Financing clean energy in Alaska: lender profiles and new projects.

AuthorBarbour, Tracy
PositionSPECIAL SECTION: Clean Energy

With worldwide interest in clean energy continually increasing, Alaskans are using a variety of financial resources to improve energy efficiency and generate eco-friendly power.

Clean energy is often referred to as green or renewable energy. It includes solar, wind, water and other sources that can be harnessed with little or no pollution. Principal clean energy funding sources within the state include the Alaska Housing Finance Corporation, Denali Commission and Alaska Energy Authority. These agencies often work together to provide loans, grants, rebates and other programs that help businesses, communities and homeowners overcome the financial challenges of implementing clean energy projects.

Alaska Housing Finance Corporation

A self-supporting public corporation with offices in 16 communities statewide, AHFC focuses on giving Alaskans access to safe, quality and affordable housing. AHFC is commonly associated with financing home loans, but it also funds weatherization and energy-efficiency programs.

When it comes to energy efficiency, AHFC is all about reducing how much energy people consume in public buildings, homes and other facilities, according to Jimmy Ord of AHFC's Research and Rural Development Department. Conserving energy, he says, equates to fewer potentially harmful carbon dioxide emissions--which, in turn, promotes cleaner energy.

AHFC primarily finances energy-efficiency projects through loans and grants. For example, it offers an Alaska Energy Efficiency Revolving Loan Fund Program for public facilities. The program provides financing for permanent energy-efficient improvements to buildings owned by regional educational attendance areas, the University of Alaska, the state or municipalities in the state. Borrowers must obtain an investment grade audit as the basis for making cost effective energy improvements.

To stimulate the loan program, AHFC paid for 327 audits in communities from Southeast Alaska to the North Slope. The audits, conducted between 2010 and 2012, were made available by American Recovery and Reinvestment Act funds. "Now it's up to audit recipients as to how they want to finance their improvement project," Ord says.

Individuals can take advantage of the AHFC's Home Energy Rebate Program, New Home Rebate Program and Weatherization Assistance Program. With the Home Energy Rebate Program, homeowners can receive up to $10,000 for making energy-efficient improvements. New Home Rebate Program participants can get a $7,500 rebate on eligible home purchases. In both cases...

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