Solar & Battery Regulation & Incentive Programs

AlabamaSAVES Revolving Loan Program

Program Overview


Category:
Financial Incentive
Program Type:
Loan Program
Implementing Sector:
State
State:
Alabama
Eligible Storage Technologies:
Solar Water Heat, Geothermal Electric, Solar Photovoltaics, Biomass, Hydroelectric, Combined Heat & Power, Water Heaters, Lighting, Lighting Controls/Sensors, Steam-system upgrades, Energy Mgmt. Systems/Building Controls, Building Insulation, Windows, Doors, Other EE, Hydroelectric (Small), Fuel Cells using Renewable Fuels, LED Lighting, Commercial Refrigeration Equipment
Website:
http://www.alabamasaves.com/
Maximum Loan:
Maximum Loan: $4,000,000 (Program Participating Amount: $1,000,000)
Loan Term:
Loan Length: 10 year maximum
Program Origination Fee: 2% and reasonable and customary costs from a participating lender partner. Origination fees are subject to a minimum of $2,000.
Interest Rate:
Participating Interest Rate: 2% discount off private lender rate
Administrator:
Abundant Power
Applicable Sectors:
Commercial, Industrial, Institutional
Budget :
$15,500,000
Last Updated:
05/03/2017
Funding Source
American Recovery and Reinvestment Act (ARRA); Additional funding from private lenders

Summary

The Alabama Department of Economic and Community Affairs (ADECA) offers an energy efficiency and renewable energy participating loan program called AlabamaSAVES. The Program funds subordinated participating interests in qualified third-party loans used to finance energy projects at existing commercial, industrial and non-profit businesses in Alabama. The Participating Interest can be for 100% of the cost of the eligible project or 25% of the Participating Loan up to the cost of the eligible project, whichever is less.A variety of technologies are eligible; see the program technical guide for full details.

In order to apply, interested parties must first contact an AlabamaSAVES representative. Before funding is awarded, an energy assessment, defining the project and estimated energy savings impact, must be submitted and reviewed to ensure a simple payback of 10 years or better or measures “above and beyond” current Alabama code

The program operates as a revolving loan program where the fund is replenished by interest and principal repayments made on prior loans. The fund was initially capitalized with American Recovery and Reinvestment Act (ARRA) funding. Please see the program web site for additional information and program materials.