AlabamaSAVES's decade-long success decarbonizing the State
AlabamaSAVES’ Decade-long Success Decarbonizing the State: A Legacy of Achievement
As we look back on the impactful history of the AlabamaSAVES Program, we celebrate a legacy of innovation and success in promoting energy efficiency across Alabama. Launched to support commercial, industrial, and non-profit businesses in their efforts to adopt energy-saving measures, AlabamaSAVES has left a mark on the state’s economic and environmental landscape.
A Decade of Impact
The AlabamaSAVES Program partnered with over 40 financial institutions to fund 110 loans. Sponsored by the Alabama Department of Economic and Community Affairs, The Program formed from a $65MM Revolving Loan Fund through the [INSERT ACT]. At the end of 13 year, the Program had funding commitments totaling $28MM in energy conservation measures, and supporting total project costs of $269MM. The Program played a pivotal role in transforming the energy landscape of Alabama, making it a leading example of how public-private partnerships can drive sustainable development.
Innovative Financing Solutions
The hallmark of AlabamaSAVES was its Participating Loan Product, which provided creative financing solutions for a wide array of energy efficiency and renewable energy projects. The Program's Participating Interest mechanism allowed financial partners to share the risk, making it easier for businesses to secure funding for projects that might otherwise have been financially unfeasible.
Success Stories
Building Renovations: The AlabamaSAVES Program actively sought out projects where it could provide funding for energy efficiency measures as part of larger building construction or renovation processes. As an example, for a project totaling $1.25 million, where $250,000 was allocated to energy-saving measures, AlabamaSAVES stepped in to purchase a $250,000 Participating Interest, reducing the financial partner’s exposure and facilitating the completion of the renovation.
Solar PV Systems: In another instance, AlabamaSAVES supported the installation of a $100,000 solar PV system on a commercial building as part of refinancing a $1.2 million first mortgage. By purchasing a $100,000 Participating Interest, the Program enabled the financial partner to refinance at $1.3 million while improving the building’s value and operational cash flow. AlabamaSAVES funded 15 solar projects in total, creating 1,700 kWp total for the state.
CNG Vehicle Conversion: The Program also funded conversion equipment for compressed natural gas (CNG) vehicles. For a $180,000 CNG truck, which included a $40,000 conversion cost, AlabamaSAVES purchased a $40,000 Participating Interest, ensuring the financial partner's exposure was aligned with the value of a standard diesel truck.
Energy Efficiency Leases: AlabamaSAVES facilitated loans to leasing companies for energy efficiency leases, such as a $200,000 lighting efficiency project. The Program’s $50,000 Participating Interest allowed financial partners to provide full financing while maintaining manageable risk exposure.
Acknowledgments and Gratitude to our Partners
The success of the AlabamaSAVES Program was supported by the U.S. Department of Energy’s State Energy Program and the Energy Division of the Alabama Department of Economic and Community Affairs. This collaboration exemplifies the power of joint efforts in achieving substantial environmental and economic benefits.
As the AlabamaSAVES Program concluded in 2022, its achievements serve as a testament to the possibilities of forward-thinking energy policies and financial innovation. The legacy of AlabamaSAVES will continue to inspire future initiatives aimed at fostering sustainable development and energy efficiency.
