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Loans & Deferred Loans

How to Qualify for a Deferred Loan

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.

Loans & Deferred Loans

*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:

  1. Have your contractor submit it directly to Tacoma Power on your behalf.
  2. Email the application and all relevant documents to
  3. Fax the application and all relevant documents to 253-502-8572.
  4. Mail it to Tacoma Power, CEP – Main Lobby, 3628 S. 35th St., Tacoma, WA 98409-3192.
  5. 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
  • 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

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 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.

Commercial Loan Guidance


TPU and the City of Tacoma authorized the use of bond funding to finance zero-percent interest loans (City Ordinance No. 23165) for residential customers in 1984 and commercial customers in 1990 to implement cost-effective conservation. Unlike traditional financing, Tacoma Power’s zero-interest loans are intended to support the acquisition of energy savings.

Commercial/Industrial (C/I) loans are 5-years zero-interest loans from $1,000 to $100,000 per customer or 70% of the project costs (whichever is less).


  • Project must be enrolled in one of Tacoma Power’s C/I energy efficiency programs.
  • Applicant must apply for the loan before project installation.
  • Loan disbursement does not take place until the project is completed and signed off by the assigned Tacoma Power C/I staff member. Loan financing is not provided in advance.
  • C/I loans are for energy efficiency projects in existing buildings only. Eligible costs include removal of old equipment and new equipment purchase and installation.
  • New construction, major building renovation requiring a building permit or fuel switching projects are not eligible.
  • C/I loans can be used with Tacoma Power’s incentives. The combination of the loan and incentive must be cost-effective, and all Tacoma Power funding will be less than or equal to 100% of the project costs.

Application process and review

  • Loan application process typically takes 30-45 days depending on documentation needs.
  • For loans less than $25,000 there is a $250 application fee.
  • For loans $25,001 to $100,000 there is a $500 application fee.
  • Loan must be:
    • Secured by sufficient collateral (ex., surety bond),
    • Customer must document sufficient resources for repayment, and
    • Include a real estate lien on the property or affected equipment (fixture filing).
  • C/I loan application and financial documentation is reviewed by a third part loan underwriter (underwriter costs borne by Tacoma Power between $1,000-$2,000 each) who makes a recommendation to the third person Tacoma Power C/I Loan Committee.
  • The Loan Committee decides by majority vote whether Tacoma Power should approve the loan application. Acquisition of cost-effective savings and ability to repay are critical terms.
  • Loan agreement, promissory note and other closing agreements are prepared and sent to the successful loan applicant for signatures.
  • There are closing fees in addition to the application fee for recording and if necessary appraisal fees (typically less than $500) payable after loan is recorded.
  • Repayment notices are sent monthly, separately from the customer’s utility bill, and start approximately 45 days after the loan disbursement takes place.
  • C/I loans are not assumable.

Before you apply

Contact John Walkowiak at 253-502-8534 or email for more information before you begin your application.

Application for projects up to $25,000

Application for projects from $25,001 – $100,000