Energy Efficiency and Renewable Energy Loan Program
The Pathway Lending Energy Efficiency Loan Program (EELP), a low-interest revolving loan fund, launched in 2010 to assist Tennessee for-profit and not-for-profit commercial and industrial businesses in implementing energy efficiency and renewable energy improvements. In January 2016, EELP was expanded to offer financing to local government entities, including municipalities, counties, school districts, and other public agencies. Pathway Lending, a US Treasury certified community development financial institution, oversees the $29 million revolving loan fund, which is comprised of loan capital provided by the State / TDEC Office of Energy Programs ($14 million), the Tennessee Valley Authority ($10 million), and Pathway Lending ($5 million). Eligible projects under EELP include, but are not limited to: energy efficient equipment upgrades; lighting; building envelope retrofits; cool roofs; renewable energy installations; and co-generation.
At this time, five-year term Energy Efficiency loans have a fixed interest rate of 2%, and ten-year term Renewable Energy loans have a fixed interest rate of 5%. Local government entities are currently eligible to receive up to six years of financing at a 2% interest rate for qualified energy efficiency and renewable energy projects. Qualifying entities may apply for loans between $20,000 and $5 million.
Pathway Lending maintains a series of EELP success stories on its Energy Efficiency Blog series, some of which are highlighted below.
Knoxville Racquet ClubThe Knoxville Racquet Club leveraged EELP to upgrade its outdoor racquet court lighting systems with LEDs. The Club is projected to save 400,000 kWh and $40,000 in energy costs each year as a result of the upgrade.
Crown CollegeCrown College in East Tennessee leveraged EELP to replace interior and exterior lighting, install water conservation measures, upgrade the HVAC, and enhance the building’s energy control systems.
Bell Mill MansionThe Bell Mill Mansion in Chattanooga received financing for a 100 kW solar system, which is expected to produce 139,700 kWh and save $15,902 in energy costs annually.
Christ Presbyterian AcademyChrist Presbyterian Academy in Nashville received a loan from EELP to replace more than 4,000 lightbulbs across their campus, which is expected to save $60,000 in energy costs each year.
Urban Story VenturesUrban Story Ventures utilized EELP to finance energy efficiency projects in four iconic Chattanooga properties. Following equipment upgrades and retrofits, these buildings are now consuming up to 48% less energy on an annual basis.
Urban Story Ventures photo, “Central Plant,” and Crown College photo, “Energy Audit,” by Dennis Schroeder, NREL. All other photos courtesy of TDEC OEP staff, Pixabay.com, or Piktochart.com.