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Heat Pump Loans

Electric Heat Pump Loan Program

People's Electric provides financing for the purchase and installation of high efficiency electric heat pumps for qualified members. The specifics of this program are as follows:

Equipment Requirements

  • Air-to-air, dual fuel or ground source electric heat pumps will qualify.
    Financing is available for replacement units only. (Not available for new homes.)
  • SEER rating must be 13 or greater.
  • Equipment must have a manufacturer's warranty of at least a five years, or the life of the loan if loan term exceeds five years.
  • Equipment must be installed by a Contractor who holds a Mechanical Contractor's License with a minimum of $50,000 general liability insurance and $5,000 workmanship bond. (Must have current copy of this information on file with PEC prior to loan closing. This information may be faxed to PEC at (580) 436-0229.)

Customer Requirements

  • Must have been a PEC member for 24 months or longer.
  • PEC credit history of no monthly payments received after the 20th of any month or any returned checks. Should also have a satisfactory credit report through the local Credit Bureau.
  • The member must hold title to the structure where heat pump(s) is installed/financed and allow PEC to file a Mortgage on property where heat pump will be installed. (Cannot be renting the home.)
  • The member must complete a PEC Credit Application.
  • The member must sign a new Agreement for Electric Service for the term of the loan or until the loan is paid off.
  • Mobile homes must be mounted on a permanent foundation on five (5) acres or more where the member holds the title.
  • The member must agree to join PEC's Load Management Program (if implemented).
  • The member must provide a copy of the Warranty Deed or Abstract (to be returned to the owner).
  • The home may be subject to inspection/appraisal to satisfy mortgage requirements. In addition, PEC may require title insurance.
  • An acceptable co-signer who meets these guidelines can be used with PEC's approval.

Loan Provisions

  • Before loan closing, the equipment must be installed with a copy of the contractor's bill provided to PEC, and is subject to PEC's inspection.
  • A "pre-approved interest rate and loan" can be provided, which is good for 30 days.
  • Checks will be issued directly to the contractor. If a copy is not on file, customer must provide proof of contractor's license and workmanship bond.
  • Loans will not be made to re-finance electric heat pumps. In addition, these loans are not available for installations where PEC's rebate program has been chosen by the member.
  • Loan must be paid off if the home is subsequently sold.
  • The term of the loan can be up to ten years.
  • All loans will require member to provide additional security by collateralizing with their PEC capital credits.

Interest Rate/Term

  • Interest Rate is subject to change on a daily basis; however, the rate on a particular loan is fixed for the life of that loan.
  • The term of the loan can be up to ten years.
  • Current rates available

    • 7.5% - With PEC Sure B.E.T. Program
    • 10.5% - Without PEC Sure B.E.T. Program

  • Loan document fee is $35, which is added to the loan.

For more information or to apply for a heat pump loan, call toll-free 1-877-456-3031 or (580) 332-3031.  To electronically request more information, please complete the form below.