Energy Efficiency Loans

Commercial Energy Efficiency Loans

Why not make an energy efficiency upgrade now and start saving on your utility bills? We can help you with financing the upgrades.  Our loans have a fixed, low-interest rate with no prepayment penalties. Click here to download the loan application.

Items Eligible for a Loan
  • Energy efficiency assessment
  • Air conditioner
  • Heat pump
  • Natural Gas Furnace (with Air Conditioner or heat pump)
  • Lighting
  • Solar water heater*
  • Solar energy system*
Interest Rates
You can select your terms and interest rate by determining the length of your loan.

  • Up to 3 years: 1%
  • 4 to 5 years: 3%
  • 6 to 10 years: 5%
Loan Parameters
For commercial electric customers

  • Must be a property owner
  • Detailed energy efficiency assessment by certified consultant (ASHRAE Level II)
  • Minimum insulation requirements
  • Good credit history
  • DEED of Trust required
  • Subordination of loan only under special circumstances
  • No prepayment penalties
  • $30,000 maximum per meter, up to $90,000 per property
Building Assessment Requirement
The loans require an ASHRAE Level II energy assessment. Check with Columbia Water & Light if you would like a list of consultants. After the assessment, you will be given suggestions on how to make your business more energy efficient. Our loan program is a great way to finance these improvements.

Requirements for Efficiency Improvements

Energy Assessments: The cost of an ASHRAE Level II assessment can be financed.

Heating and Cooling Systems: Allows for replacement of a furnace — natural gas, propane or electric — if it is installed along with a new central air conditioner or heat pump with an efficiency rating 11 EER or greater for units that are 6 tons or larger.

Lighting: The new lighting system must be at least a one kilowatt reduction from the old lighting system. Only payments made to outside vendors for equipment, supplies and labor are eligible for financing. All requirements of the lighting rebate program must be followed.

Duct Sealing: Financing is available for sealing the supply and return ducts to achieve the lowest leakage rate possible. Requires an additional duct testing before and after the sealing is completed.

Our loans DO NOT subordinate to other loans you have on your property. If you refinance your current business loan or sell your building, you will be required to pay off the Commercial Energy Efficiency Loan. Requesting subordination of your Commercial Energy Efficiency Loan generally takes at least two months. If you are refinancing your mortgage for a lower interest rate, shorter loan term, in order to maintain ownership of the building or borrow more money for an improvement project, you could be eligible for subordination. A copy of the customer’s current credit rating, the appraisal used for refinancing and a copy of the mortgage application will need to be submitted. A committee that meets before the tenth day of each month will review the subordination requests to determine if a customer is eligible. Please contact us if you have any questions about subordination.

REBATES: You could also be eligible for a Columbia Water & Light rebate for energy efficient lighting and/or heating & cooling systems. Make sure you fill out a rebate application and turn it in with your final loan paperwork. Check with your other utility providers, the Missouri Department of Natural Resources and the Federal Government for additional rebates.

Loan Participation Steps
  1. Schedule an ASHRAE Level II energy assessment and complete the commercial loan application. Your consultant can help you with the application.
  2. Once notified by Columbia Water & Light that your loan is approved you can proceed with completing your project.
  3. After completing all the efficiency projects, make copies of all invoices and contact Columbia Water & Light (573-874-7325) for the final inspection. Copies of invoices and equipment ratings are necessary to complete this step. At this inspection, the staff member will collect all copies of the invoice.
  4. Two weeks after the loan inspection, you will be contacted by Columbia Water & Light to arrange an appointment.
  5. All people listed on the loan form must be present at the loan signing appointment. Columbia Water & Light offices are located at City Hall, 701 E. Broadway, 4th floor.
  6. A photo ID (i.e. driver’s license) is required for each applicant. A Recorder’s Office fee of $27 (amount is subject to change) will be added to your final loan amount. You will receive the check for your loan at the end of this appointment.
  7. Monthly statements for your loan will be mailed to you. Your monthly payment for the loan will be added to your utility bill from the City of Columbia.
    • Nonpayment of any portion of your utility bill could lead to disconnection of services. Please contact Utility Customer Service before your bill’s due date if you need to make a special payment agreement. Call 573-874-7380 or e-mail


The Commercial Energy Efficiency Loan program is financed from the enterprise fund of Columbia Water & Light. No general revenue funds of the city, or any other forms of public money, are used by the program.