NEC Minnesota Energy Loans Program
| Program Type | Low-interest Loans |
|---|---|
| Technologies | Photovoltaics, Solar Thermal and Energy Efficient projects |
| Amount | $2,000-$35,000 for homes, up to $60,000 for multi-family residences |
| Required Documentation | A lot. Read below |
| Official Web Site | http://www.thenec.org/energy_financing/index.php?strWebAction=article_detail&intArticleID=222 |
Minnesota’s Neighborhood Energy Connection (NEC) offers low-interest rate loans to homeowners and residential building owners for qualified energy efficiency and renewable energy projects for households with incomes of $96,500 or less and residential buildings with “fair market rent” not exceeding $1,119.
The loans have an interest rate of 5.75 percent, and repayment is set at $1,000 per year for a period of one to 20 years. Under the nonprofit’s program, the loan amounts range from $2,000 to $60,000. Homeowners can qualify for loans of up to $35,000 for approved projects. Most additional loan costs, which include the 1 percent origination fee, a credit report fee, and document preparing fees, can be rolled into the loan.
To be eligible for a loan under the program, home or building owners must first schedule an energy audit to determine what energy efficiency projects a home or building owner can take to reduce their energy use. The auditor may recommend additional insulation, weatherization, renewable energy projects and more. Under the program, at least one of the recommendations made by the auditor must be included in the application to qualify for the loan.
Although DIY jobs can qualify for the loan, NEC can provide assistance in finding a qualified contractor and will perform follow-up inspections at the building owner’s request.
The Loans are funded by Minnesota Housing and Finance Agency and are underwritten by the NEC. The loan is secured against the home or property as a mortgage.
