III.2. Hopkins Climate Solutions Fund Update; Larson
CITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Mikala Larson, Sustainability Specialist
Date: June 17, 2025
Subject: Update on Hopkins Climate Solutions Fund
_____________________________________________________________________
PURPOSE
Update City Council of the status of the Hopkins Climate Solutions Fund.
INFORMATION
Background
The Hopkins Climate Solutions Fund (HCSF) was established in 2023, driven by
inquiries from residents and businesses regarding incentive opportunities for
sustainable improvements such as solar, EV infrastructure and energy system
improvements, and direction from City Council to develop a green cost share program
for sustainable property improvements. Staff worked with local consultant, Local Climate
Solutions, to develop an equity-centered program that focuses on providing incentives
for items which are likely to have the greatest impact on resiliency. The program takes
into consideration existing rebates from utility providers Xcel Energy and CenterPoint
Energy, and state and federal incentives.
The program structure offers three separate buckets of funding for income-qualified
residential, non-income qualified residential, and commercial projects. Projects available
for residential applicants include a Home Energy Squad Planner visit, insulation and air
sealing, electric panel upgrade, air source heat pump, electrified water heater, solar
energy system, and an electric bike. Eligible technologies for commercial projects
include LED lighting upgrades, solar energy system, Level 2 electric vehicle charging
equipment, or an electric bike. Renters are eligible to apply for the program, but need
property owner approval. Commercial properties located in the urban heat island area of
concern (along Excelsior Boulevard and Blake Road) have the opportunity to pursue a
bonus rebate when they complete an eligible site improvement.
2025 Program
The Hopkins Climate Solutions Fund is currently open for its third year. Applications
opened January 1 and are open until December 1 or funds are allocated. The program
is funded using Franchise Fees, and $125,000 was budgeted for the program in 2025.
Over 25% of this year’s program budget has been allocated.
Outreach efforts include email blasts, articles in the Hopkins Connections and
Highlights, tabling at and hosting community events, and partnering with organizations
to do outreach and mailings. Nearly 230 community members have been engaged so
Engineering
far at community events in 2025. The City will hold a Green Ribbon Cutting ceremony to
celebrate 2024 projects on Wednesday, July 23rd. This will be an opportunity to
celebrate completed projects, learn about the program, and connect with community
members.
Hopkins Climate Solutions Fund Program Report as of June 2025:
Metric Categories Funding Category June 2025
Applicants
NIQR 26
IQR 5
Commercial 2
Total 33
Completed Project
NIQR 4
IQR 4
Commercial 0
Total 8
Funds Available
NIQR $25,000
IQR $75,000
Commercial $25,000
Total $125,000
Funds Allocated
NIQR $21,147.59
IQR $8,800
Commercial $3,995
Total $33,942.59
Project Types
Applied For
Home Energy Squad Planner Visit 0
Insulation & Air Sealing 2
Induction Range 4
Electric Panel Upgrade 1
Heat Pump Water Heater 0
Heat Pump Dryer 0
Tankless Water Heater 0
ASHP Heating and Cooling System 2
Electric Dryer 4
Solar Energy System 4
Battery Storage 1
EV Charging Equipment 0
Electric Bike 14
LED Lighting 0
Other Technologies 1
Total Projects 33
Tracking Success
We track the success of the program in the following ways:
- Number of applications received and projects completed
- Cost savings reported by participants
- Energy savings reported by participants
- Participant survey
- Completed permits
A conservative estimate of $7,500 in savings is reported by applicants across the
program so far for 2025 projects.
Staff is reviewing opportunities to gain better data on cost and energy savings. While
some applicants report their estimated savings, these numbers aren’t consistently
reported and there is room for improvement. Staff is currently working with partner cities
and organizations to establish a more comprehensive way to track cost and energy
savings
Overall, the program receives extremely positive comments from the community.
Businesses and residents consistently share how appreciative and proud of their
community they are to have access to a green cost share program. A handful of
program participants have commented that they recently moved to Hopkins because the
community aligns with their values, including leading on sustainability efforts.
New Program
Electric bicycles have been the most popular project each year of the program. In
consideration of this, City staff applied for a grant opportunity from the State of
Minnesota to pilot a separate, dedicated electric bicycle program. The City of Hopkins
was awarded a Local Climate Action Implementation grant from the Minnesota Pollution
Control Agency for the project Incentivizing Sustainable Transportation Through Electric
Bicycle Rebates. Establishing a dedicated program using grant funds will free up
Hopkins Climate Solutions Fund budget for home or business electrification and energy
efficiency projects, while still offering electric bicycle rebates for which the demand has
been demonstrated.
In Summary
The Hopkins Climate Solutions Fund is a successful program offering incentives for
energy efficiency, electrification, renewable energy, and sustainable transportation to
community members, including residents and businesses. Program staff receive
positive comments regarding the program from community members and peer
communities alike, and have presented about the program and its success to both local
and national audiences, making the City of Hopkins a leader and a resource for these
types of programs.
FUTURE ACTION
• None