Solar & Battery Regulation & Incentive Programs

Agricultural Energy Loan Program

Program Overview


Category:
Financial Incentive
Program Type:
Loan Program
Implementing Sector:
State
State:
Vermont
Eligible Storage Technologies:
Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Combined Heat & Power, Landfill Gas, Equipment Insulation, Lighting, Lighting Controls/Sensors, Chillers, Furnaces, Boilers, Heat pumps, Air conditioners, Heat recovery, Steam-system upgrades, Compressed air, Programmable Thermostats, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Doors, Siding, Roofs, Agricultural Equipment, Geothermal Direct-Use, Anaerobic Digestion, Fuel Cells using Renewable Fuels, Reflective Roofs, LED Lighting
Website:
http://www.veda.org/financing-options/vermont-agricultural-financing/agricultural-energy-loan-program/
Maximum Loan:
$2,000,000
Loan Term:
Determined on a case-by-case basis; maximum term is 20 years
Interest Rate:
3.75% Variable or 5.25% Fixed for 5 years; then, adjusting to VACC Prime Rate plus .5% variable
Administrator:
Vermont Agricultural Credit Corporation (VACC)
Applicable Sectors:
Agricultural
Last Updated:
10/28/2016

Summary

The Agricultural Energy Loan Program (AELP), created through Act 87 in 2013, is administered by the Vermont Agricultural Credit Corporation (VACC). The AELP provides loans to agriculture- or forest product-based companies for renewable energy and energy efficiency projects. 

The maximum loan amount is $2,000,000, and the percent of the project funded by VACC is negotiable. Loans up to $350,000 can typically be approved internally, loans exceeding $350,000 are presented to the VACC Board monthly for consideration. Loans are provided at variable rates, although fixed rates may be available in some circumstances; current rates can be found here. Loan terms are determined on a case-by-case basis, with a maximum loan term of 20 years.

Fees associated with AELP loans include (1) a 0.5% commitment fee ($250 minimum and $2,500 maximum), (2) an Independent Engineer Review fee, (3) a $25 credit report fee, (4) an $18 flood insurance certification (if required), (5) an appraisal reimbursement (if applicable), and (6) document recording and discharge fees. There is no application fee associated with this loan.


Authorities

NameEnacted DateEffective DateExpired Date
10 V.S.A. § 280cc to § 280dd06/17/201306/17/2013