Commercial Energy Efficiency Loan Program (Tennessee)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Commercial Energy Efficiency Loan Program|
|Incentive Type||State Loan Program|
|Applicable Sector||Commercial, Industrial, Nonprofit|
|Eligible Technologies||Central Air conditioners, Comprehensive Measures/Whole Building, Custom/Others pending approval, Heat pumps, Lighting, Processing and Manufacturing Equipment, CHP/Cogeneration, Custom Renewable Energy, Custom Co-Generation|
|Energy Category||Energy Efficiency Incentive Programs, Renewable Energy Incentive Programs|
|Amount|| $20,000 - $5 million|
Shared Savings Option: retain up to 50% of monthly energy savings, pay loan with remainder.
|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|
|Maximum Incentive|| $5 million|
100% of cost
|Program Budget||$50 million|
|Terms|| Interest Rate: 2% fixed up to 5 year term; 5% fixed for 5-10 year terms|
Repayment up to 10 years
|Program Administrator||Pathway Lending Community Development Financial Institution|
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.
|Contact Name||Pathway Lending|
|Department||Tennessee Department of Economic and Community Development|
|Address||201 Venture Circle|
|Phone 2||(615) 425-7171|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.