Financing School Sustainability

Revolving Green Funds

A Revolving Green Fund (RGF) is a self-sustaining funding mechanism that helps schools invest in sustainability projects—like energy efficiency upgrades or water conservation—without requiring new budget allocations each year. Here’s how it works:


→ The school makes an initial investment in a green project

→ That project generates cost savings (e.g., lower utility bills)

→ A portion (or all) of the savings is returned to the fund

→ The fund is then used for future projects—so the cycle continues!

Why Use One?
RGFs create a continuous loop of funding that grows your school’s sustainability impact over time. They help overcome the “we don’t have the budget” barrier and foster a culture of long-term thinking and accountability.

How Revolving Green Funds Typically Work

  • Seed Funding: Initial funds can come from the school budget, grants, community fundraising, or donors.

  • Project Selection: Schools choose projects with measurable savings—like LED lighting retrofits or solar panel installations.

  • Tracking Savings: Savings are tracked (e.g., via utility bills or energy dashboards, such as START) to determine how much is returned to the fund.

  • Reinvestment: Funds are reinvested into new green projects, from composting systems to HVAC upgrades.

A “paid-from-savings” approach can help overcome the barrier of financing or paying for a sustainability project.

Cost-saving sustainability projects: ideal candidates for funding through a Revolving Green Fund:

Tips to Get One Started

  • Start small and scale: Build the case by identifying 1-2 projects with strong cost-saving potential and quick payback (e.g., LED lighting or smart thermostats). Estimate savings using past utility bills or simple online calculators (many utilities offer these) and show how savings from these projects could be tracked and reinvested.

  • Secure seed funding: Possible sources include utility rebates & incentives, one-time budget allocation, grants, PTA or Green Team Fundraising, alumni donations.

  • Involve students: Student Green Teams or business classes can help track savings and pitch projects.

  • Build accountability: Assign a team or coordinator to manage the fund and reporting.

  • Communicate impact: Share results with your school community to build buy-in and momentum.

Key resources:

Did you know…

You can track and visualize your energy, waste and water consumption, and their associated costs, in START: Sustainability Tracking, Analytics & Roadmap Tool.