Energy Loans

Eligible recipients include the following: 

• Public schools (K-12)
• Public higher education institutions (colleges and universities)
• Local governments, including the following:
  • Cities, towns, villages or counties (which may include water treatment plants or wastewater facilities)
  • Public-owned airport facilities (municipal, county, regional and international)
  • Any hospital district, as defined in section 206.010, RSMo
  • Any sewer district, as defined in section 249.010, RSMo
  • Any water supply districts, as defined in section 247.010, RSMo
  • Any ambulance district, as defined in section 190.010, RSMo
  • Any sub-district of a zoological park and museum district, as defined in section 184.352, RSMo

Applicants must not be in default or have a pending event of a default and must also be current on all taxes due and owed to the state of Missouri.

Please refer to the Notice of Funding Opportunity for more information.

These loans can be used for various types of equipment, including high efficiency lighting fixtures and lamps, combined heat and power systems, renewable energy systems, waste heat recovery, high efficiency pumps and high efficiency heating, ventilation and air conditioning (HVAC) systems. These loans can also be used for building shell improvements, such as insulation and other infiltration measures, and other measures that reduce energy use and cost.

The applicant must own and operate the building or system proposed for energy-saving improvements. The proposed project must be located within the borders of Missouri and projects must be in compliance with all state and federal environmental laws and permits. Loans to public schools and local governments do not count against debt limits or require a public vote or bond issuance.

Please refer to the Notice of Funding Opportunity for more information.

Funding is limited and is awarded on a first-come, first-served basis. All or part of the cost of implementing an energy-saving project may be financed through the Energy Loan Program. Loan amounts are based on estimated annual energy savings documented as part of the application process. Loans (loan, interest, and point) are repaid to the department from the energy savings achieved.

For the Fiscal Year 2025 Loan Cycle:

• Loans will be awarded between $10,000 and $5 million 
• Loan interest rate will be 2.5%
• An administrative fee of 1% of the loan principal is added to the repayment amount
• Loan repayment term is typically 10 years or less

Loan applications for less than $10,000, or with a payback score of less than six months, are not considered. Please refer to the Notice of Funding Opportunity for more information.

Sample of Awarded Energy Loan Program Projects

• City of Monett: Received a loan of $33,543 for lighting upgrades. The estimated annual savings are $4,720.
• City of Unionville: Received a loan of $86,609 for lighting upgrades. The estimated annual savings are $9,169.
• Hannibal Public Schools: Received a loan of $709,600 for HVAC upgrades and $1,115,959 for lighting upgrades. The estimated annual savings are $242,918.
• Missouri Western State University: Received a loan of $213,367.50 for lighting upgrades. The estimated annual savings are $24,525.
• Monett R-I School District: Received a loan of $561,495 for lighting upgrades. The estimated annual savings are $108,574.
• Normandy Public Schools: Received loans of $851,966, $278,295, and $977,047 for lighting upgrades, building automation systems, chiller plant recommissioning, boiler plant and hot water upgrades, and a window AC load management system. The combined estimated annual savings are $273,797.
• Wentzville R-IV School District: Received a loan of $3,073,831 for lighting upgrades. The estimated annual savings are $334,500.

The department is accepting applications for Energy Loans. Applications will be accepted on a first-come, first-served basis until March 31, 2025, or until all funds are obligated—whichever comes first. Applicants must submit their application through the department’s Funding Opportunities Portal (preferred) or by email to energy@dnr.mo.gov. New users of the Funding Opportunities Portal must submit an Access Request to utilize the portal. Please allow up to 48 hours for the request to be completed. The applicant will receive an email with user ID and password. 

Applications will be marked as complete and received based on the date the department receives all information needed to determine the feasibility of the project. Loan applications will be approved or disapproved within 90 days of receiving a complete application. Loan applications for less than $10,000, or with a payback score of less than six months, will not be considered.

Applicants must agree to the requirements of the Energy Loan Program including, but not limited to, those contained in the following:

• Sample Loan Agreement
• Notice of Funding Opportunity
• Federal Work Program Authorization
• Certification Regarding Debarment, Suspension and other Responsibility Matters
• Certification Regarding Lobbying
• Code of State Regulations 10 CSR 140.2 - Energy Set-aside Fund
• Code of State Regulations 8 CSR 30-3 - Prevailing Wage Law Rules
• Public Law 101-166

By clicking the “Agree” button as an applicant, you agree to abide by the Energy Loan Program requirements, which may be viewed at the links provided above.

NOTE: You must agree to the conditions to apply for an Energy Loan.

• If you are using Google Chrome as your web browser, an Excel file containing the application forms will automatically download to your device and can then be opened from your downloads folder.
• If you are using Microsoft Edge as your web browser, it will open in "view-only" in Microsoft Edge for quick viewing. The file can then be downloaded using the blue "Download file" button above the document view.
• Energy Loan Program Application Macros Instructions - Instructions to enable macros

This is a reimbursement program. Funds are initially expended by the "loan" recipient. Once a project is complete, the loan recipient submits a reimbursement request and final project cost report, along with itemized invoices and canceled checks, to the department's Energy Loan Program for review and reimbursement.

• Final Project Cost Report MO 780-2895
• Reimbursement Request MO 780-2896

Once the department has reimbursed all funds, the loan proceeds to the repayment phase with the first payment due approximately 150 days after final reimbursement. This allows the recipient to accumulate the savings before payment. Payments will be due every six months until the loan is paid in full.