Solar & Battery Regulation & Incentive Programs

Farm and Aquaculture Alternative Energy Loan

Program Overview


Category:
Financial Incentive
Program Type:
Loan Program
Implementing Sector:
State
State:
Hawaii
Eligible Storage Technologies:
Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Wind (Small)
Website:
http://hdoa.hawaii.gov/agl/alternative-energy-loan-program/
Maximum Loan:
$1,500,000 or 85% percent of project costs, whichever is less
Loan Term:
3% interest rate for agriculture, 5% interest rate for aquaculture, 40-year term
Administrator:
Hawaii Department of Agriculture
Applicable Sectors:
Agricultural
Start Date:
07/01/2008
Last Updated:
07/15/2020
Funding Source
HI Department of Agriculture

Summary

In July 2008 Hawaii enacted legislation (HB 2261) which created a loan program for agriculture and aquaculture renewable energy projects. Farmers and aquaculturists may receive loans for projects involving photovoltaic (PV) energy, hydroelectric power, wind power generation, methane generation, bio-diesel and ethanol production. Loans may provide up to 85% of the project cost (up to a maximum of $1,500,000) for a term of up to forty years. To be eligible, the applicant must be a qualified farmer or aquaculturist with a sound credit rating and the ability to repay the loan, as determined by the Department of Agriculture.

These renewable energy loans fall into class "H" which carries a 3% interest rate for agriculture. The interest rate for aquaculture projects is 5%. If the money loaned is borrowed by the Department of Agriculture, the interest rate will be the greater of 3% for agriculture and 5% for aquaculture or 1% greater than the State’s cost of borrowing the money. The Department of Agriculture generally funds these loans using existing revolving loan funds rather than obtaining outside funding. These loans bear simple interest on the unpaid principal balance, charged on the actual amount disbursed to the borrower.


Authorities

NameEnacted DateEffective DateExpired Date
HB 22617/1/20087/1/2008
HRS § 155-8 et seq.7/1/2008