The department offers low-interest loans to public K-12 schools, public colleges and universities, hospitals and local governments for energy-saving investments and energy-efficiency projects to reduce energy use and cost. 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.

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. The money saved can then be used to repay the loan.  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. 

Loan Terms and Repayment

The interest rate for the FY23 loan cycle is set at 2.50%, with a loan repayment term of typically 10 years or less. An administrative fee of 1% of the loan principal will be added to the repayment amount. This is a reimbursement program. 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.

Eligibility and Application

Eligible Recipients

  • Public schools (K-12)
  • Public Higher 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

Application Process

The Energy Loan Application cycle is open until June 30, 2023. Loan recipients 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.

To download the Energy Loan Program application, you must agree to the following program requirements:

  1. Certification Regarding Debarment
  2. Certification Regarding Lobbying
  3. Loan Rule - Energy Set-Aside Fund
  4. DOLIR - Prevailing Wage
  5. 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. For information regarding the loan program application, please contact the Division of Energy.



NOTE: You must agree to the conditions to apply for an Energy Loan. If you have questions or concerns, please contact the Division of Energy.


Loan Awards

Current Loan Awards
Applicant Scope of Work Award Amound
Hannibal Public School District 60 Lighting Upgrades $1,115,959
Moberly School District Solar, Building Controls $1,095,760
Monroe City R-I School District Lighting Upgrades $164,018
Neosho School District Lighting Upgrades $110,468
North Andrew Co. R-VI School District Lighting Upgrades $61,775
Oak Hill R-I School District Lighting Upgrades $63,500
Salem R-80 School District Lighting Upgrades $250,647

Loan Map