Site & Buildings DatabaseState Treasurer Cuts Interest Rates for Green Businesses
Treasurer cuts interest rates for green businesses
New program promotes energy savings, efficiency
New program promotes energy savings, efficiency
Illinois State Treasurer Alexi Giannoulias will offer discounted interest rates to businesses that are going green independently or through Ameren, ComEd and other energy-efficiency programs.
The "Green Energy" program is a one-year pilot program designed to encourage energy efficient development and improvements by offering low-interest loans to businesses, non-profit organizations and local governments in Illinois, Giannoulias said.
The Treasurer's Office will secure below-market interest rates for borrowers who finance their purchase or installation of energy efficient and renewable energy equipment at participating lenders. Projects must cost more than $10,000.
"Businesses that build clean will save green thanks to our interest rate breaks and their reduced energy consumption," said Giannoulias, who announced the program today at the Peoria NEXT Innovation Center in downtown Peoria. "Working together, the public and private sectors can make environmentally sustainable energy consumption more affordable, efficient and mainstream. Illinois consumers will benefit in the end."
Green Energy participants must have at least one of the following:
* Proof of participation in an Ameren, ComEd or Illinois
Department of Commerce and Economic Opportunity energy efficiency program
* A signed contract with an Energy Service Company
* A LEED accredited professional leading the bid for green
building certification from the U.S. Green Building Council
* A plan to install certified renewable energy equipment such as
solar panels, solar thermal energy systems or small wind energy systems
"The Ameren Illinois Utilities support energy efficiency and renewable energy initiatives designed to assist Illinois businesses manage energy costs and improve the environment. We applaud State Treasurer Alexi Giannoulias and his office for proposing and supporting these programs for Illinois business," said Stan Ogden, Ameren Illinois Utilities vice president of Customer Service and Public Relations.
To generate the interest rate cuts, the Treasurer's Office will deposit money at a partner lender. That financial institution will use those funds to offer the green business a below-market rate loan. As of today, businesses can secure a loan at less than 5 percent.
"Programs that provide incentives or savings for businesses in Illinois are critical to business recruitment and retention. Treasurer Giannoulias' Green Energy program provides both and also contributes to our sustainable environment," said Vickie Clark, chief operating officer of the Economic Development Council for Central Illinois in Peoria.
"Treasurer Giannoulias' Green Energy program is designed to help preserve Illinois' precious resources, while at the same time helping Illinois businesses realize savings on their energy bills," said State Senator Dave Koehler (D-Peoria). "I encourage businesses and non-profits in my district to take advantage of these incentives."
Based on recent legislation (SB 1592), ComEd and Ameren in June kicked off energy-conservation programs for commercial and industrial consumers of electricity.
The Ameren Illinois Utilities are offering a standard incentive program to business customers who install energy-efficient lighting, heating and cooling systems, refrigeration and motor systems. In addition, some business customers will be able to take advantage of the Ameren Illinois Utilities custom business incentive program which covers such projects as variable-frequency drives on process fans and pumps, compressed air system improvements, improvements to reduce energy use in manufacturing processes and other initiatives.
"The Green Energy program is an excellent example of how government and the business community can work together to help the environment," said Doug Whitley, president and CEO of the Illinois Chamber of Commerce.
"The Chamber and our new Energy Council wholeheartedly support these kinds of positive programs that reward businesses for making green choices."
ComEd is offering rebates for commercial and industrial customers that install electricity-saving equipment or lighting and could help retrofit inefficient, aging buildings. Incentives include rebates of up to $50 per lighting fixture and as much as $400 per refrigeration unit, plus other rebates for equipment as air conditioners, motors and other mechanical devices. Those participants who finance their projects at participating lenders will save more money due to interest rate breaks.
"Business owners are growing increasingly environmentally conscious, and the new, low interest loans available through this program will incentivize many to make smart new investments in more sustainable business practices," said Chicagoland Chamber of Commerce President and CEO Jerry Roper. "This program has the potential for both short- and long-term impact and Treasurer Giannoulias' should be commended for proposing creative solutions like this to help both people and businesses in Illinois."
The Green Energy program is the second environmental initiative promoted by the Treasurer's Office. The Green Rewards hybrid rebate program, which offered $1,000 cash rebates to Illinois motorists who purchased fuel-efficient vehicles, was recently suspended after meeting the 2,000 rebate cap within 10 months of its launch.
"We all win when businesses save energy. Jobs are created through manufacturing and installing clean energy equipment, and the air we breathe gets cleaner by reducing pollution," said Jack Darin, Director of the Sierra Club, Illinois Chapter. "Treasurer Giannoulias has put the power of the purse to work to lower energy bills and help solve global warming."
To learn more, visit www.treasurer.il.gov and follow the Cultivate Illinois link or call (217) 557-6436.
