Salem Launches Commercial Lighting Loan Program

(SALEM, Ore.) - Today, the City of Salem, in partnership with West Coast Bank, launched a new pilot loan program for Salem-area Portland General Electric and Salem Electric commercial customers. Through the new program funded by the City’s Energy Efficiency and Conservation Block Grant, commercial business owners and tenants are eligible to receive incentives of up to 50 percent for lighting improvements and access to a low-interest loan for the remaining costs.

Eligible lighting improvements include adding compact fluorescent lamps, electronic ballasts, and lighting controls (occupancy sensors and dimmers), and typically result in a payback period of between 3-4 years.

“Lighting is the best first step for businesses wanting to manage energy costs,” said Peter West, director of energy programs at Energy Trust. “This pilot program can remove the barrier of upfront capital to invest in energy efficiency and help Salem businesses gain bottom line benefits from energy efficiency.”

The program is modeled after a successful residential program operated by Salem Electric and West Coast Bank. The City of Salem will use $120,000 of its Energy Efficiency and Conservation Block Grant (EECBG) funding to buy down the interest rate of participating loans to 1 percent. Assuming a $5,000 loan average, EECBG funding will buy-down the interest rate for approximately 117 loans. To qualify for the financing, lighting projects must be installed and loan applications processed by July 31, 2012.

“The low interest loan provides a great opportunity for smaller commercial members to install energy saving lighting projects without having a big impact on their budget,” stated Terry Kelly, member services manager at Salem Electric. “The reduction in their electric bill will help offset the monthly payment cost, resulting in a quick payback on the member’s investment. We’re excited about this partnership.”

Joe Barra, PGE’s director of customer energy resources, agreed. “It is important to support our customers in their efforts to reduce their energy use and improve their bottom line,” Barra said. “This new loan program gives customers another option when making energy efficient improvements. We look forward to working with the City of Salem and other partners to make this program a success.”

The West Salem branch of West Coast Bank will service the loans. For Salem Electric customers, the utility will pay contractors up to 50 percent of the project costs and the building owner, or any licensed, bonded contractor can perform the lighting improvements. For PGE customers, Energy Trust of Oregon will pay the customer or contractor $0.17 per annual kilowatt-hour saved, up to 50 percent of project costs and work must be completed by an Energy Trust Trade Ally.

“West Coast Bank was honored when asked to partner to launch a new loan program for Salem area business owners and tenants. We are excited to help businesses in our local community save money, operate more efficiently, and conserve energy. West Coast Bank is very committed to the sustainability of the communities we serve,” said LeAnn Keim, VP, regional sales manager at West Coast Bank.

Program information and an application can be obtained from Salem Electric, West Coast Bank, or the City’s Urban Development Department. For more information, please contact Annie Gorski at 503-588-6178, email agorski@cityofsalem.net, or visit www.cityofsalem.net/sustainability and click on “Community Energy Strategy”. Applicants need to meet West Coast Bank’s underwriting requirements and those required by the utilities. An inspection will be required prior to project start and after project completion to ensure the work was done properly and will produce the desired energy savings.

News Release by the City of Salem