Local Government Energy Loan Program

March 10, 2023

Summary

*Note: The program is currently not accepting applications.

Through a public-private partnership with PowerSouth, Alabama's Local Government Energy Loan Program offers zero-interest loans to local governments, K-12 schools, and public colleges and universities for renewable energy systems and energy efficiency improvements that will eventually have a payback through utility savings. Under the program, municipal and county governments, and colleges and universities may borrow up to $350,000 for eligible projects, and K-12 schools may receive up to $350,000 per campus or $500,000 per school system for eligible projects. The minimum loan amount is $50,000. Eligible renewable energy resources generally include biomass, hydropower, geothermal energy, wind energy, and solar energy.

The application is available on the program website. An energy audit must be completed to identify necessary improvements. Following installation, the loan recipient must be benchmarked using the Energy Star Portfolio Manager program.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Alabama
Incentive Type:	Loan Program
Web Site:	https://adeca.alabama.gov/Divisions/energy/Local%20Gov%20Energy%20Loan%20Program/Forms/AllItems.aspx
Administrator:	Alabama Department of Economic and Community Affairs
Start Date:
Eligible Renewable/Other Technologies:	Solar - Passive Solar Water Heat Geothermal Electric Solar Photovoltaics Wind (All) Biomass Hydroelectric Geothermal Heat Pumps Combined Heat & Power Daylighting Lighting Chillers Furnaces Boilers Heat pumps Air conditioners Heat recovery Energy Mgmt. Systems/Building Controls Caulking/Weather-stripping Duct/Air sealing Building Insulation Windows Doors Siding Roofs Motors Motor VFDs Custom/Others pending approval Other EE Wind (Small) Hydroelectric (Small) Geothermal Direct-Use Other Distributed Generation Technologies
Maximum Loan:	$350,000 per local government or school campus; $500,000 per school system
Loan Term:	0% for up to 10 years, with a 3% management fee; estimated simple payback must be within 10 years

Contact

Name:	Karl Frost
Organization:	Energy Efficiency Unit Chief - Energy Divisio
Address:	401 Adams Avenue Montgomery AL 36104
Phone:	(334) 242-5322
Email:	Karl.Frost@adeca.alabama.gov

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.