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:
