The LoanSTAR Program

State Loan Program
Eligible Efficiency Technologies:

• Lighting,
• Chillers,
• Furnaces,
• Boilers,
• Heat pumps,
• Air conditioners,
• Heat recovery
• Energy Mgmt. Systems/Building Controls,
• Building Insulation,
• Custom/Others pending approval
  

Eligible Renewable/Other Technologies:

• Passive Solar Space Heat
• Solar Water Heat
• Solar Space Heat
• Photovoltaics
• Wind
• Geothermal Heat Pumps

Applicable Sectors:

• Schools
• Local Government
• State Government
• Hospitals
  

Amount:
Varies

Maximum Amount:
$5 million

Terms:

• Current interest rates are 3% APR.
• Loans are repaid through energy cost savings.
• Projects must have an average payback of 10 years or less.

Project Review/Certification:

• Detailed Energy Assessment Report must be prepared according to LoanSTAR Technical Guidelines, available on the program website.
• SECO performs design specification review.

Funding Source:

• Petroleum Violation Escrow Funds
  Program Budget:
  $98.6 million (revolving loan)

Website:
http://seco.cpa.state.tx.us/ls.htm

Summary:

Through the State Energy Conservation Office, the LoanSTAR Program offers low-interest loans to all public entities, including state, public school, colleges, university, and non-profit hospital facilities for Energy Cost Reduction Measures (ECRMs).

Such measures include, but are not limited to: HVAC, lighting, and insulation. Funds can be used for retrofitting existing equipment or, in the case of new construction, to finance the difference between standard and high efficiency equipment.

• The evaluation of on-site renewable energy options (e.g., solar water heating, photovoltaic panels, small wind turbines) is encouraged in the analysis of potential projects.
• The LoanSTAR Program funds “Design, Bid, Built” or “Design, Built” projects.
• All projects are approved based on the Detailed Energy Assessment Report, which must be prepared according to LoanSTAR Technical Guidelines or the Performance Contracting Guidelines.
• SECO performs design specification review and on-site construction monitoring at the very minimum when the project is 100% complete.
• Repayment of the loans does not begin until after construction is 100% completed.
• As of November 2007, LoanSTAR had funded a total of 191 loans totaling over $240 million dollars and resulting in approximately $212 million in energy savings.
• Applications are available on the program website.

The technical guidelines for the LoanSTAR program can be found here.

Source : DSIRE Database