Arkansas Energy Office

Arkansas Energy Technology Loan Program

The Arkansas Energy Technology Loan (AETL) Program finances energy related cost reduction retrofits and green energy implementation for Arkansas companies. The AETL program encourages Arkansas companies to make investments in clean technology and improve energy efficiency of their processes and facilities. This enables the companies to operate with a higher degree of energy efficiency to promote job creation and retention, particularly in industries that are at-risk due to high energy demands. Low interest rate loans are provided to assist those companies in financing their energy cost reduction efforts. The program's revolving loan mechanism allows borrowers to repay loans through the stream of cost savings realized from the projects. The AETL Program provides two funding mechanisms for potential applicants. 

  • The AETL Program - Capital Improvements Loan finances energy related cost reduction retrofits and green energy implementation for business located in Arkansas.
  • The AETL Program - Green Technology Loan targets and supports clean technology companies in Arkansas that make or sell products/services that contribute to renewable energy production or storage, energy efficiency, or that result in an overall reduction in energy use in the state.  

See below for more information on each loan type and to download program documents. 

Types of Loans
Arkansas Energy Technology Loan: Green Technology

The AETL -Green Technology Loan targets and supports clean technology companies in Arkansas that make or sell products/services that contribute to renewable energy (RE) production or storage, energy efficiency (EE), or that result in an overall reduction in energy use in the state.   A wide range of activities will be funded as part of the mission of the Green Technology Loan with a preference toward projects that use leverage to attract additional financing, investment or in-kind support.

Project Activities

A wide range of project activities may be funded as part of the mission of the AETL-Green Technology Loan. Possible project that can be financed through the loan program include, but are not limited to:

Technology Improvements:  Support interaction with resources that can analyze existing techniques or technologies in order to speed improvements and deployment of commercially available EE/RE techniques and technologies.  Borrowers are encouraged to seek partnerships that develop and demonstrate advances in EE and clean technologies.

Renewable Energy Products: Acquire, upgrade or demonstrate renewable energy products, equipment and materials for use in an operational setting.

Workforce development: Conduct education and training activities for employees related to the sale, installation and maintenance of green technology systems and equipment and/or building codes and inspections to promote building energy efficiency.

Financing Options

Financial strength of the Borrowers will be one factor used in determining the interest rate reduction. The market rate at the time of closing will be used to determine the starting point of the interest rate with an option to lock in the rate at an earlier time. To encourage companies to commit to EE projects with a longer return on investments, a lower interest rate will be considered for the extended period. Examples of typical loan rates include.

  • Loan Term 6 – 10 years = 2% below market rates
  • Loan Term 3 – 5 years = 1.5% below market rates.
  • Loan Term 0 – 2 years = 1% below market rates.
Arkansas Energy Technology Loan: Capital Improvements

Arkansas Energy Technology Loan (AETL) – Capital Improvements

The AETL Program – Capital Improvements Loan finances energy related cost reduction retrofits and green energy implementation for business located in Arkansas.  The program encourages Borrowers to make investments in clean technology and improve the energy efficiency of their facilities and processes. Low interest rate loans are provided through the Arkansas Energy Office to assist those Borrowers in financing their energy cost reduction efforts. The AETL’s revolving loan mechanism allows Borrowers to repay loans through the stream of cost savings realized from the projects.

Project Activities

A wide range of project activities may be funded as part of the mission of the AETL-Capital Improvements Loan. For example some of the Energy Efficiency Measures (EEMs) that can be financed through the loan program include, but are not limited to:

Retrofits: installation of insulation; installation of efficient lighting; heating, venting, and air conditioning (HVAC) and high-efficiency shower/faucet upgrades; weather sealing; the purchase and installation of ENERGY STAR appliances; installation of solar powered appliances with improved efficiency; and replacement of windows and doors.

Energy Audits: which includes hiring technical consultants to conduct such audits. 

Codes and Inspections: Development and implementation of building codes and inspection services, and associated training and enforcement of such codes in order to support code compliance and promote building energy efficiency.

Financing Options

Financial strength of the Borrowers will be one factor used in determining the interest rate reduction. The market rate at the time of closing will be used to determine the starting point of the interest rate with an option to lock in the rate at an earlier time. To encourage companies to commit to EE projects with a longer return on investments, a lower interest rate will be considered for the extended period. Examples of typical loan rates include.

  • Loan Term 6 – 10 years = 2% below market rates
  • Loan Term 3 – 5 years = 1.5% below market rates.
  • Loan Term 0 – 2 years = 1% below market rates.