award).
  • The applying entity agrees to share, upon request, certain financial information related to the municipal lease with Efficiency Maine, including but not limited to, the following:
    • the amount financed
    • the interest rate
    • the closing date

If your application satisfies these conditions and you wish to receive quotes from participating lease providers, please click the apply now button below.



Participating Lenders

Lender NameContact NameContact TitleContact PhoneContact EmailWebsite
Androscoggin BankJohn SimkoDirector of Government Banking(207) 330-0531Send EmailVisit Website
Gorham Savings BankRick ProctorVice President(207) 222-1498Send EmailVisit Website


Local Lender Participation

If your lending institution satisfies the conditions below and wishes to participate in the Efficiency Maine Green Bank municipal lease finance initiative, please click here.

To track updates to these finance initiatives, please subscribe to the “Green Bank News and Updates” list here.