Energy Loan Program

Division of Energy fact sheet	08/2020
Division of Energy Director: Craig Redmon	PUB1222

Energy Loan Program
The Energy Loan Program provides loan financing to eligible recipients for energy-saving investments to reduce energy use and cost.

Eligible Recipients

• Public schools (K-12).
• Public and education institutions.
• Public and private not-for-profit hospitals.
• Local governments, including hospital districts, sewer districts, water supply districts, sub-districts of a zoological park and museum districts, and public owned airport facilities (municipal, county, regional, and international).
  Note: Please refer to current loan cycle offering for eligible applicants.

Benefit to Recipients

• Loan recipients will benefit from reduced energy cost and increased comfort of building occupants.
• Loan financing frees up tax dollars that recipients can use for essential services or other capital improvements.
• Loan recipients repay the loan with money saved on energy costs as a result of implementing energy-efficiency projects.
• An energy saving loan for schools and local governments is not defined as debt and therefore does not count against debt limits or require a public vote or bond issuance.
  

Examples of Eligible Loan Activities

• High efficiency lighting fixtures and lamps.
• High efficiency heating, ventilation and air conditioning systems.
• Combined heat and power systems.
• Renewable energy systems.
• Waste heat recovery.
• Energy efficient fine bubble diffusers and high efficiency pumps.
• Building shell improvements such as insulation and other infiltration measures.
• Other measures that reduce energy use and cost.

Loan Cycles, Terms of Loan and Repayment

• Loan cycles and time for submission of applications is announced in the Missouri Register, through news releases, electronic mail announcements, the department’s website and links to stakeholder groups.
• Interest rates are set at below market rates – typically from 2-4% simple interest.
• The terms of loan repayment are typically 10 years or less.
• This is a reimbursement program. Once a project is complete, the loan recipient will submit Reimbursement Request and Final Project Cost Report forms, itemized invoices, and canceled checks to the Energy
• Loan Program Clerk for review and reimbursement.
  

Process and Selection Criteria

• Recipients of loan financing are determined on a competitive basis.
• Applications are ranked based on the project’s payback score, which will be determined by dividing the cost to implement a project by the estimated yearly energy cost savings.
• Projects with the lowest payback will be funded until all available funds are allocated.
  

Emergency Loans

• Eligible recipients impacted by severe weather events or catastrophic equipment failure may apply for low-interest emergency loans year round.
• Applications must be submitted within two months of the weather event or catastrophic equipment failure.
• Loans can provide financing for replacing or upgrading damaged equipment.