Financial Incentives

Minnesota businesses have access to a wide range of financial incentives to help pay for energy efficiency upgrades -- some which can drastically speed up the payback time. Here's a look at what financial incentives are available. Feel free to give us a call at (651)292-4653 if you have any questions about the incentives, eligibility or how to pursue them.

Utility Rebates
Many electric and gas utilities serving Minnesota offer rebates to commercial customers making common energy improvements, such as installing energy-efficient lights, heating and cooling systems, and motors, as well as sometimes custom improvements. Details of the rebate programs vary widely, but the rebates can be worth 40% or more of the improvement project's cost.

Here are some useful links about current rebate programs offered by utilities serving Minnesota. For municipal utilities or others not listed, call the utility directly, give Energy Smart a call, or check out the helpful Database of State Incentives for Renewables and Efficiency (DSIRE).

Xcel Energy:

Conservation Program Overview (Click on "Conservation Rebates & Incentives" on left for full list of rebate programs.)

Lighting Efficiency Program

Heating Efficiency Program

Cooling Efficiency

Minnesota Power:

Rebates & Energy Savings Tools

Otter Tail Power:

Rebates Programs

Alliant Energy (Interstate Power & Light):

Minnesota Business Incentive Programs

Great River Energy Member Cooperatives: (Rebate programs differ by co-op; some require calling the co-op for details.)

Agralite Electric Dakota Electric Lake Region Electric Redwood Electric
Arrowhead Electric East Central Energy McLeod Cooperative Power Runestone Electric
BENCO Electric Federated Rural Electric Meeker Cooperative South Central Electric
Brown County Rural Electric Goodhue County Cooperative Mille Lacs Energy Co-op Stearns Electric
Connexus Energy Itasca-Mantrap Cooperative Minnesota Valley Electric Steele-Waseca Cooperative
Cooperative Light & Power Kandiyohi Power Cooperative Nobles Cooperative Todd-Wadena Electric
Crow Wing Power Lake Country Power North Itasca Electric Wright-Hennepin Cooperative

 

Grant Opportunities
Many entities around Minnesota offer grant opportunities for businesses making energy-efficiency improvements. Some programs are short-term and have a specific deadline, while others are ongoing. Some are offered by a local government or the state, while others are available through non-profit organizations, economic development groups or utilities. You can stay up-to-date on government-funded grant opportunities on the Minnesota Office Energy Security Web site, or by signing up to receive updates by e-mail.

Here's a look at some current grant opportunities:

Minnesota Grants for Energy Improvements to Commercial & Industrial Buildings

  • For commercial and non-profit building & property owners planning significant energy improvements by mid-2011
  • Requires recipients to match at least 50% of the project's estimated cost
  • May cover all sorts of energy upgrades, including lighting, HVAC, motors and industry-specific
  • Notice of intent due by Jan. 29, 2010; proposals and applications due by Feb. 12, 2010

USDA Rural Energy For America Program (REAP)

  • For rural small businesses and agricultural producers who need financial assistance
  • Eligible projects include energy-efficiency improvements and renewable energy
  • Grant assistance ranges from $1,500 to $750,000, but cannot exceed 25% of total project costs
  • Program also offers guaranteed loans that may cover up to 75% of project costs

Minneapolis Great Street Facade Improvement Program

  • For building owners & business owners located in the following areas of Minneapolis:
    • On Excelsior Blvd., from 32nd St. to Lake St.
    • On Lagoon Ave., from Humbolt Ave. to Dupont Ave.
    • On Lake St., from Pillsbury Ave. to Mississippi River
    • On West Lake St., from Excelsior Blvd. to Pillsbury Ave.
    • Matching grants up to $5,000 for qualified facade improvements (i.e. energy efficient windows, outdoor lighting, etc.

The Duluth Superior Area Community Foundation

  • 501(c)3 organizations in the seven counties of northeast Minnesota
  • Fund for the Environment: reflects growing community concern and awareness of our interdependency with our environment.

Utility grants: Some utilities also offer grants for commercial customers performing energy-efficiency improvements. For example, Minnesota Power's PowerGrant program awards grants to commercial / industrial / agricultural customers who use innovative technologies, improve manufacturing processes, undertake renewable electric energy projects. PowerGrant amounts are based on kilowatt hours saved.

Some useful links to utility grant program information for Minnesota businesses:

Federal Tax Credits
In some cases, federal tax credits are also available for energy efficiency improvements at businesses. Extended through 2013, this credit is called The Energy Efficient Commercial Building Tax Deduction.

Low-Interest Loans
Some utilities and other organizations offer standard and reduced-rate loans. For example, Otter Tail Power's DollarSmart financing program provides low 2.9% interest loans in lieu of rebates; they also offer standard 7.9% interest rate loans. Any loan programs offered by a utility are applicable to customers in their service territory only.

Some useful links to utility loan program information for Minnesota businesses:

Other Resources
Other kinds of financial incentives and funding opportunities may be available through local financial institutions or organizations, such as local chambers of commerce. Here are some helpful resources on energy-efficiency funding:

Database of State Incentives for Renewables and Efficiency (DSIRE)

Energy Star Financial Resources page for the state of Minnesota

Minnesota Office of Energy Security Web site