AlabamaSAVES (Sustainable and Verifiable Energy Savings), a $60 million revolving loan program, will be a new tool to help Alabama businesses make upgrades that save energy, reduce operating expenses, and create work for state residents. Two-percent 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. The energy savings generated by the improvements will be greater than loan repayments, meaning extra cash flow to help businesses remain competitive, retain workers, and possibly create new jobs.
Projects eligible for loans include upgrades to energy-efficient equipment, such as heating and air-conditioning systems, windows and doors, electrical systems, water heating systems, energy management systems, lighting, and insulation. Installation of renewable energy systems, such as those powered by biomass or solar energy, also are eligible. Projects will be evaluated on potential for job creation and retention, sustainable energy savings, cost savings, renewable energy generation capacity, emissions, reductions.
Loans can cover up to 90% of the total costs of a project, and borrowers will have up to 10 years to repay. As loans are paid, the fund will be replenished and available to finance future projects.