Incentives in Minnesota for energy efficiency initiatives have become increasingly prevalent, offering a variety of rebates and incentives to commercial properties or buildings aiming to enhance their energy efficiency. These energy efficient rebates present a valuable opportunity for businesses across the state to reduce their environmental footprint and realize significant cost savings on energy expenditures. With a range of programs and initiatives in place, including rebates in Minnesota tailored explicitly for commercial properties, businesses can invest in sustainable practices while benefiting from financial incentives.
Energy Savings Fund for Non-Profits
Nonprofit organizations aiming to reduce their energy consumption can use allocated funds from CEE and the Minnesota Division of Energy Resources, offering loan amounts of up to $100,000 with flexible terms of up to 10 years. To qualify, borrowers must be nonprofit entities exempt from taxes under section 501(c)(3) of the Internal Revenue Code or entities leasing eligible facilities to nonprofits. Eligible facilities include existing buildings occupied by nonprofit entities either entirely or partially. Loan terms feature competitive rates, starting at 3.75% (4.22% APR) for up to 5 years and 5.5% (5.80% APR) for up to 10 years, with applicable closing fees. Eligible improvements encompass modifications to existing buildings primarily aimed at reducing energy consumption, with a requirement for a useful life exceeding the simple payback period, which must range from two (2) to ten (10) years.
Farm Opportunity Loan Program
The Farm Opportunity Loan Program, administered through the Rural Finance Authority (RFA), offers financing for equipment purchases to enhance crop or livestock value, implement best management practices, reduce agricultural inputs for environmental improvement, and boost on-farm energy production. However, the loan cannot cover expenses related to seed, fertilizer, fuel, or other operational costs, and refinancing existing debt is not permitted. To apply, farmers must collaborate with their local lender, who will then seek RFA participation upon completing the application process and having a Master Participation Agreement with the RFA. Eligibility requires the farmer to be a resident of Minnesota, the principal operator of the farm, able to demonstrate loan repayment capability, and possess appropriate feedlot registration or intend to use the loan to meet registration requirements. While all lending institutions can participate, their involvement is voluntary, subject to agreements with the RFA. Loan terms allow for RFA participation up to 80% of the project or equipment cost, with a maximum of 45% of the loan amount or $100,000 per individual (or $250,000 for groups of four or more individuals). Loans have a maximum term of ten years, with the RFA offering a 2% interest rate, subject to annual review and adjustments. Farmers can benefit from a 1% interest rate reduction if the loan is used to purchase equipment associated with a safety course, provided proper documentation is submitted upon completion of the training.
If your organization is looking for incentives and rebates outside Minnesota, we suggest reviewing our other blogs to find your area and utility provider. If you do not see your area covered in our blog feed, please schedule a call with one of our incentive and rebate experts and ask them to find your rebates!
Rev it Up Program
The Minnesota Department of Commerce has established a revolving loan fund (RLF) to provide funds to public entities for energy audits or renewable energy feasibility studies. Eligible applicants include state agencies, counties, cities, towns, school districts, and special taxing districts. Public entities must submit either an executed Joint Powers Agreement under the Guaranteed Energy Savings Program (GESP) or Local Energy Efficiency Program (LEEP) or a proposal from a service provider for an energy audit or feasibility study. Eligible project costs cover direct expenses related to energy audits or renewable energy feasibility studies conducted under GESP or LEEP programs or as approved by Commerce. Loan applications are accepted on a first-come, first-served basis until program funds are depleted, with additional loans becoming available as repayments are made.
Energy Efficient Rebates in MN with Incentive Rebate360
Energy-efficient rebates available for commercial properties or buildings in Minnesota represent a significant step towards fostering sustainability and reducing energy consumption in the state. These incentives not only provide financial assistance to businesses seeking to upgrade their infrastructure but also contribute to a more environmentally friendly and energy-efficient future. Incentive Rebate360 can be your guide to finding rebate opportunities in Minnesota. Contact us by calling 480-653-8180, emailing [email protected], or schedule a call that fits your needs by clicking the button below!