North Arkansas Electric Cooperative, Inc - Energy Efficiency Loan Program
Administered by North Arkansas Electric Cooperative
Get low-cost financing for energy improvements like heat pumps, insulation, windows, LED lighting, and EV chargers at a fixed 1% interest rate through NAEC's Energy Efficiency Loan Program. You must be an NAEC member for at least six months, and loans range from $1,000 to $20,000 (board approval required above $20,000), with repayment periods up to 10 years depending on the improvement type. Apply online at naeci.com/loans or in person at NAEC offices in Salem, Ash Flat, or Mountain Home; approval typically takes one business day.
NAEC offers a streamlined financing channel for your customers' efficiency projects, from HVAC systems to building envelope work, with low-cost 1% loans covering both labor and materials. You must be licensed in Arkansas and carry liability and workers' compensation insurance; NAEC maintains a list of approved dealers. Work cannot begin until the loan is approved and funds are available, and all invoices must be submitted to NAEC for closure—the borrower receives the check and handles payment to you.
This USDA Rural Energy Savings Program loan delivers financing across residential, commercial, industrial, agricultural, and public sectors in seven-county service area covering ~35,000 members. Loans are 1% fixed rate with minimum $1,000 and standard maximum $20,000 (board approval above that), with contract lengths varying by technology: heat pumps max 8–10 years, LED residential 5 years/commercial 10 years, weatherization 5–10 years based on amount, and appliances 5 years. Staff review credit, payment history, and audit/blower-door-test results for cost-effectiveness before approval; liens are filed with Arkansas Secretary of State and county within 7–10 days ($50 filing fee to borrower).
Program details
- Program ID
- 2042
- Effective
- 1/1/2015
- Last updated
- 7/3/2025
Eligibility
- Sectors
- commercial industrial local government residential schools agricultural
- Technologies
- geothermal heat pumps clothes washers dishwasher heat pumps compressed air duct/air sealing windows doors motors comprehensive measures/whole building other ee insulation led lighting lithium-ion level-2 electric vehicle service equipment
Program summary
North Arkansas Electric Cooperative (NAEC), a Touchstone Energy Cooperative, serves approximately 35,000 member accounts in seven different counties. The coop provides low interest rates for energy efficiency improvements in the home through the EECL Loan Program. Eligible customers include residential, commercial, industrial, public, community buildings/facilities, structures used in agricultural operations, and any other location deemed suitable by NAEC. Customers must be a NAEC member for at least six months to receive a loan.
The loan interest rate is 1% for the duration of the loan, with a maximum contract of 10 years, a minimum loan of $1,000, and a maximum loan of $20,000. Loans exceeding $20,000 must be approved by the NAEC board. The contract period will vary depending on the loan type and amount.
Loans are available for:
- HVAC: air-source heat pumps, mini-split heat pumps, and geothermal heat pumps. Air-source and mini-split have a max 8-year contract. Geothermal have a max 10-year contract. NAEC will determine the system size through an energy audit and blower door test.
- LED Lighting: energy-efficient lighting, including LED installations and retrofits. Residential installations have a max 5-year contract. Commercial installations have a max 10-year contract.
- Building Envelope Improvements and Air Sealing: building envelope improvements, including but not limited to ENERGY STAR windows and doors, ceiling/floor/wall insulation, duct work, and certain roofing applications. Weatherization loans require an energy audit by an NAEC energy advisor. The loan can cover the cost of labor and materials. Loans under $5,000 have a max 5-year contract. Loans $5,000 or more have a max 10-year contract.
- Energy-Efficient Appliances: ENERGY STAR-rated appliances. Loans have a max 5-year contract.
- Other: motor systems, irrigation or water systems, compressed-air systems, energy storage devices, commercial energy audits, and EV chargers. The contract period with depend on the size of the loan.
Contact & resources
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
