Traverse City Light and Power On-Bill Financing Program

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

Program Overview

Traverse City Light and Power (TCLP) is a local electric utility that provides programs and services to improve the quality of life for Traverse City and its residents. TCLP created the On-Bill Financing Program to provide easy, affordable loans to homeowners in their electric service territory for qualifying energy efficiency and renewable energy improvements.

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. 

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.

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 is no credit score or income requirement to be eligible for the loan

Program Terms and Features

Eligible Properties: Single-family (1–4 unit) homes with electric service provided by Traverse City Light and Power.

Loan Type: Secured 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 Traverse City Light and Power 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 Energy Finance Solutions and Michigan Saves Authorized Contractor following the completion of a comprehensive whole-home energy assessment.

Loan Amounts: $5,000 - $30,000

Loan Term: 10 years or the useful life of the improvement, whichever is less.

Loan Rates: The interest rate on the loan is 3%.

Key Underwriting Criteria: Twelve consecutive months of utility bill payments without any late charges, no delinquent taxes, no bankruptcies, foreclosures or repossessions within three years (from discharge), and no unsatisfied money judgements.

Loan Agreement: The loan agreement is between Traverse City Light and Power and the customer. Upon completion of the energy efficiency improvements, EFS pays the contractor and the loan payments begin.


Eligibility requirements for a TCLP On-Bill Loan include:

  • Property must be located within the service territory of Traverse City Light and Power
  • TCLP must be the electric service provider 
  • TCLP customer must own the property and be the customer of record on the TCLP utility bill to qualify for the loan
  • 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
  • Rental properties are eligible (single family, 1-4 units); property owner 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: 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.

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 to access the contractor search feature on our website.

If you are a contractor, click here to find out how to become a participating contractor.

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