Low-Interest Loans to Lower Utility Costs

Published 07/21 2014 04:48PM

Updated 07/21 2014 05:17PM

There's a new way for business owners and local governments to borrow the money they need to lower their utility costs.

New York State has created the Energy Improvement Corporation which provides low-interest loans through its Property Assessed Clean Energy or PACE program.

Officials say the rates are typically lower than most commercial financing and that the terms can be as long as 20 years.

Loans granted cover 100 percent of the cost of energy efficiency upgrades.

Assemblywoman Donna Lupardo, who helped to create the program, says saving energy not only helps the environment, but also a company's bottom line.

"When buildings are more energy efficient, we save more money in running them. Not only that, but often times, the working environment or climate inside buildings that are more energy efficient are better for people's health," said Lupardo.

To qualify, companies and municipalities must submit an energy reduction plan that shows the amount of energy savings will reduce operating costs beyond covering the debt service, improving the business's cash flow in year one.

Energy Improvement Corporation Managing Director Joe Del Sindaco says that also makes PACE a great economic development tool.

"These projects create lots of jobs. They create direct jobs, indirect jobs, and, as I mentioned before, the energy savings actually frees up cash which is reinvested back into the community," said Del Sindaco.

Jim Ehmke says: Assemblywoman Donna Lupardo recently hosted an informational session about PACE at the State Office Building.

Del Sindaco says the state has $100 million in federal funds and bonded money to start loaning now.

For more information go to PACENow.org.

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