Through a public-private partnership with PowerSouth, Alabama's Local Government Energy Loan Program offers zero-interest loans to local governments, K-12 schools, and public colleges and universities for renewable energy systems and energy efficiency improvements that will eventually have a payback through utility savings. Under the program, municipal and county governments, and colleges and universities may borrow up to $350,000 for eligible projects, and K-12 schools may receive up to $350,000 per campus or $500,000 per school system for eligible projects. Eligible renewable energy resources generally include biomass, hydropower, geothermal energy, wind energy, and solar energy.
The application is available on the program web site. An energy audit must be completed to identify necessary improvements. Following installation, the loan recipient must be benchmarked using the Energy Star Portfolio Manager program.
Maximum Loan: $350,000 per local government or school campus; $500,000 per school system
Loan Term: 0% for up to 10 years, with a 3% management fee; estimated simple payback must be within 10 years