Butler Rural Electric Cooperative - Energy Efficiency Improvement Loan Program

Butler Rural Electric Cooperative offers low-interest loans covering up to $25,000 (100% of project cost) for energy efficiency improvements, heat pumps, and geothermal systems at 4.25% interest, with loan terms up to 120 months depending on amount borrowed. To apply, you must be a member and property owner; submit a completed application with a $15 fee, recent income verification, and a bid or estimate; for heat pump or geothermal work, an energy audit ($150, reimbursable if you proceed) is required before approval. Loan payments are conveniently billed monthly with your electric bill, with no prepayment penalty.

This program enables your residential customers who are Butler Rural Electric Cooperative members to finance energy efficiency upgrades, air-source heat pumps, and geothermal systems with minimal out-of-pocket cost and flexible repayment terms up to 120 months. Equipment must meet ENERGY STAR standards (for example, heat pumps require minimum SEER 15 and HSPF 8.2–8.5; geothermal requires minimum EER 17.1 and COP 3.6); windows and doors must be ENERGY STAR rated with maximum U-factor of 0.30. Work cannot begin until the loan is approved, and energy audits are mandatory for new heat pump and geothermal installations (not replacements).

This cooperative loan program provides up to $25,000 at 4.25% interest to qualifying member-owners for energy efficiency, heat pump, and geothermal projects, with loan terms scaled by amount (12–120 months). Pre-approval occurs within 72 hours of application; loans over $2,000 require county mortgage filing. The program requires energy audits (at $150, reimbursable) for all new geothermal and heat pump installations (excluding replacements) to verify home energy readiness. Closing costs include a $15 application fee, $24 UCC filing, $57 origination, and potential $76 mortgage filing fee. Loan funds are budgeted annually and may be limited by prior activity; payments are collected via monthly electric bills.