Self-funding Through Energy Savings: Funding Opportunities

Some communities may be able to self-fund energy efficient projects. This is typically done with a fund within the city’s budget that is not needed for a couple of years. The responsible party of the fund (let’s call it the “Agency Fund”) will arrange to invest its money into the city’s water fund to build the energy saving project, and the Agency Fund will increase as an interest bearing investment. To accomplish this, the water fund will pay back the loan with monthly or yearly payments. The period of the loan, or its time duration, will be within the time constraints of the Agency Fund. The city’s water fund will make payments to the Agency Fund from surplus revenues generated by the energy cost savings.

The following tables are presented to enable an estimation of the water fund costs for varies interest rates and time periods for complete payback, with interest.

Monthly Payments

To determine the monthly payments associated with an inter-agency loan:

1. Determine the interest rate and the loan period in months.
2. Find the factor in the table below for the interest rate and time period.
3. Multiply the amount of the loan by the identified factor.

Yearly Payments

To determine the yearly payments associated with an inter-agency loan:

1. Determine the interest rate and the loan period in years.
2. Find the factor in the table below for the interest rate and time period.
3. Multiply the amount of the loan by the identified factor.