Michigan Saves Commercial Building Financing

Non-profit, for-profit, public sector, or multifamily. Every building has expenditures associated with energy.

Commercial Building Loan Program

Every building you operate has expenditures associated with energy. Michigan Saves has helped hundreds of organizations, including businesses, multifamily, public sector, municipal buildings, and more, invest in improvements that reduce future increases in energy prices, maximize your opportunity to bank excess maintenance costs, and provide savings via smaller, more predictable utility bills. Start now to see results in your building and your balance sheet.

Now Available

Special financing rates available for qualifying, energy efficiency measures for Consumers Energy and DTE Energy commercial and municipal customers

Learn More >

It’s as easy as 1-2-3

The number 1 in a green circle

Select a Contractor

Select a Michigan Saves authorized contractor to get an estimate on qualifying energy improvements.

The number two in a green circle

Apply for Financing

Your contractor will provide you with instructions to apply by phone.

The number three in a green circle

Approval

Once the financing is approved, your contractor installs the upgrades and is paid directly by the lender—after the work is completed to your satisfaction.

Amy Zane, owner of Amy Zane Store and Studio

“We would not have been able to afford all the lights upfront. But because of the financing option, we’re able to save money and make our art look spectacular, too.”— Amy Zane, Business Owner

Commercial Building Financing Frequently Asked Questions

What is Michigan Saves financing?

Michigan Saves financing is financial capital made available to customers through a network of lenders that offer favorable terms based on a negotiated contract. This program helps Michigan organizations reduce costs by financing energy efficient lighting, heating and cooling systems, insulation, appliances, water heaters, and more. Upgrades are made with the help of our authorized contractors and an authorized lending partner.

What finance rates and terms are available?

Businesses, multifamily owners, and other commercial buildings are eligible for financing of $5,000 to $250,000 at rates starting at 6.99% APR. Standard finance terms are 24, 36, 48, and 60 months. For applicants with great credit, terms up to 84 months may be available. For amounts greater than $250,000, please contact Todd O’Grady for financing options rates starting at 5.75% APR and terms up to twelve years.

All publicly owned buildings, such as municipal offices, public schools, libraries, and hospitals, are eligible for rates ranging from 3% to 5% APR. Standard terms are 24, 36, 48, and 60 months. Installment purchase agreements are available from $5,000 to $10 million.

What can I use the financing for?

Most energy improvements can be financed, but a full list of eligible improvements is available here. The most common commercial improvements include LED lighting, HVAC systems, insulation, and new mechanical equipment like occupancy sensors and electronically communicated motors.

Can I do the work myself?

Michigan Saves makes it easy to process authorized contractors and easy for your own contractor to become authorized. Whichever you choose, you can work with people you are comfortable with. Michigan Saves screens energy auditors and contractors to ensure they have applicable licenses, credentials, and insurance, and understand the financing process. If you are already working with or know a contractor, they can become authorized by Michigan Saves by completing an application.

Eligible Improvements

The improvements listed below—subject to specified requirements where noted—are eligible for financing for qualified borrowers under the commercial financing program. This list is subject to change. Measures that are not included on this list may also qualify for financing if they are recommended through an energy assessment conducted by a certified professional. See the Michigan Saves list of authorized contractors to find a certified energy auditor near you if you are interested in receiving an energy assessment.

Legend

Read More


AFUE: The annual fuel utilization efficiency is a thermal efficiency measure of space-heating furnaces and boilers. Furnaces are rated by the AFUE ratio, which is the percent of heat produced for every dollar of fuel consumed. The higher the AFUE rating, the lower the fuel costs. Any furnace with an efficiency of 90 percent or higher is considered high-efficiency and carries the ENERGY STAR® label.

BTU: The British thermal unit is a traditional unit of heat, which is defined as the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit.

CEE: The Consortium of Energy Efficiency creates product specifications for advanced levels of energy performance. A CEE tier-one label is the equivalent of the ENERGY STAR® label. Products with CEE tier-two, -three, or -four labels would represent products that achieve energy savings above and beyond the ENERGY STAR® label.

COP: The coefficient of performance of a heat pump, refrigerator, or air conditioning system is a ratio of useful heating or cooling provided to work required. Higher COPs equate to lower operating costs.

EER: The energy-efficiency ratio is a metric used to measure how much cooling a system puts out for each unit of energy it consumes. EER is calculated by dividing an air conditioning unit’s British thermal unit (BTU) rating over its wattage. The higher the EER rating, the more efficiently the air conditioner operates. Any air conditioning unit with an efficiency of 12 EER or higher is considered a high-efficiency unit and carries the ENERGY STAR® label.

EF: The energy factor indicates a water heater’s overall energy efficiency based on the amount of hot water produced per unit of fuel consumed over a typical day. The higher the energy factor, the more efficient the water heater.

ENERGY STAR®: ENERGY STAR® is a government program that promotes energy-saving improvements by providing consumers with objective information about products. The ENERGY STAR® label indicates that a product uses less energy than other products in that category.

GPF: Gallons per flush is the measure of flow from a toilet. The lower the GPF of a toilet, the greater the savings of water.

GPM: Gallons per minute is the measure of flow from a showerhead or faucet. The lower the GPM of a faucet or showerhead, the greater the savings of water.

Induction: Induction lighting is a proven lighting technology that has been around for over 100 years. Induction lamps differ from fluorescent lamps in that they do not use internal electrodes but use a high-frequency generator with a power coupler. The generator produces a radio frequency magnetic field to excite the gas fill.

LED: Light emitting diodes are up to 80 percent more efficient than traditional lighting, such as fluorescent and incandescent lights. Of the energy in LEDs, 95 percent is converted into light and only 5 percent is wasted as heat.

Level 2: Level 2 charging refers to the voltage that the electric vehicle charger uses (240 volts). Level 2 chargers come in a variety of amperages typically ranging from 16 amps to 40 amps. The two most common level 2 chargers are 16 and 30 amps, which also may be referred to as 3.3 kW and 7.2 kW respectively. These two amperages are the most common because they match the onboard charger on many current electric vehicles.

LPW: Lumens per watt measures the efficacy of an LED bulb. Higher LPW values indicate more efficient LED bulbs.

R-value: An insulating material’s resistance to conductive heat flow is measured or rated in terms of its thermal resistance or R-value—the higher the R-value, the greater the insulating effectiveness.

SEER: The seasonal energy-efficiency ratio is a metric used to measure how much cooling a system puts out for each unit of energy it consumes. The higher the SEER rating, the more efficiently the air conditioner operates. Any air conditioning unit with an efficiency of 15 SEER or higher is considered a high-efficiency unit and carries the ENERGY STAR® label.

SF: The solar factor measures the percentage of heat that passes through a solar panel’s glass. The higher the solar factor, the greater the solar gain for solar-thermal water heating units.

SHGC: The solar heat gain coefficient is the fraction of incident solar radiation admitted through a window, both directly transmitted and absorbed and subsequently released inward. SHGC is expressed as a number between zero and one. The lower a window’s solar heat gain coefficient, the less solar heat it transmits.

TE: Thermal efficiency is an efficiency measure for space-heating boilers, in lieu of the AFUE rating, that exceed 300,000 BTUs per hour. TE is also used to measure the efficiency of gas-fired water heaters that exceed 75,000 BTUs per hour.

U-factor: The rate of heat loss is indicated in terms of the U-factor (U-value) of a window assembly. The lower the U-factor, the greater a window’s resistance to heat flow and the better its insulating properties.

Incentives

Who’s Eligible? Details Eligible Improvements Promotional Flyer and Details Promotion Ends
Consumers Energy commercial customers – 1.99% APR financing for 24 months up to $50,000 Custom and prescriptive gas and electric projects, including energy-efficient lighting, refrigeration, heating and cooling equipment and more Click here While funds available through 11/30/2019
DTE Energy commercial customers – 1.99% APR financing for 24 months up to $50,000

– 2.99% APR financing for 60 months up to $150,000

Custom and prescriptive gas and electric projects, including energy-efficient lighting, refrigeration, heating and cooling equipment and more Click here While funds available through 11/30/2018
DTE Energy food service customers – 0% APR financing for up to 36 months up to $50,000 Specific eligible commercial kitchen products sold by authorized participating dealers and distributors Click here While funds available

Customer Stories

City of Fraser

Tabernacle Missionary Baptist Church

Dearborn Country Club

Amy Zane Store & Studio

Baraga Lakeside Inn

Liberty Food Center

Meadow’s Fine Wine & Liqour

French Quarter Apartments