Crown Loans

EECA offers loans to assist agencies to implement energy efficiency projects. Loans are available to government departments, District Health Boards, Crown owned companies, territorial authorities, regional councils, universities, polytechnics, schools and Crown entities.

These organisations have a collective annual energy spend of around $200 million.

For more information please phone 0800 EMPROVE (0800 367 768) or email crownloans@eeca.govt.nz

 

What projects can be financed?

The scheme offers full or partial funding of projects designed to achieve energy cost savings. Funds may cover the cost of new or replacement equipment to achieve energy savings. At least 50 per cent of the savings must be in direct energy costs, with the remainder in related areas such as maintenance.

Loans are provided for projects that would otherwise be deferred or not able to proceed due to lack of funding.

How much can be borrowed?

Up to 100 per cent of the total cost of a project may be borrowed. This can include the cost of equipment, installation, design and project management fees, and energy audit fees. An organisation may borrow up to $200,000 in any one year. Further money may be advanced at the discretion of the EECA board.

What is the procedure for raising a loan?

Simply contact EECA with details of the project to be considered. We will make an independent assessment of the cost savings. This may be based on your own design work, or your consultant's recommendations, if these are detailed enough to confirm the savings. If further information is needed, or if there is a need for EECA staff to do a separate appraisal, this will be discussed with you.

What is the cost?

The total fee to be charged is calculated as: 10 per cent of the loan up to the first $100,000, plus 6 per cent of any additional amount over $100,000. For a three-year loan of up to $100,000, this is an effective finance rate of 6.6 per cent. At $200,000, the effective finance rate is only 5.3 per cent.

What do the fees cover?

Fees cover the costs of marketing and administering the scheme, for technical appraisal of projects and for EECA to monitor the performance of the project if required. They are assessed on the total cost of operating the scheme.

How are loan repayments made?

The repayment term for the loan principal is normally three years. Repayments are made quarterly.