The Pennsylvania Department of Environmental Protection (DEP) said Friday that it has reworked the Green Energy Loan Fund (GELF) to make it easier to obtain low-interest loans for large-scale, high-impact energy efficiency projects on commercial properties.
Approximately $1.8 million is available for the loans, DEP said in a statement.
“For commercial building owners who want to go big on energy efficiency, the Green Energy Loan Fund is an ideal resource,” said DEP Secretary Patrick McDonnell. “We support projects that take energy efficiency above and beyond building code standards, which other lenders may be less willing to support. This enables property owners to achieve significant long-term energy conservation, greenhouse gas emissions reduction, and cost savings in their utility bills.”
Managed by Reinvestment Fund, the GELF loans can be used to improve energy efficiency. New equipment must reduce energy use by at least 25 percent, and whole building projects must reduce energy by more than 10 percent. Reinvestment Fund works with building owners to ensure they meet the minimum requirement.
Two new improvements make borrowing easier for commercial property owners. First, borrowers may get even further reduced interest rates if they commit to a retro-commissioning several years after installing their project. Second, the Reinvestment Fund can now leverage GELF funding against any other capital they offer, increasing the total resources available to borrowers.
The fund will prioritize projects that focus on community development and environmental justice. The fund will also look at job creation.
Since its inception in 2009, the Green Energy Loan Fund has financed 16 projects totaling more than $23 million in improvements to 2.1 million square feet of building space. Created using U.S. Department of Energy funds, the program has reduced carbon dioxide emissions by 110,000 tons over the life of the projects.