Revolving Loan Program

October 03, 2012


The State of Kansas transferred $22 million in ARRA funding from the Efficiency Kansas program to the Kansas Commerce Department to use for commercial energy projects. The Commerce Department has returned $1.5 million to cover the loans that had not been allocated to roughly 150 applicants. Continual sources of funding are being sought to keep the loan program operating.

Using money made available to the state through the federal American Recovery and Reinvestment Act (ARRA), the Efficiency Kansas revolving loan program* allows homeowners and small businesses to receive financing to pay for energy improvements and renewable energy systems for their existing homes and buildings. Some utilities will administer the loan program for the state. Customers of utilities not participating in the program can contact a partner lender for direct financing. Homeowners may borrow up to $20,000 and small businesses may borrow up to $30,000, but monthly loan repayments may not exceed the estimated monthly energy savings. Participants will have up to 15 years to repay the loan.

Participants must first have an energy audit performed by a program qualified auditor to identify the best efficiency improvements to pursue. Participants are responsible for paying for the energy audit, but the cost can be rolled into the loan amount. Additionally, customers may be eligible for a discount allowing homeowners to receive an energy audit for $100. The $100 audit program ends October 1, 2011, or when all offers have been claimed. After receiving the recommendations from the audit, the participant must solicit bids from contractors. The participant must then submit the Energy Conservation Plan to the participating utility or lender who will then submit it to the State Energy Office for review and approval. If the State Energy Office approves the plan, the lender or utility may then proceed with the financing.

Program participants may also qualify for a $500 rebate toward the cost of thermal envelope improvements. Qualifying efficiency improvements may include caulking, insulation, weather stripping, window sealing, and door sealing. The first 1,500 participants qualify for this rebate, and projects must be completed by December 31, 2011.

Homeowners or business owners participating through their utility will repay the loan directly through their utility bills. The loan is attached not with the individual but with the utility account. In the even the homeowner or business moves, the loan obligation will remain with the property. Participants are required to notify future occupants of the remaining loan repayment obligations associated with the property. Failure to make proper disclosure could result in the customer being responsible for immediate repayment of the remaining balance.

See program website for more information. To participate in the program, interested parties should contact their utility or one of the program lenders.

* A revolving loan program is one in which the loan repayments are added back into the fund. In this way, the loan program, in theory, may continue indefinitely.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Kansas
Incentive Type: Loan Program
Web Site:
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Photovoltaics
  • Wind (All)
  • Yes; specific technologies not identified
  • Wind (Small)
  • Other Distributed Generation Technologies
Maximum Loan: Residential Projects: $20,000 maximum loan
Commercial and Industrial Projects: $30,000 maximum loan
Loan Term: Maximum term of 15 years
Interest rate is not to exceed 4%

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.