Valley Investment Program (VIP)
The Valley Investment Program is an economic development incentive program jointly offered by TVA and participating distributors of TVA power. VIP offers financial incentives to existing power customers who contribute to the economic development of the seven-state TVA region.
Existing customers must meet the following program qualifiers:
- Minimum 1001 kW peak monthly demand for at least 12-months
- Minimum 25 employees and no plans to reduce workforce by 50 percent or more
- Financially sound
- Projected capital investment over a five-year period of 50 percent of the facility’s book value
- Standard power contract with a remaining term of at least five years
Award amounts are based on a customer’s industry multiplier as well as five-year projections and actual performance in the following categories:
- Capital Investment as a percentage of facility book value
- Full-time equivalent employees
- Power Demand
- Annual wages paid
- Energy Usage
VIP awards are subject to the availability of budgeted funds and will be paid as monthly power bill credits over a five-year period
Energy Right Solutions for Business & Industry
What types of facilities are eligible for the program?
- All commercial customers and small businesses
- Industrial customers
- Institutions such as schools, hospitals and government offices.
Energy efficiency is a clean, carbon-free resource that helps keep electricity costs lower for all Valley consumers. When business customers manage their power use more efficiently, demand on the TVA system goes down. That lowers TVA’s fuel costs and reduces its need to expand power plants in the future.
What does the program offer?
Various levels of energy assessment are offered depending on the size and complexity of the opportunities for energy efficiency savings. The less-detailed studies are free, and TVA and your local power company may share the cost of a more complex assessment with you.
Cash rebates are available for the replacement of certain types of equipment with more efficient models.
Projects that are not covered by a standard rebate may be able to receive incentives tailored specifically for the project.
Why should you participate?
This is a free source of technical expertise to help you find and manage energy efficiency opportunities on an ongoing basis by looking holistically at all uses of electricity in your plant. Some of the benefits from using this resource are:
- Free energy assessments from industry experts
- Economic evaluation of energy efficiency opportunities
- Unbiased technical support to identify energy efficiency improvements
- Project identification and development help from your assigned TVA Efficiency Project Manager
- Custom information package on all applicable TVA energy programs and products
- Energy project implementation advice
- Measurement of actual energy efficiency savings from implemented projects
What incentives are offered?
TVA offers a lump-sum incentive amount of $0.10 per kWh on first-year savings or 70 percent of project cost, whichever is less, for the implementation of energy efficiency projects that result in energy savings.* Incentives are based on measurement results after the project is completed.
How do I subscribe?
Participation is easy. Contact your local power distributor today.
General Manufacturing Credit (GMC)
Companies whose monthly demand falls between 1,000 and 5,000 kW and SIC code is between 20 and 39, will qualify to receive the substantial benefits of the General Manufacturing Credit Program. These credits are offered by TVA and the local power distributor to assist new and expanded businesses. The credit is available under Part 3 of the GSA or TGSA rate schedules. In any month when the metered demand for firm power exceeds 1,000 kW, a credit is applied to each kW of metered demand used in determining the firm billing and each kWh of firm energy. The monthly credit is equal to the sum of:
- $1.38 per kW for the first 1,000 kW of metered demand
- $1.63 per kW of any metered demand amount in excess of 1,000 kW, and
- $0.01076 per kWh of firm energy (1.076 cents/kWh)
Comprehensive Services Program
Pennyrile Rural Electric Cooperative and TVA offer a wide variety of programs designed to help companies identify energy solutions that generate savings and increase profit. These programs are typically available at little or no cost.
Such programs include
- identifying energy efficiency improvements for buildings and equipment
- recommending energy-efficient construction guidelines
- power quality monitoring and recommending solutions
- providing lighting analyses and recommendations
- analyzing energy management systems
- consulting on HVAC systems and technologies
- infrared and ultrasonic testing services
Through Pennyrile Rural Electric Cooperative, TVA staff can provide technical assistance to improve process efficiencies, quality and throughput. TVA industrial specialists, as well as national industry consultants, study the processes and make customized recommendations. Our main objective is to help the end user become more efficient so that the unit cost per part is competitive within their market place. These services are generally available at no cost.
Economic Development Loan Funds (EDLF)
The EDLF provides loans to established companies relocating or expanding their operations in the Tennessee Valley. Funds may be used for building expansions, equipment, and other purposes and are offered with flexible terms and rates. Loan amounts, terms and interest rates are dependent upon criteria such as number of jobs created, total capital investment, security provided, and impact on the community. All loans are subject to a financial and eligibility review.