Iowa
Incentives/Policies for Renewables & Efficiency
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Last DSIRE Review: 07/06/2009
| Incentive Type: |
State Loan Program |
| State: |
Iowa |
| Eligible Renewable/Other Technologies: |
Solar Water Heat,
Solar Space Heat,
Solar Thermal Electric,
Photovoltaics,
Landfill Gas,
Wind,
Biomass,
Hydroelectric
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| Applicable Sectors: |
Commercial,
Industrial,
Residential,
Utility
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| Amount: | 50% of financed project cost |
| Maximum Amount: | $1,000,000 for most applicants, but $500,000 for non-rate regulated gas and electric utilities |
| Terms: | 0% interest
Maximum term of 20 years
Non-regulated utilities limited to 1 loan every 2 years
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Web Site: |
http://www.energy.iastate.edu/AERLP/index.htm
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Authority 1:
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Iowa Code § 476.46
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| Date Enacted: | 1996 |
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Authority 2:
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S.F. 376
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| Date Enacted: | 05/14/2009 |
| Date Effective: | 05/14/2009 |
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Summary:
The Alternate Energy Revolving Loan Program (AERLP) is administered by the Iowa Energy Center and funded by the state's investor-owned utilities.* The AERLP provides loan funds to individuals and organizations that seek to build renewable energy production facilities in Iowa. Loans from the AERLP were formerly not available to non-rate regulated utilities; however, S.F. 376 enacted in May 2009 amended the enabling statute to allow these entities to participate. Eligible renewable energy technologies include solar, biomass, wind and small hydro. Successful applicants will receive a single, low-interest loan that consists of a combination of AERLP funds and matching lender-provided funds.
The AERLP provides 50% of the total loan at 0% interest, up to a maximum of $1 million. Non-rate regulated electric and gas utilities are limited to 1 loan every 2 years with a maximum loan of $500,000. The remainder of the loan is provided by a lender at market rate. The maximum loan term allowed for the AERLP funds is 20 years. As the loans are paid back to the Iowa Energy Center, those funds are channeled back into the program and are made available to new applicants.
Technical applications for projects with a total financed capital cost of $50,000 or less are reviewed on a continuous basis. Higher cost project are reviewed on a quarterly basis according to the following deadlines: Oct. 31, Jan. 31, Apr. 30 and July 31. As of March 2009, the AERLP had provided loans of more than $11.4 million in support of 88 renewable energy projects.
*The loan fund was initially capitalized with a total of $5.9 million over a 3-year period of collections from the state's investor-owned utilities. In May 2009, S.F. 376 authorized an additional $5 million from the sale of state bonds for deposit in the fund.
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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