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Energy Revolving Fund Loans

Local Government
Savings Category 
Heat Pumps
Solar Water Heat
Program Info
Start Date 


Program Type 
State Loan Program

'''''Note: The Division of Energy is now accepting applications for the FY2014 program. Applications are due August 31, 2013.'''''

The Missouri Energy Revolving Fund Loan Program, administered by the Division of Energy in the Missouri Department of Natural Resources (DNR), is available for energy efficiency and renewable energy projects for public and governmental buildings and structures. Eligible recipients include public schools (K-12), public/private colleges and universities, city/county governments, public water and wastewater treatment facilities, and public/private not-for-profit hospitals.

Loan amounts are based on projected energy savings from energy efficiency upgrades, which result in monetary savings that are used to repay the loan. For Fiscal Year (FY) 2014 (March 2013 – August 2013), financing is set at 2.5% interest rate and 1% loan origination fee. Repayment schedules are determined on an individual project basis, but not to exceed 10 years. Loans under this program are determined on a competitive basis according to payback period.

$5 million in loan funding was available for FY 2013, and $5 million is available for FY2014 as well. The loan amount limit is $5,000 - $500,000 per applicant. As funds remain after review and priority ranking of applications, the department has considered awarding loans in excess of $500,000.

The Missouri Department of Natural Resources’ (MDNR) Division of Energy (DE) has provided the energy revolving loan funds from petroleum violation escrow funds and bonds since 1989. The interest rates for energy loan financing are generally lower than the market interest rates. Loan recipients repay the loans with money saved on energy costs as a result of implementing energy efficiency and renewable energy projects. An energy saving loan is not defined as debt and therefore does not count against debt limits or require a public vote or bond issuance.

Since the program's inception in 1989, loans totaling over $84 million have been made through this program, resulting in an estimated cumulative savings of $158 million.