Wisconsin's Clean Energy Manufacturing Revolving Loan Fund

(servicing a wind turbine, from siemens.com)

It is hard to argue against the idea that Western style capitalism and the search for ever-growing profit and development is a major source of today's environmental woes.  Those systems are still in place, and largely control the flow of resources over much of the planet, and so must be utilized in a beneficial way to right the wrongs of the past.  A large portion of the power of market-based environmental solutions lies in the ability for actors to work on problems while still working in their own best interest.  This, in turn, gives more flexibility and choice to consumers, instead of old-style regulation that, some contend, limits choice.

Energy markets in the West, however, are usually semi-private monopolies or occasionally oligopolies, and so are difficult markets to enter.  One way to promote a healthy marketplace, with increased diversity of industries, greater consumer choice, and disruption of ponderous monopolies, is to give a boost to smaller businesses that are working toward establishing alternative energy sources as viable on a broad scale.  The energy monopolies, such as WE Energies locally, tend to try to fight the threat posed by alternative decentralized energy industries to their revenue streams, and it can be very difficult for small companies not just to compete, but also to convince the public of their viability.

One such program in Wisconsin is a revolving loan fund that "makes low interest financing available to private companies to invest in energy efficiency and waste reduction projects", as described by the Wisconsin State Energy Office.  Revolving loan funds are common programs similar to microcredit, giving financing to usually smaller businesses in a specific region or sector that could normally struggle to find sufficient capital.  The fund is refilled as loans are paid off by these businesses repay their loans, and this money becomes available for new loans as it is replenished.

This particular program currently stands at 20 loans, totally $38 million, and is run jointly by the Wisconsin Economic Development Corporation and the Public Service Commission of Wisconsin.  The WSEO states that the program intends to specifically target the food industry.  These low interest loans are available for up to $1 million for private businesses.  The WSEO website contains a list of companies that have achieved success in this program.  They are from a wide range of industries (cheesemaking, manufacturing, post-consumer recycling, waste-to-fuel conversion, and more), which appears to be a sign of a healthy and successful program.  As the alternative energy industry explodes, these small loans will help solidify an entire economic sector for the future, providing much needed evidence of the ever-important cost efficiency of sustainability.