On September 2, 2015, the Governor of Virginia announced the launch of the Virginia SAVES Green Community Program. This is an interest rate subsidy program for large scale energy efficiency, renewable energy, and alternative fuel projects in Virginia for both private borrowers as well as local governments.
The interest rate subsidy is from the utilization of taxable Federal Qualified Energy Conservation Bonds (‘QECBs”) and historically the subsidy has averaged 3%. For example, if you finance an energy project at 5%, and access the subsidy, the borrower’s net interest rate is 2%. For local government borrowers which have been able to borrow recently in the 3-4% range, the subsidy potentially affords a net interest rate of below 1%.
To learn more about the program please visit the program website at: vasavesgcp.com. Materials about the program can be downloaded from the “Resources” page at the website. The unique program is sponsored by the Department of Mines, Minerals and Energy (DMME), and originated by leadership at Virginia Community Capital (VCC). VCC is a state chartered Community Development Financial Institution (“CDFI”) and banking entity with the mission of offering innovative, flexible financial products designed to support housing and community development ventures, increase jobs and build sustainable communities. VCC entered into the commercial building energy efficiency and solar sectors in 2015.
The allocation of QECBs is limited to $20 million in funding, VA-REA encourages early enrollment and project qualification to access this unique opportunity for low cost funding for your energy related projects.