Minnesota Energy Loan

Summary

The Neighborhood Energy Connection (NEC) administers the Minnesota Energy Loan, which offers secured, low-interest loans for qualified energy efficiency and renewable energy improvements to Minnesota resident. Loan repayment terms vary from 1 to 20 years according the amount of the loan, and are set at a fixed interest rate of 5.75%. Most costs of this financing offer, including a 1% origination fee, credit report fee, and document preparation fee, can be rolled into the loan. All loans are secured by a mortgage on the property.

Loans of up to $35,000 are available for single family homes, duplexes, and fourplexes with household incomes of $96,500 or less. In order to apply for a loan, qualified homeowners must contact the NEC to schedule an energy audit. The actual improvements undertaken are up to the homeowner, but financed projects must include at least one of the recommendations made by the auditor. The NEC may also provide assistance in selecting a contractor and will perform follow-up inspections at the request of the homeowner. Customers of Xcel Energy may be eligible for a reduced rate on an energy audit and should contact Xcel Energy (1-800-895-4999) directly to request an audit.