Funding a renewable future

The Iowa Legislature created the Alternate Energy Revolving Loan Program in 1996 to promote the development of renewable energy production facilities in the state. Iowa's investor-owned utilities provided the entirety of AERLP's $5.9 million funding. The Iowa Energy Center was chosen by the Legislature to manage the program.

The Energy Center provides loan funds equal to 50 percent of the total financed cost of a project (up to $250,000) at zero percent interest. The applicant must obtain matching financing for the project through an Iowa lender of their choice. The Energy Center has been very successful in managing the AERLP funds. As these loans are repaid, the Energy Center's share of funds become available for loans to future projects.

AERLP funds are reserved for various types of renewable energy production facilities to make sure the program serves a balanced mix of technologies. These technologies include solar, biomass, small hydro and small and large wind turbine facilities.