Alternate Energy Revolving Loan Program (AERLP)
This program is open to any individual interested in building a renewable energy facility for their home or business in Iowa. Biomass (waste management, resource recovery, refuse-derived fuel, agriculture crops or residues, and wood burning facilities), wind (small and large turbine), solar, hydro or a combination of technologies are eligible for funding. The loans are not available for refinancing existing loans.
Program History and Background
The Alternate Energy Revolving Loan Program (AERLP) was created by the Iowa Legislature in 1996 (1997 Iowa Code: Section 476.46) to promote the development of renewable energy production facilities in the state.
The $5.9 million of the AERLP funds were provided entirely through Iowa’s investor-owned utilities and the Iowa Energy Center was chosen by the Legislature to manage the program. In 2009 as part of the I-JOBS bill, new funds totaling $5 million were added and the program received an additional $5 million in 2010.
The Energy Center has developed the AERLP in such a way that loans are given based on both the technical merit of a project and the financial qualifications of the applicant. The Energy Center provides loan funds equal to 50% of the total financed cost of a project (up to $1 million) at 0% interest. Matching financing for the project must be obtained from a lender of the applicant’s choice. As these loans are repaid, the Energy Center’s share of funds become available for loans to future projects.
The AERLP funds serve a balanced mix of technologies including solar, biomass, small hydro and small and large wind turbine facilities.
The Iowa Energy Center is interested in feedback about the AERLP. If you would like to comment, send a note to the Energy Center at firstname.lastname@example.org.