Nebraska Public Power District and the Nebraska Energy Office Offer 2.5% Loans for Heat Pumps
These NPPD Customers are Eligible for 2.5% Interest Loans
Beginning April 1, 2009, 2.5% Dollar and Energy Saving Loans will be made available to customers in the Nebraska Public Power District’s service areas who are Nebraska residents and will be making the qualifying improvements on property located in Nebraska.
Customers may apply for a 2.5% Dollar and Energy Saving Loan through Nebraska lenders for residential air source and ground water or ground coupled heat pumps. Qualifying thermostats and back-up natural gas or propane furnaces with a 90 AFUE rating or higher may be included in the project costs. Standards for the heat pumps, programmable thermostats and back-up natural gas or propane furnaces are the same as those listed on the loan program’s Heating, Cooling and Water Heating Projects Application (Form 3). This same form is to be used in submitting a borrower’s application to the Energy Office for one of the 2.5% Dollar and Energy Saving Loans. The entire process for obtaining one of these loans is identical to the existing Dollar and Energy Saving Loans and all requirements relating to terms, fees, borrower maximums, emergency approvals and collection procedures will be the same.
The 2.5% Dollar and Energy Saving Loans are being made possible through the Nebraska Public Power District’s EnergyWise Program. This program is infusing dollars into the Energy Office’s loan program to provide the funds to purchase an additional 25% of a qualifying loan from the lender. This will allow the Energy Office to purchase 75% of the qualifying loan at zero interest while allowing lenders to still realize a 10% return on the remaining 25% of the loan they hold. Therefore, 25% of the 2.5% Dollar and Energy Saving Loans made in conjunction with the Nebraska Public Power District’s EnergyWise Program will be held by the lender and 75% by the Energy Office. Customers choosing the 2.5% interest loan waive the right for receiving an Energy Wise heat pump incentive from their utility.
The Energy Office and the Nebraska Public Power District, in partnership with its wholesale and utility customers, hope these lower interest rate heat pump loans will be beneficial to borrowers seeking to be more efficient in their energy use.
In addition to NPPD’s retail customers (those who pay NPPD directly for their electricity) a number of cities and utilities are “wholesale” customers and those who receive their electricity from these sources are also eligible for the NPPD 2.5% heat pump loans. Those “wholesale” cities and utilities are: