Program to Finance Energy Improvements

Under the North Carolina General Statutes §160D-1320 “Program to Finance Energy Improvement,” the General Assembly allows for local governments to create a program that can finance the purchase and installation of renewable energy projects affixed to residential, commercial, or other real property. In pursuit of this, a local government can establish a revolving loan fund and a loan loss reserve fund to finance such projects, similar to the work of a Green Bank. The charged interest rate on loans may not exceed 8% per annum and the term of loans may not exceed 20 years. North Carolina’s definition of “renewable energy resources” includes various relevant technologies such as geothermal, solar thermal, and biomass.