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.