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Multifamily Energy Financing

Multifamily property owners know that lowering maintenance costs while increasing tenant satisfaction and retention can have a big impact on profitability. That’s why Michigan Saves has created a customized solution for multifamily energy improvements that provide value to both owners and tenants. The Multifamily Energy Financing Program is the perfect solution to make smart, easy, and affordable energy upgrades that increase savings and minimize maintenance costs. Start now to see results in your multifamily building and your balance sheet.

It’s as easy as 1-2-3

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Select a Contractor

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

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Apply for Financing

Your contractor will provide you with the application.

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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.

“I’m promoting to my owners that these energy investments will make them more money.”

— Leslie Etterbeek, property manager

Multifamily 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 multifamily housing developments reduce costs by financing energy-efficient lighting, heating and cooling systems, insulation, appliances, water heaters, and more. Property owners make the upgrades with the help of our authorized contractors and we provide affordable financing of $2,000 to $250,000 through an authorized lending partner.

What finance rates and terms are available?

All multifamily owners are eligible for rates ranging from 6% to 10% APR. Standard finance terms are 24, 36, 48, and 60 months. For applicants with great credit, terms up to 84 months may be available. Financing of $2,000 to $250,000 is available. For larger entities with multiple properties, the $250,000 limit is per property.

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 an authorized Michigan Saves contractor by filling out an application.

Eligible Improvements

The improvements listed below, subject to specified requirements where noted, are eligible for financing, for qualified commercial borrowers, under the Michigan Business Energy Financing Program. This list is subject to change. Measures that are not included on this list, such as air sealing, insulation, and related health and safety measures and more, may also qualify for financing, if they are recommended through a business 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 a business energy assessment.

Compact Fluorescent Fixtures
Compact Fluorescent Lamps Energy Star Screw-in or Pin Base
Exit Signs 5 watt or Energy Star Electroluminescent, T1 or LED
High-Intensity Discharge (HID) Conversion (interior) HID to Fluroescent, LED or Induction
High-Intensity Discharge (HID) Conversion (exterior) HID to Fluorescent
High Output Linear Fluorescents T12 to HO T8/ T5
High Performance (HP) & Reduced Wattage (RW) Linear Fluroescent w/ Electronic Ballast CEE qualified T12 to HP/RW T8
Light Emitting Diode (LED) Down Lights & Fixtures Energy Star
Light Emitting Diode (LED) Lamps Energy Star
Light Tube (daylighting)
Standard Linear Fluorescent Retrofit w/ Electronic Ballast & Reflectors T12 to T8 / T5
Boiler (gas) 86% AFUE – space heating;
82% AFUE – hot water or steam
Boiler Controls Oxygen trim, modulating burner, or water reset
Boiler Tune-Up Electronic flue gas analyzer must be used
Central AC (unitary, split system & rooftop units) 10.4 EER to 14.0 EER
Central AC (package terminal & heat pump) 12.5 EER Through-the-wall, self-contained units, < 2 tons
Chilled Water Reset (air cooled)
Chilled Water Reset (water cooled)
Chiller (air-cooled) IPLV 1.04 kW/ton
Chiller (water cooled)* IPLV 0.49 to 0.57 kW/ton
Duct Sealing
Furnace (gas) 90% AFUE
Furnace tune-up Annual preventative maintenance
Heat Pump (ground source) 17.0 EER
Heat Pump (water loop) 11.5 EER to 12.3 EER
Infrared Heaters Electric ignition and replacement for unit type heaters
Insulation (tank) 1″
Pipe Wrap R4
Programmable Thermostat
Room Air Conditioners Energy Star
Steam Trap Repair or Replacement
Variable Frequency Drives (VFD) on HVAC Fans and HVAC Pumps
Water Heater (electric) 0.93 EF
Water Heater (electric heat pump) 2.0 EF
Water Heaters (gas storage) 0.67 EF or 88% TE
Water Heater (oil storage) 0.82 EF
Water Heater (tankless) 0.82 EF Power vented
Anti-Sweat Heater Controls (ASHC)
Beverage Vending Machine Controls Passive infrared occupancy sensor
Curtain Doors For use with walk-in refrigerators or freezers
Door Gasket
ECM Motor for Refrigeration Case
Efficient Refrigerator Condenser
Evaporater Fan Motor Controls
Floating Head Pressure Controls
Freezers Energy Star
Fryer Energy Star
Griddles Energy Star
Hot Food Holding Cabinets Energy Star
Ice Machines CEE Tier 2
LED Lighting for Refrigeration Cases
Night Covers for Open Refrigerated Display Cases
Occupance Sensors for LED Refrigeration Cases 35 lumens per wat & 72 CRI
Oven (convection)
Oven (conveyer)
Pre-rinse Sprayers 1.6 gpm
Refrigerators Energy Star
Steam Cookers Energy Star
Vending Machines Energy Star
Vending Machine Controls
Ventilation Hoods (Engineered Commerical Kitchen) High efficiency, variable speed with controls
Walk-in Cooler/Freezer Electronically Commutated (EC) Motor Replacement Replace standard efficiency shaded pole or permanent split capacitor evaporator motor
High Performance Window Glazing SHGC <0.39 & U-value <0.57
Insulation (attic roof) Final insulation level must exceed R42
Insulation (flat roof) Final insulation level must exceed R24
Insulation (wall) Final insulation level must exceed R13
Reflective Roof (metal, asphalt or membrane) Energy Star
Window Film SHGC <0.39 & U-value <0.72
Windows Energy Star
Central Lighting Controls Automated controls with override capabilities
Daylight Sensor Controls
Demand Control Ventilation (DCV)
HVAC Energy Management System
Exterior Lighting Bi-level Controls w/Override
Intelligent Surge Protector Built-in plug load detection & control capabilities
Lighting Occupancy Sensors Passive infrared, ultrasonic or fixture integrated
Lighting Timers
Plug Load Occupancy Sensor
Switching Controls for Multi-level Lighting


No multifamily incentives are available at this time. Please check back often.

Case Study: French Quarter Apartments

Making Multifamily Homes More Enjoyable Places to Live

Leslie Etterbeek wants the best for her tenants. A property manager for LR Management, Etterbeek oversees more than a dozen properties and treats each one like her own home. This dedication is what prompted Etterbeek to sign up for energy-efficiency financing through Michigan Saves. She had the lightbulbs in the common areas changed to more energy-efficient LED bulbs. Already, Etterbeek is seeing a difference, saying the bulbs’ uniformity and the cost savings are the most noticeable changes. “It’s good for the long run,” Etterbeek said. “The light bulbs last, but there is also a nice aesthetic to them.”

Leslie cut her energy usage in half.