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What is the current SIR requirement?

When required by loan products, the SIR for a project needs to be greater than or equal to .80. However, other cost effectiveness requirements may also need to be considered depending on the loan type.

Refer to the SIR generated by Portal Eligibility Screening Tool (EST) and not modeling software SIR.

On-Bill Recovery Loan:

  • The monthly loan payment may not exceed 1/12th of the estimated annual energy cost savings over the loan term. (1/12th rule)
  • Savings to Investment Ratio (SIR) of 0.80 or greater, as calculated by the Portal or ProForma worksheet.
  • Non-energy saving measures (such as health & safety repairs and qualified accessories) are capped at 15% of the total project cost, not to exceed $2,000.
  • Average measure life must be greater than or equal to the loan term.

Smart Energy Loans less than or equal to $13,000:

  • For projects with more than 15%, not to exceed $2,000, in non-prequalified measure costs, a Savings to Investment Ratio (SIR) of 0.80 or greater is required, as calculated by the Portal or ProForma worksheet.
  • Average measure life must be greater than or equal to the loan term.

Smart Energy Loans greater than $13,000:

  • Savings to investment ratio (SIR) of 0.80 or greater, as calculated by the Portal or ProForma worksheet.
  • Simple payback period less than or equal to 15 years.
  • Average measure life must be greater than or equal to the loan term.

 

Resources for additional information:

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