Missouri's Energy Loan Program

Past recipients include K-12 public schools, public and private higher education institutions, public and private not-for-profit hospitals. Other loan recipients include local governments, hospital districts, sewer districts, water supply districts, a zoological park or museum district and publicly owned airport facilities (municipal, county, regional and international).

“Energy loans give eligible applicants the opportunity to benefit from reduced energy costs and increased comfort of building occupants,” said Craig Redmon, division director. “Loan financing frees up money recipients 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 energy-efficiency projects.”

Loan cycles and the timing for submission of applications are announced in the Missouri Register, as well as through the department’s website and news releases, electronic mail announcements and stakeholder groups.

“Interest rates are set at below-market rates, typically from 2% to 4% simple interest,” said Redmon. “The terms of loan repayment are never beyond 10 years. This is a reimbursement-based program. Once a project is complete, the loan recipient will submit documentation to the Division of Energy for review and reimbursement.”

Recipients of loan financing are selected on a competitive basis. Applications are ranked based on the project’s payback score, which is calculated by dividing the cost to implement a project by the estimated yearly energy cost savings. The Energy Loan Program also offers funding for eligible recipients impacted by severe weather events or catastrophic equipment failure. Such entities may apply for emergency loans year-round.

Applications must be submitted within two months of the weather event or catastrophic equipment failure. Loans can provide financing for replacing or upgrading damaged equipment.

For more information, visit the Energy Loan Program webpage or sign up to receive email or text notifications from the department’s Division of Energy.