Description

The Maryland Energy Administration (MEA) offers loans for the installation of electric and fuel (gas, fuel oil, propane, and coal) energy efficiency improvements to commercial and industrial businesses located in Maryland. Projects must have a simple payback period of 10 years or less in order to qualify for a loan. Loan amounts may range from a minimum of $35,000 up to $500,000 for electric-only energy efficiency projects and $750,000 for projects that involve both electric and fuel efficiency measures. A business may apply for multiple loans, but the total outstanding loan balance may not exceed $750,000 for all loans in aggregate. All loans under this program have a fixed interest rate of 2.5% over loan terms of up to 10 years.

Loans are available for a variety of different measures undertaken at existing buildings, including but not limited to HVAC upgrades, whole building measures, weatherization improvements, motors, industrial equipment, commercial kitchen equipment, and custom measures. Loans will not be made for improvements at facilities used for fraternal or religious activities; repairs of outstanding defects or non-operational equipment; fuel switching; peak demand reduction systems; or non-fixed appliances and equipment. Eligible costs do not include new construction or major renovations, improvements not directly related to energy efficiency, financing costs, or measures that reduce energy costs without also resulting in actual energy savings.

Funding for the program comes from the Maryland Strategic Energy Investment Fund (SEIF) and federal economic recovery, or ARRA funds. A total of $5.6 million is available through Fiscal year 2011 (FY 2011) under the current program budget. It is important to note that the use of ARRA funds requires that program participants comply with a special set of terms and conditions, including Davis-Bacon prevailing wage requirements on the part of contractors. Further information on these and other program requirements is available on the program web site.