Financing of Industrial Energy Efficiency Through State Energy Offices

The New York State Energy Office Energy Investment Loan Program has a uniquely successful track record on financing industrial energy efficiency projects. The program is conducted in cooperation with 105 financial institutions in New York State and offers loan-interest subsidies for energy-efficiency projects. Since 1987 the program has financed over a hundred industrial and agricultural sector projects for a total of loan amounts of almost $16 million. Annual energy savings are estimated at $4.26 million. Almost half the projects have involved process modifications that yielded the largest share of the savings from all loans in the sector. The average payback for projects involving process modifications was 5.7 years, and the average cost to the state of the program is 29¢ for each dollar of project cost. Other programs by utilities and the state energy office complement the loan program, contributing to its success