FY2018 Supplemental Energy Loan Cycle Announcement
The FY2018 Supplemental Energy Loan Cycle is now open. Missouri's energy loan program is making available approximately $5 million in loan financing for qualified projects that invest in energy efficiency and renewable projects. Loan applications are being accepted from January 2, 2018 to March 30, 2018. Loan amounts vary from $10,000 to $1 million and are repaid by energy savings with a maximum repayment term of 10 years including principle and interest. For further assistance, please contact the Energy Loan Program at 855-522-2796.
Low-interest Loans to Schools and Governments 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. 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 Energy Loan Program’s inception in 1989, the Division of Energy has awarded more than 598 loans resulting in more than $106 million in completed energy efficiency projects and more than $198 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
Applications will be reviewed on a competitive basis until all available funds are awarded.