MONTGOMERY— A $25 million revolving loan program to be launched later this year will help Alabama businesses make upgrades that save energy and reduce operating expenses.
Gov. Bob Riley announced the state will establish the AlabamaSAVES (Sustainable and Verifiable Energy Savings) loan program in December. Low-interest-rate loans of $250,000 to $4 million will be available to help existing industrial and commercial businesses finance energy-saving improvements to their facilities.
“When Alabama companies become more efficient, they’re more successful. That means they’re able to grow and add more jobs,” Riley said. “By helping Alabama companies cut energy costs, AlabamaSAVES will make them more competitive and boost their opportunities to succeed.”
The program will be administered by the Alabama Department of Economic and Community Affairs with money made available by the U.S. Department of Energy as part of the American Recovery and Reinvestment Act of 2009.
ADECA’s Energy Division is currently conducting meetings and a demand analysis to ensure the loan program meets the needs of Alabama industry. Projects will be evaluated on potential for job creation and retention, energy savings, renewable energy generation capacity, emissions reductions, cost savings and sustainability. The program’s goal is 26 million British thermal units per year in energy savings for every $1,000 of loan funds invested, more than twice the recommended U.S. Department of Energy standard for this type of program.
Projects eligible for loans will include energy-efficient equipment upgrades including heating and air conditioning systems, windows and doors, electrical systems, water heating systems, lighting, energy management systems, and insulation. Renewable energy systems, such as those powered by biomass or solar energy, also are eligible. Loans can cover up to 90 percent of the total costs of a project. Borrowers will have up to 10 years to pay off the loan.
ADECA’s Energy Division is administering grants for 27 projects totaling $52 million as part of the State Energy Program. Other projects focus on reducing energy consumption in public school buildings, improving the energy efficiency of state prisons and offering training seminars for construction industry professionals.
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Contact: Mike Presley, Larry Childers