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Combined Heat and Power Partnership

Commercial Energy Efficiency Loan Program

Date Last Updated3/27/2013
Incentive TypeLoan
State/FederalTN
Incentive Administrator/Contact OfficePathway Lending
Incentive Initiation Date1/4/2011
Incentive Size and Funding SourceBased on a U.S. Department of Energy Industrial Loan program, Pathway Lending's Energy Efficiency Loan Program provides below-market loans for energy efficiency and renewable energy improvements. Loans range from $20,000 to $5 million. The shared savings option allows organizations to pay off the loan over a 10-year period with 50% of the money going to renewable energy and energy efficiency projects, while retaining the remaining 50% through energy savings to pay off the loan (most common for projects with a 2-year simple payback and a 4-year loan term). All costs related to the efficiency measures may be financed, including loan fees, assessments, design, equipment and installation. The amount of savings achieved monthly through energy use reduction determines the monthly payments for the loan as long as payments do not exceed 10 years. The interest rate is 2% fixed for terms up to 5 years and 5% fixed for terms between 5 and 10 years. There is no prepayment penalty. The program has a $50 million budget.
Eligible RecipientTennessee business and non-profit entities.
Eligible FuelDoes Not Specify
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required (%)Does Not Specify
Application Form(s)Application Documents
Other Incentive DetailsPathway Lending is currently working with the following city and county governments to provide these low interest loans: Memphis/Shelby County, Knoxville/Knox County, and Nashville/Davidson County.
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