Minnesota Energy Loan

April 12, 2013


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.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Minnesota
Incentive Type: Loan Program
Web Site: http://thenec.org/financing/minnesota-energy-loan
Administrator: Neighborhood Energy Connection
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Water Heat
  • Solar Photovoltaics
  • Geothermal Heat Pumps
  • Ceiling Fan
  • Water Heaters
  • Lighting
  • Furnaces
  • Air conditioners
  • Caulking/Weather-stripping
  • Duct/Air sealing
  • Building Insulation
  • Windows
  • Custom/Others pending approval
Maximum Loan: $35,000
Loan Term: Loan terms from 1 - 20 years at a fixed rate of 5.75%;
Maximum household income of $96,500


Name: LeAnne Karras
Organization: Neighborhood Energy Connection
Address: 624 Selby Avenue
Saint Paul MN 55104
Phone: (651) 221-4462
Email: leannek@thenec.org

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.