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)
  • Publicly 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 subdistrict of a zoological park and museum district, as defined in section 184.352, RSMo
• Not-for-profit organizations, including private not-for-profit hospitals and private educational institutions
• Agricultural entities
• Non-agricultural small businesses, based on the U.S. Small Business Administration's table of small business size standards
• Other business, commercial or industrial entities

Applicants must not be in default, have a pending event of default or previously defaulted on an energy loan from the department. Applicants must also be current on all taxes due and owed to the State of Missouri.

Loans can be used for equipment, such as 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, unless otherwise agreed to by the department. The proposed project must be located within the borders of Missouri. Applicants must be in compliance with all applicable state and federal environmental laws and permits.

Examples of Awarded Projects:

• City of Monett: Loan of $33,543 for lighting upgrades. The estimated annual savings are $4,720.
• City of Unionville: Loan of $86,609 for lighting upgrades. The estimated annual savings are $9,169.
• Hannibal Public Schools: Loan of $709,600 for heating, ventilation and air conditioning system upgrades and $1,115,959 for lighting upgrades. The estimated annual savings are $242,918.
• Missouri Western State University: Loan of $213,367.50 for lighting upgrades. The estimated annual savings are $24,525.
• Monett R-1 School District: Loan of $561,495 for lighting upgrades. The estimated annual savings are $108,574.
• Normandy Public Schools: 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 air conditioner load management system. The combined estimated annual savings are $273,797.
• Wentzville R-4 School District: Loan of $3,073,831 for lighting upgrades. The estimated annual savings are $334,500.

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.

The application period for Energy Loans closed March 31, 2025. To apply for a loan, applicants must submit their application through the department’s Funding Opportunities Portal (preferred) or by email to energy@dnr.mo.gov. New funding portal users must submit a Funding Opportunities Portal Access Request to establish access and use the portal. Please allow up to 48 hours for the request to be processed. The applicant will receive an email with a 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 the application cycle closing date. Approved applications will then be considered for funding. Application approval does not create a binding financial commitment on behalf of the department.

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 (provided as part of the loan agreement)
• Certification Regarding Debarment, Suspension and Other Responsibility Matters (provided as part of the loan agreement)
• Certification Regarding Lobbying (provided as part of the loan agreement)
• Code of State Regulations 10 CSR 140.2 - Energy Set-aside Fund
• Code of State Regulations 8 CSR 30-3 - Prevailing Wage Law Rules

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.