The US Department of Energy (DOE) is now offering loan guarantees in support of renewable energy and energy efficient projects. The program does not focus specifically on Energy Savers and LED light bulbs but energy efficient solid state lighting (SSL) will be one of the five categories in efficiency improvements.
The DOE have $2.5billion (£1.5 billion) in loan guarantee authority at the ready with the potential to expand the guarantee authority upwards based on credit subsidy rates.
The program will fund projects that are more efficient in the generation, transmission and distribution of electricity. There is a tie to the LED-lighting technology sector in the transmission area as well with DC-based grids offering a potential efficiency advantage over AC grids especially when driving what are predominantly DC loads such as LED lighting.
Projects in the SSL space will come down to technology implementations that fit in the areas of ‘Efficient End-Use Projects’ and ‘Efficient Energy Projects’. The qualifying projects must directly reduce greenhouse gas emissions and employ new or significantly improved technology.
The DOE will use 3 factors when evaluating applicants for a loan guarantee. Finance will account for 45%, technicality will account for 35% and regularity or environmental issues will amount for 20%.