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.