Loans for Energy Efficiency & Renewable Energy Projects – Cities and Villages

Energy projects may involve one or more of the activities listed below:

Energy Efficiency
• Lighting (e.g. fluorescent T8s/T5s, occupancy/motion sensors, etc.)
• Mechanical systems (i.e. heating, cooling and ventilation equipment)
• Water heating and pumping systems
• Advanced control systems
• Smart Metering systems
• Insulation, sealing, and other building envelope improvements
• Boiler or furnace replacement with a more efficient unit

Renewable Energy
• Solar Electricity/Photovoltaic
• Wind Turbine – 20 KW or smaller.
• Solar Thermal –20 KW or smaller.
• Solar Thermal Hot Water –
• Ground Source Heat Pump – 5.5 tons of capacity or smaller horizontal/vertical, ground, closed-loop system.
• Biomass Thermal

Other activities that meet the federal Department of Energy’s definition of energy efficiency and renewable energy will be considered. Impacted buildings or facilities must be currently occupied and have long range plans of continued use.

Projects must involve an activity and or installation or deployment of a commercially available and proven technology at buildings, facilities, and properties owned and operated by a city or village. Work already completed is ineligible.

Applicants can start work once the loan agreement is signed by DELEG. Only project-related costs that are incurred and paid for after DELEG’s loan execution may be included in the loan request. Applicants assume all financial risk should the DELEG not approve the application or if all loan documents are not executed. If the loan is not approved or executed, the DELEG is not responsible for reimbursement of any costs.

Please call for latest funding availability. Loan amounts will be between $100,000 and $2,500,000 and are limited to materials, supplies and equipment costs only.

This solicitation is open until September 30, 2011. Applications for funding will be reviewed by an evaluation committee, and awarded based on project merit and applicant creditworthiness. The DELEG reserves the right to close the solicitation period at any time.

Applicants must meet minimum credit standards determined by the DELEG Bureau of Energy Systems. Additional information may be requested during the negotiation process.
Interest on approved loans is fixed at 3% for a maximum of 6 years. For those projects with a pollution prevention component are eligible for a lower interest rate. Please contact DELEG for details. Only interest payments will be collected on disbursed loan funds for the first six (6) months starting from the closing date.
After the first six months, loan repayments are made in equal semi-annual installments of principal and interest concluding not later than 6 years after the agreement date.
There is no penalty for early repayment. A promissory note, loan agreement and security agreement are required to secure the loan. The security interest is limited to the materials, supplies and equipment purchased with loan funds. The funds are available on a reimbursement basis. Loan disbursements will be made upon the submission of the vendor’s invoice as well as the other required loan deliverables. Proof of payment is required within 30 days of each loan disbursement.

Loans for Energy Efficiency & Renewable Energy Projects – Cities and Villages

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