Last DSIRE Review: 11/10/2009
Program Overview:
| State: |
Nebraska |
| Incentive Type: |
State Loan Program |
| Eligible Efficiency Technologies: |
Clothes Washers/Dryers, Dishwasher, Refrigerators, Dehumidifiers, Ceiling Fan, Equipment Insulation, Water Heaters, Lighting, Lighting Controls/Sensors, Furnaces , Boilers, Heat pumps, Air conditioners, Heat recovery, Programmable Thermostats, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Doors, Roofs, Custom/Others pending approval |
| Eligible Renewable/Other Technologies: |
Solar Water Heat, Solar Space Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Geothermal Heat Pumps, Municipal Solid Waste, Skylights |
| Applicable Sectors: |
Commercial, Residential, Nonprofit, Local Government, Multi-Family Residential, Agricultural |
| Amount: | Varies | | Maximum Incentive: | Residential: $35,000 - $75,000;
Non-Residential: $75,000 - $175,000;
Home Electronics: $10,000;
Office Equipment: $25,000 | | Terms: | 5% interest or less. Maximum payback term is 15 years for building improvements, 5 years for appliance replacements and 10 years for all other projects | | Funding Source: | Oil Overcharge Funds; ARRA |
| Web Site: |
http://www.neo.ne.gov/loan/
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Summary:
This program makes available low interest loans for residential and commercial energy efficiency improvements. The Nebraska Energy Office administers this program, which was created in 1990 using oil overcharge funds. Only improvements to existing buildings that are at least 5 years old are eligible for loan assistance. As of September 30, 2008, 24,577 individual loans had been made totaling $194.4 million, financing $199.9 million in qualifying energy efficiency and waste minimization projects.
Through the American Recovery and Reinvestment Act, the federal government is awarding close to $31 million to Kansas' State Energy Program. The Kansas Energy Office submitted their plan for the funding to the US Department of Energy for review in May 2009. The plan includes $11 million of this total being injected into the Dollar and Energy Savings Loan Program to finance additional 2.5% loans for commercial and industrial sector building improvements, including K-12 schools.
This incentive applies mainly to energy efficiency improvements. However, renewable energy projects are eligible under one of two criteria. A project may be eligible if it is included in a list of "pre-qualified improvements." This list includes a variety of energy efficiency measures as well as the purchase of alternative fuel vehicles. Pre-qualified improvements have minimum efficiency standards which are listed on their respective forms. Projects not listed as pre-qualified improvements may be eligible with the submission of an energy audit that verifies that the project will have a reasonable payback period (varies by improvement type).
Much of this program’s success is due to the leveraging of state funds through collaboration with individual banks, savings institutions, and credit unions. Those seeking a loan under this program first approach their own financial institution, which approves the project on financial terms before contacting the State Energy Office for its approval. The State Energy Office then buys half of the loan at 0% interest so that the total interest on the loan "from the borrower’s perspective" will be half the market rate obtained through their private lending institution. All qualifying work should be completed within 5 months of Energy Office's commitment of funds. Of the over $194 million lent out so far, over $95.7 million has been Oil Overcharge money from the State Energy Office's revolving fund.
Though they are eligible, loans for renewable energy projects have not previously been widely sought and only a handful of renewable energy projects have been funded to date. It is felt that the program has potential benefits for renewables in Nebraska as well as other states where this structure could be replicated.
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