Alternative Energy Loan Program
What is it?
The Alternative Energy Revolving Loan Program (AERLP) was established by the 57th
Montana Legislature in Senate Bill 506 and amended in 2005.
It's purpose is to provide a financing option to Montana homeowners, small
businesses, non-profits and government entities to install alternative
energy systems that generate energy for their own use.
Net metering is allowed. The program is funded by air quality penalties
collected by the Department of Environmental Quality. Energy conservation
measures installed in conjunction with an alterative energy project may be
funded through the AERLP.
Download Loan Application Here:
Alternative Energy Loan Application
What are Alternative Energy Systems?
Alternative energy systems are defined in MCA 15-32-102 as "the generation system or equipment used to convert energy sources into usable sources. " The code
goes on to list "fuel cells that do not require hydrocarbon fuel, geothermal systems, low emission wood or biomass, wind, photovoltaic and small hydropower plants (under 1 megawatt) and
other recognized nonfossil forms of energy generation." DEQ will provide technical review and approval of systems proposed for the loan program.
What energy conservation measures may be included in a project?
Additional insulation, efficient windows, doors, fixtures and appliances are examples of measures that may be proposed for funding. Energy conservation measures must be installed as part of the alternative energy project to be funded through the program.
How much can I borrow?
Loans can be made up to a maximum of $40,000 (subject to available
funds), and may be repaid in up to ten years,
depending on the loan amount. Interest rates are set annually and are fixed
for the term of the loan. The interest rate for 2009 is 3.5 percent.
How does the process work?
DEQ will accept and process loan applications throughout the year. Approved projects will be ranked according to the criteria published in ARM, Title 17, Chapter 85,
which includes items such as system reliability, return on investment and avoided fossil fuel consumption. Once a loan is approved, the applicant will be informed as to whether funds are
currently available, and if not, when new funds are anticipated.
What is net-metering?
Net-metering is a special installation that allows any surplus energy generated by the customer's system to go back on the utility electric system and allows the
customer to receive "credit" for the electricity put back onto the system at retail rates. The customer's meter measures the electricity the customer used from the utility system less
the electricity the customer's system puts back.
Net metering is available on the North Western Energy and Montana-Dakota Utility systems for renewable installations of less than 50 kW capacity. Most electric co-ops also offer net-metering.
Contact your local electric utility for their current net metering policy.
How can I get more information?
Kathi Montgomery
Phone: (406) 841-5243
