Local Option - Financing Program for Renewable Energy and Energy Efficiency

July 22, 2022

Summary

North Carolina enacted legislation (H.B. 1389) in August 2009 that authorizes cities and counties to establish revolving loan programs to finance renewable energy and energy efficiency projects that are permanently affixed to residential, commercial or other real property. A revolving loan program generally refers to a loan fund, where the loan repayments and interest are fed back into the fund. In this way, the loan can, in theory, continue indefinitely. HB 1389 allows cities and counties to fund their loan programs through Energy Efficiency and Conservation Block Grants from the federal government and the city's or county's unrestricted revenue. By law, the resulting loan programs may not charge more than 8% interest, and loan terms are limited to 20 years.

H.B. 1829 of 2010 expanded the authority of cities and counties to promote renewable energy and energy efficiency. Cities and counties are still free to provide revolving loan programs, but they can also establish loan loss reserve funds to assist in the financing of eligible projects, or other types of finance programs funded through federal and state grants or their own general revenue.

Contact your local government to find out if it offers financing for renewable energy and/or energy efficiency through this option.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	North Carolina
Incentive Type:	Loan Program
Web Site:
Administrator:
Start Date:	8/26/2009
Eligible Renewable/Other Technologies:	Solar Water Heat Solar Space Heat Geothermal Electric Solar Thermal Electric Solar Thermal Process Heat Solar Photovoltaics Wind (All) Biomass Hydrogen Combined Heat & Power Landfill Gas Tidal Wave Yes; specific technologies not identified Wind (Small) Hydroelectric (Small) Anaerobic Digestion
Loan Term:	May not exceed 20 years
Interest Rate:	May not exceed 8%

Authorities

Name:	N.C. Gen. Stat. § 153A-455
Date Enacted:	08/26/2009
Effective Date:	08/26/2009

Name:	N.C. Gen. Stat. § 160A-459.1
Date Enacted:	08/26/2009
Effective Date:	08/26/2009

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.