General
The AlabamaSAVES™ program participates in third-party lending, to commercial, industrial and non-profit businesses in Alabama for lighting, HVAC, controls, envelope, process improvement upgrades, solar photovoltaic systems and vehicle efficiency improvements including LNG/CNG or propane fleet conversions and idle mitigation technologies. The funding is enabled through the U.S. Department of Energy State Energy Program, and the Energy Division of the Alabama Department of Economic and Community Affairs (ADECA).

The AlabamaSAVES Program is a participating loan program where the Program will acquire a participating interest in a qualifying loan from a third-party banking partner and subordinate this acquired interest to the bank's interest, so that the bank can afford to extend more credit to the borrower on its project. The Participating Interest can be for the lesser of either (i) 100% of the cost of the Eligible Project; or (ii) 80% of Participating Loans up to $250,000 and 40% of Participating Loans greater than $250,000. THe Program's interest rate on its Participating Interest is 2% below the rate on the Participating Loan, thus reducing the overall cost of the financing. The benefits of this new approach are multiple - the borrower receives increased credit from its bank and a subsidy on the overall cost of the financing; the bank partner's loan is credit enhanced by the AL SAVES subordinated position; and the AL SAVES program is able to receive its capital back and recycle the same in a perpetual program in furtherance of its mission of supporting energy efficiency, renewable energy and alternative fuels across Alabama.

Eligible Businesses
Program funding is available to all private companies (i) with a place of business in Alabama that are duly organized and/or qualified to do business in the state and (ii) that own and/or operate one or more existing commercial, industrial, or institutional facilities in the state.

Eligible Projects/Improvements
Program funding may be used to purchase and install equipment for the following:

• Energy-efficient fixtures and retrofits installed on property owned and/or operated by an eligible business. Eligible energy-efficient fixtures and retrofits may include mechanical systems and components including HVAC and hot water, electrical systems and components including lighting and energy management systems, doors and windows, insulation, refrigeration and combined heat and power. Subsidized funding from the program is for retrofits of existing properties and NOT for new construction of buildings and factories.
• Renewable-energy systems installed on property owned and/or operated by an eligible business. Eligible renewable energy systems may employ solar, biomass, biofuels, geothermal, micro-hydroelectric, methane capture and use or fuel cell technologies.
• Efficiency improvements for vehicles and transportation equipment owned and/or operated by an eligible business, including conversions from diesel or gasoline to compressed natural gas and propane as alternative fuels or idle mitigation technology.
• If a 10 year simple payback is not attainable, additional measures "above and beyond" current state energy code minimums may allow for consideration of approvals on an exception, case by case basis. For example, compliance with ASHRAE 90.1 2013 or 2010 that deliver enhanced efficiency can provide the basis for an exception approval.

Application Process
The AlabamaSAVES™ program was redesigned in early 2012 to ensure simplicity:

The Expression of Interest Form allows for the collection of basic project information. The Financial Discussion is a consultation on financing and next steps. The Loan Application formalizes the request for a subsidy or direct loan. The application fee is $500 for projects less than $250K and $1,000 for larger projects. All applications will be reviewed for conformance of program policies on a timely basis by the Loan Review and Governance Committee, which is comprised of representatives from ADECA Energy Division, Abundant Power (Administrator) and other parties appointed by ADECA Energy Division. Before funding is awarded, an Energy Assessment, defining the project and estimated energy savings impact, must be submitted and reviewed to ensure a simple payback of 10 years or better.

Loan Terms
Effective as of July 11, 2016, the Program is providing participating loans (the "Participating Loan Program") where the Program will use funds to purchase a participating interest in (the "Participating Interest") a qualifying loan under the guidelines of the Program (the "Participating Loan"). The interest rate changed on the Program's Participating Interest will be up to 2% below the rate offered by the Lender Participant in the Participating Loan. The program's Participating Interest in the Participating Loan represents an undivided interest in the Participating Loan and is subordinate to the Lender Participant's position in the Participating Loan in the event of a default.

Minimum Participating Loan Size	$100,000 (Program's participating interest up $80,000)
Maximum Participating Loan Size	$4,000,000 (Program's participating interest up to $1,000, 000)
Interest rate	Up to 2% below the interest rate offered in the Participating Loan.
Participating Loan Term	As negotiated between the Lender Participant and the Borrower and documented in the Participating Loan, but the expected term is not to exceed the blended useful life of the improvements up to a maximum of 10 years for equipment. Loans for the purchase of qualifying equipment or the energy efficiency retrofit of existing real estate and renewable energy projects may have a longer term.
Use of Proceeds	The Participating Interest can be for the lesser of (i) 100% of the cost of the Eligible Project; or (ii) 80% of Participating Loans up to $250,000 and 40% of Participating Loans greater than $250,000.
Closing Costs	Program Fee charged at the greater of 2% of the Participating Loan Amount or $1,000 and reasonable and customary costs from a participating lender partner.
Other	Compliance with Program Technical Guide and federal provisions as applicable to ARRA subsidized loans, including Davis Bacon Act wage payment and reporting requirements.

Eligible Service Providers
Installing contractors, energy service providers, ESCO’s, product vendors, consultants, engineers and auditors all could serve a potential role in your energy saving project, dependent on your specific needs. To find out if your preferred contractor or other service provider is an authorized participant in the program, here is the list of Eligible Service Providers. If you wish to utilize a firm not already on this list, please encourage them to review requirements for participation as listed on the Providers page.