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Incentives/Policies for Renewables & Efficiency

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Methane Digester Loan Program   

Last DSIRE Review: 10/08/2014
Program Overview:
State: Minnesota
Incentive Type: State Loan Program
Eligible Renewable/Other Technologies: Biomass, Anaerobic Digestion
Applicable Sectors: Agricultural
Amount:RFA participation limited to 45% of loan principal
Maximum Incentive:RFA can provide up to $250,000 of loan principal
Terms:10 year maximum loan term, RFA portion at zero-interest
Funding Source:Minnesota Rural Finance Authority (RFA)
Web Site:
Authority 1:
Date Enacted:
Minn. Stat. § 41B.049
Authority 2:
Minn. Stat. § 41B.03

Established in 1998, the Minnesota Dept. of Agriculture Methane Digester Loan Program helps livestock producers install on-farm anaerobic digesters used for the production of electricity by providing zero-interest loans to eligible borrowers. The loan program is part of the Rural Finance Authority (RFA) revolving loan fund, through which farmers can receive financial aid for many different farming related activities and improvements. The general eligibility requirements for loans through the RFA are contained in Minn. Stat. § 41B.03, which permits loans only to Minnesota residents, domestic family-farm corporations, and family-farm partnerships. The methane digester loan program is specifically authorized by Minn. Stat. § 41B.049.

In order to be eligible for a Methane Digester Loan, a borrower must:

  • locate the projects and utilize the equipment and practices on land located in Minnesota;
  • provide evidence of financial stability;
  • demonstrate an ability to repay the loan;
  • provide evidence that the practices implemented and capital assets purchased will be
    properly managed and maintained; and
  • not have previously received a loan under this program

Within the Methane Digester Loan Program, the RFA may make a direct loan to the borrower or act as a participant in the loan with an eligible lender (more than 400 such approved lenders exist throughout the state). State participation is limited to 45% of the loan principal in the case of participation loans and may not exceed $250,000 for either participation or direct loans. The loan term is limited to a maximum of 10 years and repayment terms for the RFA's participation interest may differ from those of the outside lender. Loans can be used as a match for federal loans and grants, but may not be used to refinance a debt existing prior to the application.

  Ryan Roles
Minnesota Department of Agriculture
Rural Finance Authority
625 Robert Street North
St. Paul MN 55155-2538
Phone: ((65) 1) --201
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.