Incentives/Policies for Renewables & Efficiency
Last DSIRE Review: 03/14/2013
||State Loan Program
|Eligible Efficiency Technologies:
||Lighting, Heat pumps, Central Air conditioners, CHP/Cogeneration, Processing and Manufacturing Equipment, Comprehensive Measures/Whole Building, Custom/Others pending approval
|Eligible Renewable/Other Technologies:
||Custom Renewable Energy, Custom Co-Generation
||Commercial, Industrial, Nonprofit
|Amount:||$20,000 - $5 million|
Shared Savings Option: retain up to 50% of monthly energy savings, pay loan with remainder.
|Maximum Incentive:||$5 million|
100% of cost
|Terms:||Interest Rate: 2% fixed up to 5 year term; 5% fixed for 5-10 year terms|
Repayment up to 10 years
All loan costs may be financed; no prepayment penalty.
Loan recipients must complete a vendor proposal with detailed project energy savings.
|Funding Source:||State of Tennessee, U.S. Department of Energy, U.S. Economic Development Administration, Pathway Lending, Pinnacle Financial Partners and the Tennessee Valley Authority|
|Program Budget:||$50 million|
Based on a U.S. Department of Energy Industrial Loan program, Pathway Lending's Energy Efficiency Loan Program provides Tennessee business and non-profit entities with below-market loans for energy efficiency and renewable energy improvements. The shared savings option allows organizations to pay off the loan over a 10-year period with 50% of the money going to renewable energy and energy efficiency projects, while retaining the remaining 50% through energy savings to pay off the loan (most common for projects with a two-year simple payback and a four-year loan term). All costs related to the efficiency measures may be financed, including loan fees, assessments, design, equipment and installation. The amount of savings achieved monthly through energy use reduction determines the monthly payments for the loan as long as payments do not exceed 10 years.
Pathway Lending is currently working with the following city and county governments to provide these low interest loans*:
- Memphis/Shelby County
- Knoxville/Knox County
- Nashville/Davidson County
All required documents for applications and reports are available on the Pathway Lending web site.
*Additional communities are encouraged to participate in the program. For more information, please contact Pathway Lending.
Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.
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