Energy Loan Program
Administered by Missouri Department of Natural Resources’ Division of Energy
This program is not available to homeowners. The Missouri Energy Loan Program provides financing only to public entities such as K-12 schools, colleges, cities, counties, hospitals, and water/wastewater facilities for energy efficiency and renewable energy projects on buildings they own and operate.
This program is not designed for contractors. Eligible applicants are public institutions and local governments that undertake their own energy projects; contractors may serve as vendors to these entities on competitively bid or procured projects.
The Energy Loan Program, administered by Missouri's Division of Energy, provides low-interest financing (2.5% for FY2025) to eligible public entities for energy efficiency and renewable energy projects, with loan amounts from $10,000 to $5 million based on projected energy savings. FY2025 offered $5 million in funding on a first-come, first-served basis with a 1% origination fee and typical 10-year repayment terms; applications closed March 31, 2025. Loans are repaid from energy cost savings and are not counted as debt for schools and local governments, allowing funds to revolve back into the Energy Set-aside Fund for future recipients.
Program details
- Program ID
- 233
- Effective
- 1/26/1989
- Last updated
- 7/29/2025
Eligibility
- Sectors
- local government schools state government institutional
- Technologies
- solar - passive solar water heat solar space heat solar photovoltaics wind (all) biomass combined heat & power wind (small) lighting chillers furnaces boilers heat pumps air conditioners programmable thermostats building insulation windows motors custom/others pending approval other ee
Program summary
Note: FY2025 - Loan Applications are Currently Closed as of July 29, 2025.
The Missouri Energy Loan Program, administered by the Division of Energy in the Missouri Department of Economic Development (DED), 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 non-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) 2025 financing is set at a 2.50% interest rate and 1% loan origination fee. Repayment terms are typically 10 years or less.
For FY2025, $5,000,000 in loan funding was available. Loans are available in amounts from $10,000 to $5,000,000 per applicant.
Background
The Missouri Department of Economic Development’s Division of Energy has provided the energy loans from petroleum violation escrow funds and bonds since 1989. Since the program's inception, loans totaling over $89 million have been made through this program, resulting in an estimated cumulative savings of $167 million. 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 for public schools and local governments and therefore does not count against debt limits or require a public vote or bond issuance.
Contact & resources
- Contact email
- andy.popp@ded.mo.gov
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
