Low-Interest Loans for Energy Efficiency Improvements
The Division of Energy provides loans to public schools (K-12), public/private colleges and universities, local governments including public owned airport facilities (municipal, county, regional, and international), public water/wastewater treatment facilities and public/private not-for-profit hospitals to help reduce energy costs through the Energy Loan Program. Please refer to current loan cycle offering for eligible applicants. This loan financing may be used for various energy-saving investments.
Loan recipients benefit from increased occupant comfort in their buildings and reduced energy costs. The financing also frees up tax dollars that 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 the energy-efficiency projects.
According to Attorney General of Missouri opinion letter No. 136-85, these loans borrowed by public schools and local governments 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 Energy Loan Program’s inception in 1989, the department has awarded more than 622 loans, resulting in more than $118 million in completed energy efficiency projects and more than $214 million in estimated cumulative energy savings. There have been no loan defaults in the 31-year history of the Energy Loan Program.
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 systems
- 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
Recipients of loan financing are determined through a competitive process. Applications are ranked based on the proposed project’s payback score which is determined by dividing the cost to implement a project by the estimated energy cost savings. Projects with the lowest payback score are funded until all available loan funds are allocated.