Minneapolis Energy Efficiency Loan
The City of Minneapolis is offering a 0% APR loan to residents to make energy efficiency improvements to their homes.
To qualify, the recipient must have had a Home Energy Squad® (HES) visit or a Truth in Sale of Housing (TISH) Energy Disclosure report within 3 years of loan closing. Funds are available on a FIRST COME, FIRST SERVED basis.
About the Loan
- 0% APR
- Loan amounts from $2,000 to $20,000.
- Loan terms up to 10 years depending on the loan amount.
- Household income cannot be over 150% of the area median income (AMI), based on your household size and adjusted gross income from the most recent Federal Tax Return. Qualifying income cannot be over $172,100. Qualifying income is the income needed to verify the ability to repay the loan.
- The total loan amount for all Energy Efficiency Interest Subsidy Loans CANNOT be more than $20,000 per year.
- Funds are available on a first come, first served basis.
Property Eligibility
- 1–4 unit owner-occupied residential properties located in the City of Minneapolis.
- Individually owned townhomes, twin-homes, and condominiums are eligible.
- Properties more than 4 units, cooperatives, manufactured homes, properties held in Trust, properties used for commercial purposes, and new construction properties are not eligible.
- Property must have had a Home Energy Squad (HES) visit or a Truth in Sale of Housing (TISH) Energy Disclosure report within 3 years of loan closing.
- Work may not begin before loan closing.
- Work must be completed within 270 days of closing
Loan Details
- This loan is secured by a mortgage.
- The loan amount can cover up to 100% of the total project cost, including utility rebates but excluding the Minneapolis Bonus Rebate.
- Work can NOT begin until after the loan is approved and closed. All work must be completed within 270 days of the loan closing. CEE may make exceptions on a case-by-case basis.
- Funds are available on a first come, first served basis.
- A credit report will be pulled and used as part of the loan qualifying process.
- Closing fees apply.
- One bid is required from a properly licensed or registered contractor with the MN Department of Labor. Please contact your City inspections department to verify if your project requires a permit. If you are hiring a contractor to do the work and it requires a permit, the contractor should pull the permit. The contractor must complete a Supplemental Application.
- Sweat equity or do-it-yourself (DIY) projects are NOT allowed. All projects must be completed by a properly licensed or registered contractor with the MN Department of Labor.
- Below is a list of the eligible energy efficiency improvements available with this loan.
| Eligible Improvement | Energy Efficiency Specification |
|---|---|
| Weatherization | |
| Attic air sealing and insulation | ≥ R49 or as much as possible with air sealing |
| Wall insulation | ≥ R11 or as much as possible |
| Triple-pane windows | Energy STAR Northern Climate v.7 windows replacing single-pane windows |
| Air source heat pumps (ASHPs) | |
| Cold climate ASHP — Non-ducted (Mini split) | 16 SEER2 (9.0 EER2), HSPF2 9.5, COP of at least 1.75 at 5°F and capacity ratio ≥ 70% at 5°F/47°F |
| Cold climate ASHP — Ducted or mixed ducted | 15.2 SEER2 (10 EER2), HSPF2 8.1, COP of at least 1.75 at 5°F and capacity ratio ≥ 70% at 5°F/47°F |
| ASHP — Non-ducted (Mini split) | 15.2 SEER2, 9.3 EER2, 8.5 HSPF2 |
| ASHP — Ducted or mixed ducted | 15.2 SEER2, 9.6 EER2, 7.8 HSPF2 |
| Gas heating systems | |
| Furnace | ≥ 96% AFUE or greater with a qualifying ASHP |
| Boiler | ≥ 95% AFUE or greater with a qualifying air source heat pump |
| Other | |
| Heat pump water heaters (HPWHs) | Energy STAR certified |
| Electric panel upgrades | Must increase amperage of existing electric panels if being done with a qualifying ASHP or HPWH |
| Health and safety upgrades related to the energy efficiency upgrade | Combustion safety, knob and tube wiring, asbestos abatement, and ventilation |
Questions?
Contact Janson Hunter or Jordan Bothun below.
- Janson Hunter: jhunter@mncee.org or 612-335-5873
- Jordan Bothun: jbothun@mncee.org or 612-464-5138
Hablamos Español: 612-335-5856
The current loan terms and conditions stated, including interest rates, do not constitute a commitment to lend or an offer to enter into an agreement, and that such an offer may only be made pursuant to Minnesota Statutes, Section 47.206(3) and (4).
Browse More Minneapolis Loans
Not sure what program works for you? Contact us.