Ways to Save > Residential Incentives > Loans & Deferred Loans

Loans & Deferred Loans

We offer deferred loans for ductless heat pumps, window replacement, and insulation.

To qualify for a deferred loan, you must prove that 80% of your gross monthly income falls below the amounts listed in the following table. A 20% deduction credit will be applied to earned income and a 10% reduction to retirement income that is taxed at the time of payout.

If you are approved for a deferred loan, you will make no loan payments. However, you may have to pay a small fee depending on the type of work done to your home. The loan is paid back when the property is sold or changes ownership.

*Income qualifications are subject to change.

To apply for the deferred loan, you must provide income information for the past three months for each member of your household over the age of 18. Acceptable income documents include:

Paycheck stubs
Child support invoices
SSI/SSDI award letters
Retirement pension or IRA statements
Interest, dividends or annuities statements
DSHS documents such as Lifeline/GAU or TANF
State Labor and Industry Veterans Affairs statements
Unemployment compensation documents
Rental property income documents
Self-employment income verification

If any members of your household are older than 18 and listed as having zero or undeclared income, you must explain in a written letter how they currently meet their basic living needs such as food and shelter.

How to Apply for a Deferred Loan

1. Contact a Tacoma Power Participating Contractor to schedule a free estimate. They can also evaluate your home to help determine which of our programs best meet your needs. This contractor can also help you complete the Deferred Loan Application including determining if you will have to pay any costs for the work.

2. Review a checklist of required paperwork.

3. Complete the Deferred Loan Application, declaration or zero or unreported income (if applicable), and Tacoma Power Residential Programs Application and submit it in one of the following ways:

Have your contractor submit it directly to Tacoma Power on your behalf.
Email the application and all relevant documents to rebates@cityoftacoma.org.
Fax the application and all relevant documents to 253-502-8572.
Mail it to Tacoma Power, CEP – Main Lobby, 3628 S. 35th St., Tacoma, WA 98409-3192.
Drop it off in the Conservation Lobby at the TPU main office at 3628 S. 35th St., Tacoma.

It usually takes four to six weeks to process your application. For assistance, please call 253-502-8363.

Zero Interest Residential Loans

If you own a home or residential rental up to four units, you may qualify for a seven-year, zero-interest loan for any of the following energy-efficiency projects:

Loan details and requirements:

The installation address must be served by Tacoma Power.
The property owner must be the owner of record for the installation address.
Project pre-approval from us is required.
You must show good credit history, including:
- A Tacoma Power account with five or fewer credit points. (Credit points are based on your TPU payment history and are given for late or returned payments, credit-related service disconnection or defaulting on a payment arrangement.)
- Having no outstanding debt with TPU or the City of Tacoma.
Tacoma Power has the right to deny you a loan based on your payment history, outstanding debts or insufficient proof of ownership. If you are denied a loan, a TPU representative will contact you with an explanation.

How to Apply for a Loan*

1. Contact a Tacoma Power participating contractor to schedule a free estimate. They can also evaluate your home or property to help determine which of our programs best meet your needs.

2. Review the checklist of required paperwork.

3. To apply, you may need to provide additional paperwork including:

Contractor bid for each type of work to be completed.
Proof of ownership documents. If the name on the Statutory Warranty Deed does not match the name on the Tacoma Power account and/or the name listed on the Pierce
County Assessor data, additional documentation is required.
Additional information may be needed to show proof of ownership, for example:
- Quit Claim Deed with the grantor’s Deed of Trust or Statutory Warranty Deed.
- Divorce Decree stating who maintains ownership of the property.
- Death Certificate, and/or legal instrument granting ownership to the survivor.
- Certification of trust, showing the trust’s beneficiary and trustee signing authority.
- Certified copy of the marriage certificate, driver’s license and social security card.

4. Complete the appropriate application:

5. Submit the application in one of the ways below:

Have your contractor submit directly to Tacoma Power on your behalf.
Email the application and all relevant documents to rebates@cityoftacoma.org.
Fax the application and all relevant documents to (253) 502-8572.
Mail the application and all relevant documents to Tacoma Power, Customer Energy Program, Main Lobby, 3628 S. 35th St., Tacoma, WA 98409-3192.
Drop the application off in the Conservation Lobby at the TPU main office at 3628 S. 35th St., Tacoma.

It usually takes four to six weeks to process your application. For assistance, please call (253) 502-8363.

Once you are approved for a loan:

First, we will mail you three documents:

Customer Loan Agreement
Promissory Note
Notice of Lien

The Promissory Note and Notice of Lien also need to be notarized, which can be done in our office. Once signed and notarized, please return them to TPU.

Once we receive the documents, we will issue you a Notice to Proceed. It is then time to schedule a time for your contractor to complete the installation. Once the installation is complete, the contractor will submit your final documentation to us on your behalf.

After the project is complete, inspected and approved by us, payment for the work will be made to the contractor on your behalf. A loan account is then established in your name and a lien is filed with the Pierce County Auditor.

You should receive your first loan statement four to eight weeks after your project passes inspection. The statement is not included in or with your utility bill. There are no penalties for early repayment. When the loan is paid in full, the lien is removed from your property.

For help with any of the steps above, please contact us at (253) 502-8363 or rebates@cityoftacoma.org.

Other loan details:

You can combine multiple projects into one monthly payment. Your final loan and payment totals will be determined by the projects you choose to finance. Loan amount examples include:
- A loan of $1,500 has an estimated monthly payment of $20.
- A loan of $3,000 has an estimated monthly payment of $35.
- A loan of $5,000 has an estimated monthly payment of $60.
If you receive a loan for a project, you cannot apply for rebates and/or grants for the same project.
Your loan must be repaid in equal monthly payments over a period of 84 months. There is no penalty for early loan payoff. Loan payments are billed separately from your utility bill.
Loan balances must be paid at closing if you sell your home.
Loan contracts are not transferable or assumable.
As soon as your project is finished, a lien is placed on your home until the loan is paid off. Before refinancing your home, please contact Customer Service at (253) 502-8600 or conservationloans@cityoftacoma.org to discuss your options.

* Program requirements and rebates are subject to change without notice. Tacoma Power does not endorse any particular contractor, retailer, manufacturer or product. Tacoma Power may require additional information before making the final decision whether to approve the conservation loan. The loan filing fee may change at any time. City of Tacoma employees are eligible for the loan.

Click here for information about commercial loans.