Zero Interest Loan for Businesses & Non-Profit Agencies

Overview

The Zero Interest Loan Program is designed to supplement the City of Palo Alto Utilities' (CPAU’s) existing efficiency programs by eliminating the need for customers to make an upfront capital investment to improve the energy efficiency of their facility.  Projects that qualify for rebates through CPAU non-residential programs are also eligible to receive a loan for the complete project cost.

The funds are loaned at a zero percent (0%) interest rate

Monthly loan payments are calibrated to match the estimated monthly cost savings resulting from the energy efficiency improvements – meaning your total monthly payment to CPAU should not increase even while making loan payments!

General Guidelines

The loan is designed to be cash flow neutral to your business. The monthly loan payment should approximately equal the monthly savings generated through the efficiency improvement.

  • Loans are available to non-residential customers only.
  • The minimum loan amount, after utility rebate, is $5,000. The maximum loan amount is $50,000 per utility account.
  • The project must qualify for and receive a rebate from a CPAU electric efficiency program. Natural gas projects do not currently qualify for loan funds.
  • The length of loan repayment is based on the simple payback of the efficiency project, not to exceed five years.

Customer must have CPAU account for the past two years at current facility. 

Sample Efficiency Project With Financing

SAMPLE EFFICIENCY PROJECT WITH FINANCING

Total Project Cost

$12,000

CPAU Project Rebate

$4,500

Loan Amount

$7,500

Estimated Annual Energy Savings

$4,250

Number of Monthly Loan Payments
(Simple Payback + 1 Month)

23

 

 

Monthly Estimated Utility Bill Savings

$354

Monthly Loan Payment

$326

Monthly Estimated Cash Flow

+$28

For more information about the program, please read the following:

Or call QuEST, our Program Administrator, at (866) 716-9400.

Last Updated: Apr 9, 2013