Home Energy Loan Program

Borrow up to $60,000 at rates starting as low as 6.25% APR for energy improvements to your 1-4 unit primary residence, with loan terms up to 20 years and no prepayment penalty. Solar, air source heat pumps, insulation, and heat pump water heaters have no income limits; other eligible improvements like furnaces, air conditioners, windows, and insulation have income limits based on your location (up to $172,100 or $152,000). Apply through the Center for Energy and Environment and bring one bid from a licensed contractor to get started.

You can serve homeowners upgrading to high-efficiency heating, cooling, water heating, insulation, windows, and solar systems—with no income limits for solar, ASHP, insulation, and HPWH projects, expanding your addressable market. You must be properly licensed (MN Department of Labor registered) and meet specific equipment efficiency standards (e.g., AFUE ≥95% for gas furnaces, SEER2 ≥15.2 for central heat pumps); the homeowner will need your bid to apply, and some improvements like attic insulation require prerequisite air sealing work.

Minnesota Housing Finance Agency and the Department of Commerce partner with CEE to offer secured mortgage loans with flexible terms (up to 20 years) funded subject to availability; no income limits apply to solar, ASHP, insulation, and HPWH projects, while other improvements have income caps of $152,000–$172,000 depending on location. The program targets owner-occupied 1-4 unit primary residences and drives energy efficiency upgrades through contractor bidding requirements, efficiency standards tied to equipment ratings, and optional home energy audits to inform project selection.