Powering progress in rural communities: The value of Great River Energy's E3 Commercial Financing Program

As federal funding and economic conditions remain uncertain, Great River Energy is doubling its commitment to rural progress. Through its Energy Efficiency and Electrification (E3) Commercial Financing Program, Great River Energy provides a stable, affordable financing tool to help member-owner cooperatives and their communities invest in high-efficiency equipment and innovative electrification projects. The result? Long-term energy savings, economic resilience and measurable carbon reduction.

What is the E3 Program?

The E3 Commercial Financing Program is designed specifically for Great River Energy's all-requirements member-owner cooperatives to support commercial, industrial and agricultural (CI&A) member projects.

The program provides low-interest, fixed-asset financing to facilitate the installation of energy-efficient equipment and support beneficial electrification. This program isn't just about cutting costs; it's about accelerating energy innovation and strengthening rural economies in an era of rapid transition.

Who can apply?

The E3 program is available exclusively to Great River Energy's all-requirements member-owner cooperatives. The co-ops act as a pass-through lender to their CI&A members, enabling them to finance a wide range of qualified energy efficiency and electrification upgrades.

Key loan features at a glance:

• Minimum loan amount: $50,000
• Maximum loan amount: $350,000 (or up to 80% of the total project cost)
• Loan term: Up to 10 years, based on the equipment's useful life
• Interest rate: Up to 3%, with potential for as low as 0% based on energy savings or new energy sales
• Fees: No closing costs beyond actual legal expenses; co-ops may charge a 1% servicing fee annually.
• Security requirements: May include corporate or personal guarantees, mortgages, or equipment liens

What projects qualify?

The E3 program targets projects that drive meaningful energy savings or electrification. Some examples include:

Energy efficiency projects

(Must demonstrate at least 100,000 kilowatt-hours in annual savings)

• Custom energy conservation retrofits
• Upgraded HVAC systems
• Advanced lighting systems
• Manufacturing equipment optimized for energy use

Electrification Projects

(Must result in net carbon reduction and new electric sales)

• Electric forklifts
• ENERGY STAR® commercial food service equipment
• Heat pumps for commercial applications
• Indoor agriculture technologies
• Robotic milking systems
• Electrification for manufacturing automation

Why now? A critical moment for rural investment

Macroeconomic pressures, higher interest rates, shrinking federal incentives, and global energy shifts can create uncertainty for rural businesses. But while other sources of funding may waver, Great River Energy remains a reliable partner.

The E3 program continues to offer below-market interest rates with flexible terms, giving member-owner cooperatives a stable resource to finance the next generation of energy solutions.

E3 loans also pair well with other local, state and federal economic development funding programs. For example, manufacturers investing in electrification for process automation technology can leverage an E3 loan to tap into the State of Minnesota’s Automation Loan Participation Program, which can provide additional gap financing of up to $500,000 at 1% interest for businesses purchasing machinery, equipment, or software to increase productivity and automation.

What's in it for cooperatives?

The E3 program is more than a financing tool for cooperatives — it's a growth strategy. Here's how it benefits them directly:

• Member engagement: Co-ops help their CI&A members lower costs and stay competitive.
• Carbon reduction: Supports local and statewide  goals for energy conservation and decarbonization.
• Rural economic development: Keeps dollars circulating in the local economy and supports investment in new technology to increase productivity and output.
• Energy sales growth: Beneficial electrification can drive new electric load growth.
• Co-op control: Cooperative boards retain oversight, pass through favorable terms and may collect a servicing fee to cover admin costs.

The electrification edge: Meeting the moment

Minnesota and the broader region are undergoing a quiet revolution. Electrification is reshaping how rural businesses operate. New electric technologies offer cleaner, more cost-efficient alternatives, from automated manufacturing lines to indoor ag operations. But adoption requires capital. The E3 fund bridges that gap, enabling cooperatives to be proactive leaders in this trend rather than reactive observers.

Examples of impactful projects:

• Advanced HVAC systems: Since its inception, the E3 program has supported the installation of advanced indoor climate control technology in CI&A businesses, including a subordinated loan to support the 2019 construction of the Crystal Brook Senior Living Facility in the Itasca-Mantrap Cooperative service area in Park Rapids, followed by a second loan when the facility was ready to expand in 2024.
• Manufacturing automation: As Minnesota manufacturers adopt modern process automation technology, Great River Energy has worked with co-ops like Lake Country Power to provide E3 financing for wood products manufacturers, thermoform plastic molding operations, equipment manufacturers, and more.
• Agriculture and food production: E3 program funds can be applied to a number of different agricultural and food processing operations, with eligible uses including farming facility upgrades, advanced grain drying operations, commercial kitchen equipment, and even automated robotic milking systems, as demonstrated by Stearns Electric and Pike Hills Dairy in 2022.

Final word: Energy confidence in a time of change

As rural businesses navigate economic headwinds, Great River Energy's E3 Commercial Financing Program is a lifeline and a launchpad. It empowers cooperatives to provide real value to their members through targeted investments in efficiency and electrification, all while keeping long-term costs down. And while other funding sources may come and go, Great River Energy's commitment to the E3 fund is unwavering.

Now is the time to act, to invest in energy that will pay dividends for decades.