Sometimes energy efficiency and renewable energy projects are about creating cutting edge technologies. In other cases the focus is instead on breaking down financial barriers that would otherwise prevent people from making cost-effective use of clean energy technologies. Energy revolving loan funds are one way to jumpstart the use of these technologies.
An energy revolving loan fund can be an attractive option for financial assistance awards. In a revolving loan fund, loans are awarded for an initial round of eligible projects, then energy savings from those projects go toward repayment of the loan. The repayment replenishes the fund, allowing for another round of energy efficiency loans for eligible projects. The energy savings from those loans will follow the same cycle as the first round and so on. In this way, the revolving loan fund can create continual upgrades within a jurisdiction with only one initial investment. [More]