Missouri is making available $7.5 million in low interest loans for energy efficiency and renewables installed by schools, hospitals, and local governments.
The Division of Energy will evaluate loans on a competitive basis for projects costing between $5,000 and $1.5 million. If money remains, the state will consider offering larger loans, in excess of $1.5 million.
The state seeks projects with the quickest payback, based on cost versus anticipated savings.
Applications are due from July 1 through October 31. The state plans to divvy funds as follows.
- Public schools (K-12): 25 percent
- Public and private higher education 25 percent
- Public and private not-for-profit hospitals: 25 percent
- Local governments: 25 percent
Local governments include a county, city, or village, certain hospital, ambulance, sewer and water, zoological park and museum districts.
Administered as part of the Energy Loan Program, the loans provide financing for energy-saving investments such as lighting, waste heat recovery or combined heat and power, renewable energy, insulation, heating and cooling, and other measures that reduce energy use and cost.
The interest rate is 2.5 percent with a 1 percent administrative fee on the loan principle. Facilities can repay loans from money saved by reducing energy costs. Loans to public schools and local governments do not count against debt limits or require a public vote or bond issuance.
“Energy efficiency is the best, cleanest and lowest cost resource, and the Energy Loan Program is a real testament to that,” said Lewis Mills, director of the Division of Energy. “Applicants realize significant energy savings that translate into extra capital, which can be redirected to essential services. The awarded projects provide much needed improvements to facilities, encourage the use of green technology, reduce greenhouse gases, and help create jobs and stimulate local economies.”
Since the program began in 1989, the Division of Energy has awarded more than 538 loans, accounting for nearly $89 million in energy-efficiency projects being completed and more than $167 million in estimated cumulative energy savings.
The contact for more information is: Missouri Department of Economic Development, Division of Energy, Loan Program Clerk, P.O. Box 1766, 301 W. High, Ste. 720 Jefferson City, MO 65102, 855-522-2796.
The loan application is available here.