Michigan Saves is a non-profit that offers financing options for energy efficiency improvements throughout Michigan. The Home Energy Loan Program was started with seed funding from the Michigan Public Service Commission. Loans are available for owner-occupied, single-family homes with 1-4 units (primary or secondary residences) for energy efficiency improvements. Multi-unit homes are only eligible if the owner resides in one of the units. In addition to energy efficiency improvements, solar thermal, solar water heaters, and PV systems between 1 kW and 20 kW in size are eligible for loans.
Loan applications can be completed over the phone or internet through an authorized contractor. Applicants must have a credit score of 640 or higher, and have a debt-to-income ratio of less than 50%. Term lengths are flexible (between 12 and 120 months) and depend on the loan amount and the borrower's preference.
Participating lenders offer an unsecured loan for amounts between $1,000 and $30,000, at a fixed annual percentage rate (APR) no higher than 6.99%, with no prepayment penalty. Statewide coverage of 4.99% APR is now available. Select areas offer as low as 4.25% APR based on credit. Loan terms are one year for every $1,000 up to $4,999. For loans $5,000 and higher, 10-year terms are an option.