Energy Efficiency Loan Program
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Transcript of Energy Efficiency Loan Program
Overview:
Pathway Lending is a Private, Non-Profit Economic Development Lender certified by the U.S. Department of Treasury.
Founded: 1999
Mission: Providing underserved small businesses with lending solutions and educational services that result in job creation and economic development.
Why Energy Efficiency?
• Peers: From industrial giants to the shop next door, business owners are getting on board with energy efficiency. It’s the best way to save money, reduce risk, and maintain a competitive edge.
• Profits: Studies show that every $1 spent on energy efficiency projects yields $2.84 over the life of the project.
• Planet: Technological advances can improve building efficiency by as much as 30%-60%, resulting in lower utility bills and reduced environmental impacts without sacrificing quality or comfort.
• People: People prefer to work in energy efficient buildings. Studies show that productivity increases by 3%-5% and sick days decrease by 20%-25% when energy efficiency measures are implemented.
Energy Efficiency Loan Fund Basics:
Our Partners:
Energy Efficiency Loan Fund Basics:
• What: A low-interest, revolving loan fund to finance energy efficiency and renewable energy projects in Tennessee.
• Target Markets: Industrial, Commercial, and Private Non-Profit facilities located in the state of Tennessee.
• Projects: Any investment in a fixed asset that provides significant reductions in energy, emissions, and/or utility consumption.
Energy Efficiency Loan Fund Basics:
• Loan Amount:
Range from $20,000 - $5,000,000
• Program Features:
– 2% Financing for Energy Efficiency Project Bundles
– 5% fixed for up to 10 years for Renewables
– Up to 100% Project Financing:
• Assessment, engineering, purchase and installation costs
What Are Energy Efficiency Projects?
• HVAC • High Efficiency Lighting • Heat Conserving Windows • Water Saving Plumbing • Energy Management Systems • Reflective/Cool Roofs • Production Equipment Replacement • Food Service & Laundry Service Upgrades • Building Envelope Improvements • Renewables • ESCO identified projects
Application Considerations:
• Financial Test: Can the company repay the loan, even if no savings occur? What do the last 2 years financials look like?
• Energy Savings Test: Does the company have a complete assessment, audit, or vendor proposal detailing project cost and energy savings? Can the savings repay the loan within 10 years?
• Job Creation/Retention Test: How many jobs will be retained and/or created due to the savings generated by this project?
Energy Efficiency is a Profit Center:
Manufacturing Averages:
•Energy averages 9% according to Manufacturing Institute
•Annual profitability: 5% - 10%
Example:
Company with $10 million in sales
•$900,000 annual energy costs
•$700,000 average profitability
•25% energy cost reduction = $225,000 to the bottom line
Success Story: Eco Travel Plaza “We use a lot of electricity and we wanted to do more. But we didn't have room on our site for more solar panels or wind, so we couldn't produce more energy. We decided to cut what we use.” – Don Demko, Owner
Solar Panels, Lighting & HVAC Upgrades
Eco Travel Plaza in Crossville, Tennessee aims to be the most eco-friendly truck plaza in the country. With a Pathway Lending Energy Efficiency loan, the business was able to implement LED lighting, efficient HVAC, Electric Charging Stations and Solar projects to achieve this goal.
• 2 projects – Total Cost: $300,000 • Annual Energy Reduction: 131,202 kWh • Annual Energy Generation: 48,174 kWh • Annual Cost Savings: $29,634
Success Story: Manufacturer Industrial Group “It is like the difference between night and day, I highly recommend it.
Along with the energy improvements, the new lighting also provides a
better environment for employees.” – Andre Gist, CEO
Energy Efficient Lighting Installation
Manufacturers Industrial Group, LLC received
a complete facilities audit, which reviewed
lighting, wiring, air hoses, power outlets and
other areas. The lighting retrofit is forecasted
to pay for itself in approximately two years.
• Total Project Cost:
$215,000
• 1st Year Energy Reduction: 671,768 kWh
• 1st Year Cost Savings: $69,228
Success Story: Fairlawns Building
The Fairlawns Building is a commercial office building in Brentwood, Tennessee. Using a Pathway Lending Energy Efficiency loan, building management replaced a cooling tower then later replaced evaporator coils.
• Total Project Cost: $69,000 • Annual Energy Reduction: 98,892 kWh • Annual Cost Savings: $9,889
HVAC Upgrades
Success Story: Holiday Inn
Water Heaters, Equipment, and Lighting Upgrades
Holiday Inn World’s Fair Park in Knoxville, Tennessee used a Pathway Lending Energy Efficiency loan to purchase high efficiency water heaters and clothes dryers. Financing was also used to retrofit parking garage lights.
• Total Project Cost: $343,000 • Annual Energy Reduction: 450,532 kWh • Annual Cost Savings: $45,053
Discussion – Solar Deployment
• 15 Solar Projects since Program Inception
• Cost per watt has dropped from $6.50 to $2.81 (57% decrease)
• 7 Projects in 2011 when both Federal (U.S. Treasury & REAP) and State (TSI) grants were available.
• 2 Projects in 2012 when only Federal tax credit was available. These projects did not reflect standard retail pricing. Both were self-installed.
• 3 Projects in 2013 demonstrate market momentum at lower market pricing per watt.
• Shaded projects were non-traditional installations
Sustainable Communities Initiative
• Launched November 2012 [Insert Logo]
• Alliances with Offices of Sustainability in:
– Memphis & Shelby County
– Metropolitan Nashville
– City of Knoxville and Knox County
• $10 million commitment from EELP to these communities
• Way to instill a spirit of competition and create an opportunity for recognition of successful projects.
Support Governor Haslam’s Jobs4TN plan by enhancing opportunities for industrial
energy efficiency and combined heat and power through participation in the NGA
Policy Academy
Project Mission
TN Team Overview
Participating Organizations:
• TDEC Office of Energy Programs
• TDEC Office of Sustainable Practices
• Pathway Lending
• Tennessee 3-Star Industrial Assessment Center at TN Tech
• Tennessee Valley Authority
• Industrial Energy Efficiency Network Program
• BLT Sustainable Energy, Inc.
• NGA Center for Best Practices
• Increase competitiveness and productivity of existing TN business through enhanced IEE and increased deployment of CHP
• Provide key industry clusters with tools and expertise necessary for them to evaluate IEE and CHP opportunities
• Create a forum to foster dialogue between utilities, State regulators and policymakers, private investors, industry members, and technical experts from IACs to work toward reducing regulatory and market barriers to IEE and CHP
Project Goals
Continued…
• Promote innovative partnerships and peer-to-peer information sharing platforms
• Leverage expertise of the State Team to develop a State plan to enhance existing IEE and CHP programs in the State and inform development of future State IEE and CHP programs
Project Goals
The Tennessee Department of Environment and Conservation through its Office of Energy Programs is proud to launch a new Energy Education Initiative which will be delivered in conjunction with Pathway Lending and other statewide energy resource providers. This Initiative provides in depth training along with educational tools to support the implementation of energy efficiency, renewable energy and energy management projects.
Funding for the Energy Education Initiative is provided by the Department of Energy through the American Reinvestment and Recovery Act. As a result, the program will be able to provide “tuition paid” workshops and conferences at many locations throughout the state over the next several months. Some will focus on very specific topics such as multi-family housing or industrial energy efficiency while others will have a broader approach to Sustainability. At each of these events, the presentations and materials will be recorded and made available for all Tennessee companies to access through an Online Resource Center to launch later in the year.
Tennessee Energy Education Initiative
Acknowledgment: This project is funded under an agreement with the State of Tennessee.
This material is based upon work supported by the Department of Energy under Award Number DE-EE0000160. CFDA 81.041.
Date Event City
10-Apr & 11-Apr TN Solar Summit: Moving the Region's Solar Power Forward Chattanooga
22-Apr TN Renewable Energy Economic Development Council (TREEDC)/Jackson Energy Authority Jackson
2-May Tennessee Chamber of Commerce and Industry Manufacturing Excellence Conference Nashville
3-May Baker Center Electric Vehicle Symposium Knoxville
17-May TREEDC Bethel University McKenzie
12-Jun TREEDC Columbia State College Franklin
19-20 Jun Memphis Sustainability Event Memphis
June/July Multi-Family Energy Efficiency Workshop Knoxville
June/July Multi-Family Energy Efficiency Workshop Nashville
9-Jul TREEDC Austin Peay State University Clarksville
17-Jul & 18-Jul Industrial Energy Efficiency Summit Nashville
25-Jul National Association of Women Business Owners - Nashville Chapter - Focus on Energy Efficiency Nashville
26-Jul TREEDC Tennessee Tech University Cookeville
21-Aug & 22-Aug Oak Ridge National Laboratory Sustainability Conference Knoxville
July/Aug Industrial Energy Efficiency Network/TN Tech Workshop East TN
July/Aug Industrial Energy Efficiency Network/TN Tech Workshop Middle TN
July/Aug Industrial Energy Efficiency Network/TN Tech Workshop West TN
22-Sep thru 24-Sep American Council for an Energy Efficient Economy Conference Nashville
Acknowledgment: This project is funded under an agreement with the State of Tennessee.
This material is based upon work supported by the Department of Energy under Award Number DE-EE0000160. CFDA 81.041.
Calendar of Events
Partners
Contact Us:
Amy Bunton Senior Vice President
201 Venture Circle
Nashville, TN 37228
Phone: (615) 425.7171
Fax: (615) 425.7172
Email: [email protected]
Toll Free: (888) 5EE-PATH (533-7284)
TNEnergyEducation.com