Energy Investment Loan Program (Minnesota)

From Open Energy Information


Last modified on May 24, 2011.

Financial Incentive Program

Place Minnesota

Name Energy Investment Loan Program
Incentive Type State Loan Program
Applicable Sector Schools, Local Government, Hospitals
Eligible Technologies Custom/Others pending approval, Solar Water Heat, Solar Space Heat, Solar Thermal Process Heat, Wind, Biomass, Geothermal Heat Pumps, Solar Pool Heating
Active Incentive No
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs
Amount Buys down up to 50% of the loan principal to 0% interest for any specific measure with a simple payback of 10 years or less

Maximum Incentive 50% of total project cost, up to 500,000

Program Budget $8 million revolving loan fund

Terms Up to first five years of loan
Program Administrator Minnesota Department of Commerce

References DSIRE[1]


Minnesota's Energy Investment Loan Program will buy down up to 50% of the loan principal to 0% interest for any specific renewable energy, energy efficiency or energy conservation "capital improvement" measure with a simple payback of 10 years or less in an existing building. Minnesota cities, counties, townships, hospitals and K-12 schools are eligible for this program.

Each specific project must pass a 10-year simple payback threshold based on total costs and energy savings, energy payments and/or incentives from other sources. (Project-averaging of multiple measures with more and less than a 10-year simple payback is not allowed). There are no specific improvements designated for energy efficiency, as long as a measureable amount of energy is conserved as a result of the project.

A loan application must include a technical analysis for each proposed energy-saving capital improvement. While projects involving energy efficiency and energy conservation measures, especially lighting retrofits, are most commonly supported, renewable energy projects are eligible and have been funded (including one 225 kW wind turbine and approximately nine wood-fired boilers).

Renewable-energy projects most likely to receive support through this program include:

  • Wind energy in excellent wind resource areas;
  • Ground-source heat pumps for buildings heated by electricity, and/or natural gas users with large year-round heating and cooling loads;
  • Solar-thermal air preheating systems;
  • Solar hot-water systems offsetting electric space, hot water or pool heating; and/or
  • Projects receiving grants or incentives from other sources that reduce the simple payback to less than 10 years.
The program is designed as an $8 million revolving loan fund with no set expiration date.  If the $8 million fund is fully utilized, additional projects must wait for loan commitments to expire before additional funds are made available.  Program funding was available as of February 2005.

Authorities (Please contact the if there are any file problems.)

Authority 1: Minn. Stat. § 216C.09
Date Enacted 1983

Authority 2: Minnesota Rule, Chapter 7606

Incentive Contact

Contact Name Jeremy deFiebre
Department Minnesota Department of Commerce
Division Office of Energy Security
Address 85 7th Place East, Suite 500
Place St. Paul, Minnesota
Zip/Postal Code 55101
Phone (651) 297-1221

Contact Name Amy Bicek
Department Minnesota Department of Commerce
Division Energy Division
Address 85 7th Place East, Suite 600
Place St. Paul, Minnesota
Zip/Postal Code 55101-3165
Phone (651) 296-2429


  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"