Energy Loan Program News

FY2020 Energy Loan Program Announcement

The Missouri Division of Energy is now accepting applications for low-interest energy improvement loans to public K-12 schools, public colleges and universities, local governments to include municipal, county, regional, and international airports, public water and wastewater treatment facilities, and public and not-for-profit hospitals. In total, the department is making $4 million available for these entities to complete energy efficiency and renewable energy projects throughout the state of Missouri.

The loan application period ranges from June 17, 2019, through September 20, 2019, for loans between $10,000 and $500,000. Loan applications will be evaluated on a competitive basis. If money remains after applications have been reviewed and prioritized, consideration will be given to loans in excess of $500,000.

“Energy efficiency is essential to Missourians and is key to a strong economy. Quality, affordable energy should be available to all, and the Energy Loan Program assists in making this possible,” said Craig Redmon, director of the Missouri Division of Energy. “The Energy Loan Program covers many facets of our economy, creating jobs to install energy innovations and retrofits into already established schools, hospitals and government buildings, saving taxpayers’ money.”

Loans are repaid from energy savings achieved. Loans to public schools and local governments do not count against debt limits or require a public vote or bond issuance.

The loans, administered as part of the Energy Loan Program, provide financing for energy-saving investments, such as 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, and other measures that reduce energy use and cost.

Since the Energy Loan Program’s inception in 1989, the Division of Energy has awarded more than 609 loans resulting in more than $112 million in completed energy efficiency projects and more than $199 million in estimated cumulative energy savings. There have been no loan defaults in the 30-year history of the Energy Loan Program.

For more information about the Energy Loan Program or to apply, please visit http://energyloan.mo.gov or call toll-free 855-522-2796.

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 Division of Energy has awarded more than 612 loans resulting in more than $114 million in completed energy efficiency projects and more than $199 million in estimated cumulative energy savings. There have been no loan defaults in the 29-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.