Louisville leverages $2 million investment toward energy efficiency and renewable energy projects
Louisville Metro Government closed on two agreements through its Energy Project Assessment District (EPAD) program that will provide more than $2 million in private loan funds for energy efficiency projects at Tennis Club at Springhurst and a new La Quinta Del Sol hotel.
“The science behind global climate change is indisputable, and in order to make a difference, individuals, organizations, business and government must all take action to reduce emissions and shift to more renewable energy sources,” said Mayor Greg Fischer. “Offerings like the EPAD Program help property owners invest in renewable energy and energy efficiency upgrades to benefit our environment.”
The EPAD Program (known nationally as Property Assessed Clean Energy, or “PACE”) is a financing mechanism that helps property owners repay loans for energy efficient, renewable energy and water conservation projects with no down payment. All the capital comes from private sources.
Unlike a traditional loan however, loans through the EPAD program are affixed to the property title, rather than the property owner, and are repaid through a voluntary annual assessment administered by the Jefferson County Sheriff. Applicants also can receive loans that cover up to 100% of the project’s hard and soft costs.
Company Sachi LLC received a 25-year, $1.7 million loan from PACE Equity to install a high-performance building envelope, a high-efficiency HVAC system, 52 solar panels, and 20 windmills at a 94-room La Quinta Del Sol currently under construction near Old Henry Road.
Dr. Sunny Dronawat, managing member of Sachi LLC, said investing in renewable energy makes good business sense. “Consumers feel good when they spend their money on goods and services that incorporate sustainability, green energy elements and energy conservation elements into their business practices. The Millennial generation is spending money on hotels that incorporate green elements.”
Installations began in April 2018 and are estimated to be completed by Summer 2020. A Utility Impact Analysis completed by PACE Equity estimated total projected energy savings of more than 420,000 kWh annually – enough energy to power 50 houses for one year or take 63 passenger vehicles off the road.
“Working with Sunny on the La Quinta Del Sol in Louisville is a shining example of utilizing PACE financing. It allowed the hotel to incorporate substantial energy efficiency and renewables but also a low-cost funding mechanism to pay for those items. PACE Equity continues to be the leader in utilizing Property Assessed Clean Energy financing for new construction,” said Ethan Elser, executive vice president of PACE Equity.
The La Quinta Del Sol and Tennis Club at Springhurst are the third and fourth projects funded through Louisville Metro’s EPAD program.
Tennis Club at Springhurst received a $400,000 loan from Lever Energy Capital to upgrade its existing lighting system with state-of-the-art LED technology and install a new HVAC system. The loan will be repaid over 15 years.
“The EPAD Program has allowed us to easily finance a much better system than we could afford through general cash flow. And the financing process is so easy and straightforward. We loved the process and love the product,” said Chris Mather, owner of the Tennis Club at Springhurst and Louisville Sports Academy.
Learn more about the EPAD program at https://louisvilleky.gov/government/sustainability/epad-program.
In addition to the EPAD Program, Louisville Metro Government, through its Office of Advanced Planning and Sustainability, offers incentives to property and business owners to invest in measures via its Cool Roof Rebate Program to combat the Urban Heat Island effect and reducing cooling costs.
The Office of Advanced Planning and Sustainability released a draft Emissions Reduction Plan in late 2019 and will finalize that plan in February 2020. Learn more about the Emissions Reduction Plan here: https://louisvilleky.gov/government/sustainability/greenhouse-gas-inventory
In 2020, Louisville Metro Government will continue to electrify its vehicle fleet, will replace 25,000-square-feet of roofs on Metro-owned buildings with cool roof technology, will explore an environmental purchasing policy, and will release a climate adaptation plan with actionable items for Louisville Metro and other partners. The city also is in regular conversation with LG&E regarding more renewable energy options for Louisville Metro operations
For more information about the Office of Advanced Planning and Sustainability and its efforts, visit https://louisvilleky.gov/aps.