The Energy Improvement Loan Program (EILP) is sponsored by the State Energy Office, N.C. Department of Administration. The program provides low interest loans, secured by bank letter of credit (non-applicable for local governments and school systems), for eligible energy conservation measures for industry, commercial businesses, local government units, community colleges, K-12 school systems, and nonprofit organizations.

Loans with an interest rate of 1 percent are available for some renewable energy projects and energy recycling projects. A rate of 3 percent is available for projects that demonstrate energy efficiency, energy cost-savings or reduced energy demand. The loan can be repaid from the energy savings these improvements generate. Applicants must negotiate with their lending institution any fees charged over and above these rates.

This loan program is not available for residential customers or state or federal agencies.

Loans up to $500,000 per recipient are available now. Loans requested for new construction will be made only for the incremental costs between state code and above-code improvements.

Organizations must meet the following criteria to be eligible for low-interest rate loans:

• Facilities must be located in the state of North Carolina.
• Projects must demonstrate energy efficiency, use of renewable energy resources, or result in energy costsavings or reduced energy demand.
• Projects must use existing, proven reliable, commercially available technologies.
• Projects must meet federal and state air and water quality standards.
• The time period of the loan will equal the average payback time of conservation measures, not to exceed 10 years.
• Applicants (except schools, local governments and community colleges) must have a letter of credit from the lending institution to guarantee loan repayment.
• A technical analysis of the facility must be conducted.

Areas of energy improvements can include:

• Premium efficiency boiler and chiller systems
• Energy management systems
• HVAC systems
• Industrial process or fabrication systems
• Building envelope—doors, windows, roofs, etc.
• Alternative/renewable energy systems
• Premium efficiency motors and variable speed drives
• Premium efficiency fans, pumps and air compressors
• Energy recovery systems, including on-site generation of electricity
• High-efficiency lighting systems