Application Period is Open!

The Missouri Department of Natural Resources offers low-interest loans to communities for qualified energy-saving investments and energy efficiency and renewable energy projects to reduce energy use and cost. Loan recipients repay the loan with money saved on energy costs as a result of implementing energy efficiency projects. By using loan financing, the loan recipient's tax dollars are freed up for essential services or other capital improvements. The loan recipient also benefits from reduced energy costs and increased comfort of building occupants. 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.

As the loans are repaid, the loan principal and interest earnings are recycled back into the state’s CWSRF fund. These funds are used to finance new loans to other recipients, allowing the funds to "revolve" at the state level. For additional information, please review the Energy Loan Program - PUB1222 fact sheet.

Information and Assistance

The department encourages potential applicants to contact the department's Division of Energy for information and assistance. The Energy Loan Program Clerk can be reached by phone at 573-751-2254.

Who Can Apply

Eligible recipients include the following: 

  • Public schools (K-12)
  • Public higher education institutions (colleges and universities)
  • Public and private nonprofit hospitals, schools and libraries
  • 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

Eligible recipients must not be in default or have a pending event of a default. The applicant must also be current on all taxes due and owed to the State of Missouri. Please refer to the current loan cycle for eligible applicants and eligibility requirements.

Eligible Projects and Costs

These loans can be used for various 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 be in compliance with all state and federal environmental laws and permits. Loan funds may be used to finance the design, material and equipment acquisition, installation and commissioning of energy-efficiency and renewable energy projects in any of the following:

  • An existing structure
  • Proposed new construction
  • Any applicant-owned group of closely situated structural units that are centrally metered or served by a central utility plant
  • An eligible portion of any of these that includes and energy-using system

For new construction, loans may be used to finance the incremental cost of implementing energy-saving measures that exceed the energy efficiency standards established by local codes or the latest version of ASHRAE Standard 90.1.

Award Amounts

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 are awarded between $10,000 and $1 million. 
  • Loan interest rate for the Fiscal Year 2024 loan cycle is 2.50%
  • An administrative fee of 1% of the loan principal is added to the repayment amount
  • Loan repayment term is typically 10 years or less.

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 Clerk for review and reimbursement.

Application Process

The application period for the Energy Loan Program is now open! Applicants must submit their application by June 30, 2024. Approximately $5 million in loan financing is available for loans between $10,000 and $1 million. To apply for this loan, applicants must submit an Energy Loan Program Application Authorization Form and various summary forms. In order to download these forms, you must agree to the following program requirements:

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. A zipped file, containing the application forms will automatically download to your device and can then be opened from your downloads folder.

Loan applications are evaluated on a first-come, first-served basis. Applications will be reviewed based on the date the department receives all information needed to determine the feasibility of the project. Loan applications for less than $10,000, or with a payback score of less than six months, will not be considered. Loan applications will be approved or disapproved within 90 days of receiving a complete application. If funds remain after the applications have been reviewed and prioritized, the department will consider awarding loans in excess of $1 million. 

Awarded Loans