Low-interest Energy Loans Available

Low-interest Loans to Schools and Governments for Energy Efficiency Improvements

FY2017 Supplemental (2.75% interest rate) loan cycle is now open. Loan applications are being accepted from October 3, 2016 to January 13, 2017. The loan amount per applicant is $10,000 to $1,000,000. Loans are repaid by energy savings with a maximum repayment term of 10 years including principal and interest.

The Division of Energy provides loans to public schools (K-12), public/private colleges and universities, city/county governments, public owned airport facilities (municipal, county, regional, and international), public water and wastewater treatment facilities, and public/private not-for-profit hospitals to help reduce energy costs through the Energy Loan Program.

This loan financing may be used for various energy-saving investments, including projects such as upgrading insulation, lighting systems, heating and cooling systems, windows and other items that affect your energy use.Loan recipients benefit from increased occupant comfort in their buildings and reduced energy costs. The financing also frees up tax dollars that school districts, higher education facilities and local governments 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 the energy-efficiency projects. 

According to Attorney General of Missouri opinion letter No. 136-85, these loans borrowed by public schools do not require electorate assent and are not considered as “debt” created. Therefore, the loan financing does not count against debt limits or require a public vote or bond issuance.

Since the fund was initiated in 1989, the Division of Energy has awarded more than 571 loans, which has resulted in nearly $99 million in completed energy-efficiency projects and more than $181 million in estimated cumulative energy savings.

Projects with energy cost savings are eligible with this Energy Loan Program. Examples of eligible projects include:

  • High efficiency lighting fixtures and lamps
  • High efficiency heating, ventilation and air conditioning systems
  • Combined heat and power systems
  • Renewable energy sytems
  • 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

Applications will be reviewed on a competitive basis until all available funds are awarded. An Energy Loan Program Application Form and General information may be found on the department’s website: https://energy.mo.gov.