Loans
Is your home using too much energy? Do you need to make an electrical upgrade or improvement to your home? Butler Rural Electric Cooperative can finance loans at 100 percent of the cost of the project for energy efficiency improvements, electrical improvement, air-source heat pumps and geothermal systems at the low interest rate of 3%. By making these improvements, you can increase the energy efficiency of your home and lower your electric bill.
Types of Loans
Energy efficiency loans at a 3% interest rate
Energy efficiency loans can be for insulation, weather stripping, caulking, storm and thermal windows and door, and clock or electronic thermostats. Typical insulation products will qualify such as cellulose, fiberglass batts or rolls, rigid or foam boards, and expanding spray foam. Windows and doors must be ENERGY STAR rated with a maximum U factor of .30.
Electrical improvement loans at a 3% interest rate
Electrical improvement loans can be for upgrading of services, meter pole changes, rewiring projects, power quality equipment, backup generators and disconnect switches, and correction of unsafe electrical conditions.
Air-source heat pump and central a/c unit loans at a 3% interest rate
To qualify for the heat pump loan, the heat pump must be ENERGY STAR rated. Current standards include a minimum SEER of 14, HSPF of 8, and COP of 2.5. To qualify for the the central a/c unit loan, the central a/c unit must be ENERGY STAR rated with a minimum SEER of 14 and EER of 12.
Geothermal loans at a 3% interest rate
The geothermal will be financed at a 3% interest rate for 60-120 months, depending on the amount borrowed. This will include all labor, duct work, excavation, pipe and materials. To qualify for the loan, the geothermal system must be ENERGY STAR rated. Current standards include a minimum EER of 17.1 and COP of 3.6.
Application Process
Loan applications can be downloaded below, picked up at our office or we can take the application by phone, fax, mail, or e-mail. No work that is to be paid for by loan funds should be done before the loan is approved. A $15 application fee will be applied to all applications approved or denied.
Click here to download a loan application.
Energy audits will be required for some loans before any loan funds are disbursed. This requirement is to ensure the home is energy efficient and a good candidate for a new heating and cooling system and the energy efficiency project is a good investment for the home. An energy audit will be required for all HVAC loans. The cooperative offers energy audits for $150. The $150 will be reimbursed if the member installs a geothermal system, air-source heat pump, or makes the significant recommended energy efficiency changes within one year of the audit.
New construction homes may be required to be ENERGY STAR rated or a Touchstone Energy Home to qualify for the loan. To learn more about ENERGY STAR homes, click here. To learn more about the Cooperative's Touchstone Energy Home program, click here.
The length and type of the loan depends on the amount borrowed.
Energy efficiency, air-source heat pumps, central a/c units, electrical improvements, and geothermal:
$500 - $2,499: up to 18 months
$2,500 - $4,999: up to 48 months
$5,000 - $9,999: up to 60 months
$10,000 - $25,000: up to 120 months
We will have a pre-approval within 72 hours of receiving the application. If pre-approved, we will need a copy of the member's last year's W-2 or last pay stub to verify income and a copy of the bid or estimate of the job. If the loan amount is over $2,000, we require filing a mortgage with the county and will need a copy of your recorded deed.
To find out more about the loan program, contact us at (513) 867-4400 or 800-255-BREC (2732). If you have questions about the loan program, you can also e-mail us at butler@butlerrural.coop.
