Feature Story

Missouri's Energy Loan Program

Missouri’s Energy Loan Program, administered by the department’s Division of Energy, provides loan financing to eligible recipients for energy-saving investments to reduce energy use and cost.
Main Photo
Solar energy from rooftop panels now supplies around 80% of the energy needs for the Greenfield R-IV School District, thanks to an energy loan from the Missouri Department of Natural Resources.
Solar Energy from Rooftop panels now supplies around 80% of the energy needs for the Greenfield R-IV School District, thanks to an energy loan from the Missouri Department of Natural Resources.
Image Source
MoDNR file photo.
Opening Sentence
Since 1989, the department has awarded 616 loans, resulting in $115 million in completed energy efficiency projects with $214 million in estimated cumulative energy savings. 
Project examples include: High-efficiency lighting, high-efficiency HVAC systems, combined heat and power systems, renewable energy systems, waste heat recovery, energy-efficient fine bubble diffusers, high-efficiency pumps and insulation.

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.

Author Contact

Van Beydler

Author Title
Division Information Officer
Author Description

Van Beydler is a retired division information officer for the Missouri Department of Natural Resources' Division of Energy.

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