On-Bill Financing

Any Traverse City Light & Power residential customer.

Unsecured consumer loan. Notice of the loan is recorded with the county register of deeds. Any unpaid amount can be added to property tax bill and enforced through a tax lien foreclosure process.

If property is sold, the loan can stay with the property if agreed upon by buyer.

Qualifying energy-saving home improvements installed by an authorized contractor. A whole-home assessment with diagnostic testing is required for each financed project. Renewable energy measures are permitted. All renewable energy projects are required to have an approved net metering agreement in place with TCL&P before work begins.

$5,000–$30,000. Multiple loans per customer are allowed if the total amount financed does not exceed the maximum allowable loan amount. Multiple loans are consolidated into one loan at the current interest rate.

Up to 10 years or useful life of the measure, whichever is less.

3% interest rate for loan terms up to 120 months.

Customers repay the loan through a per-meter charge on the monthly TCL&P bill for electric services. The payment is considered part of the charges for electric services to the property. There is no penalty for early repayment.

Twelve consecutive months with no delinquencies on electric utility bill payment history. If an applicant has no more than one delinquency in the past 12 months, TCL&P may pre-approve the applicant if there is no more than one delinquency in the last 24 months or the applicant has a credit score of 640 or higher. Applicants should not have any delinquent taxes, bankruptcies within the last three years (from discharge), foreclosures, repossessions greater than $1,000, or unsatisfied money judgements.

The loan agreement is between TCL&P and the customer. Upon completion of the energy-efficiency improvements, TCL&P pays the contractor directly and the loan payments begin.

Single-family (one- to four-unit) homes. Rental/income properties are eligible provided the landlord meets program requirements.