Holland On-Bill Loan Program

Loan Benefits | Program Terms and Features | Eligibility | How to Apply

Program Overview

Holland Energy Fund, Inc. (HEF) was incorporated as a nonprofit corporation to facilitate and finance aspects of the City of Holland's comprehensive, long-range Community Energy Plan to become a world-class leader in energy security, affordability, sustainability, and efficiency.

The plan includes several large-scale projects. One such project is to substantially increase the energy efficiency of Holland's 7,400 single-family homes. Energy efficiency investments are a cost-effective means to decrease energy consumption, enhance building comfort, and reduce utility bills.

Despite the benefits of energy efficiency investments, high up-front costs can be a significant barrier to investing in home energy improvements. A program that allows customers to repay financing for these improvements by adding incremental payments to their utility bills is one way to overcome this cost barrier. Non-traditional underwriting criteria also help to remove a barrier.

On-bill financing generally refers to a financial product that is serviced by, or in partnership with, a utility. The energy efficiency improvements are repaid by the homeowner on his or her monthly electric bill.

For an overview of the loan program and application process, please click here.

Loan Benefits

  • Immediate bill savings! Efficiency upgrades decrease your energy consumption and your utility bills.
  • Loan payments can transfer to the next homeowner.
  • Making changes to your home now will help sustain our environment for the future, while increasing the comfort and value of your home.
  • There are no credit score or debt-to-income ratio checks.

Program Terms and Features

Eligible Properties: Single-family (1–4 unit) homes within the City of Holland

Loan Type: Unsecured loan that may be added to your tax bill and enforced against the Property through the tax lien foreclosure process in the same manner and with the same priority as the charges for your electric service and real property taxes. Notice of the loan is recorded with the register of deeds for the county in which the property is located, and the obligation to pay the loan payments runs with the land and is binding for future customers contracting for electric service to the property. Multiple loans per customer are allowed and consolidated into one loan if the total amount financed does not exceed the maximum allowable loan amount (below).

Repayment Mechanism: Customers will pay back the loan through a per-meter charge on the monthly Holland Board of Public Works (BPW) bill for electric services. The payment is considered part of the charges for electric services to the property.

Eligible Improvements: Energy-saving home improvements listed in the Michigan Energy Measures Database and installed by a Michigan Saves Authorized Contractor following the completion of a comprehensive whole-home energy assessment.

Loan Amounts: $5,000 - $30,000

Loan Term: Minimum of 5 years, and maximum of 15 years or life of the measure, whichever is less.

Loan Rates: The interest rate for loans with terms of 5-10 years (60 – 120 months) is 4.99%. The interest rate for loans with terms greater than 10 years and up to 15 years (121 – 180 months) is 5.99%.

Key Underwriting Criteria: Twelve months with no delinquencies on electric utility bill payment history, no delinquent taxes, no bankruptcies within three years (from discharge), and no unsatisfied money judgements.

Loan Agreement: The loan agreement is between the Holland Energy Fund and the customer. Upon completion of the energy efficiency improvements, HEF pays the contractor directly and the loan payments begin.


Eligibility requirements for a HEF On-Bill Loan include:

  • Property must be located within the City of Holland.
  • Holland BPW must be the electric service provider and customer must have at least twelve months of on-time payment history with Holland BPW.
  • The loan application must be in the homeowner’s name (as it appears on the title), which needs to match the name on the Holland BPW account.  
  • Applicant must meet underwriting criteria. (See Key Underwriting Criteria above for details.)
  • Applicant must have a home energy audit completed prior to applying for the loan. (See Comprehensive Energy Assessment below.)
  • Rental properties are eligible (single family, 1-4 units); landlord must hold the account for electric service and meet all other loan eligibility requirements.

Customers who qualify for free or lower-cost weatherization or retrofit programs are encouraged to take advantage of those programs before seeking loans through this program. Examples of such programs include: the Weatherization Assistance Program administered by the state and local community action agencies; the Michigan State Housing Development Authority Property Improvement Program; utility income-qualified weatherization programs; the U.S. Department of Agriculture loan and grant programs; City of Holland Home Repair Program; City of Holland Central Neighborhood Enhancement Program; and the City of Holland and Good Samaritan Ministries Landlord Energy Efficiency Upgrade Program. A summary of the eligibility requirements for these programs is provided in Appendix C of the Holland On-Bill Loan Program Implementation Guide.

Customers are encouraged to contact individual programs for detailed eligibility requirements and current
program information.

Contractor Locator

To find an authorized contractor under this loan program please click here, or access the contractor search feature on our website.

How to Apply

A) Apply online

Complete and submit the online application.

B) Print the application

Download and complete the application. Mail your application to EFS at the address found at the bottom of this page.

C) Request an application packet by mail

You may request to receive an application packet by mail by calling 800.681.2095.
Additional documentation will be requested with your application. This documentation may be uploaded to your account file after you apply online, or mailed or faxed to EFS with your application to the below address or fax number. 

Submit your application by mail or fax to:
Energy Finance Solutions
431 Charmany Drive
Madison, WI 53719
Fax: 608.249.5788