Energy Resource Conservation (ERC) Loans

Ozarks Electric Cooperative has low interest loans available to help you make energy efficient improvements to your home or business. By making home improvements, you can significantly reduce energy usage and lower your electricity bill. You may use these low interest loans to finance heat pumps and other energy improvements. To qualify, the heat pump must have a high efficiency rating and be sized according to our design requirements.

Our low interest rate and monthly installment plan make your loan payments easier on your budget. With approved credit, you may borrow the money now to make improvements; then, take up to seven years to repay the loan. Certain requirements apply, so be sure to contact us before buying your new equipment.

Loan Guidelines

  1. Applicant must be a member of Ozarks Electric.
  2. Ozarks Electric will finance the installation of heat pumps and related material that meet the following criteria:
    • Heat Pumps:
      • Must be new.
      • Must have an HSPF rating of 7.4 or more.
      • Must have a SEER rating of 13.0 or more.
      • Must be within ½ ton of Ozarks Electric recommendations.
    • Weatherization Material:
      • Insulation
        • Walls R-13
        • Ceilings R-38
        • Floors (crawl space) R-7 (Cellulosed Stem Wall)
      • Storm windows or replacement windows with double-pane glass.
      • Metal or fiberglass insulated doors with weather-stripping
      • Must be well-sealed, insulated metal duct.
      • No Fiberglass insulation.
      • NO FLEX DUCT!
  3. The member’s credit must meet the following criteria:
    • Receive an acceptable credit score.
    • Credit history must not reflect any bankruptcies or collections.
    • Must have a debt to equity ratio lower than 35%.
  4. Details of Loan:
    • The maximum amount of any loan will be $6,000 unless approved by the Board of Directors.
    • A committee composed of any one board member and one employee will approve loan amounts up to $6,000.
    • For current interest rates, please call Ozarks Electric.
    • Loans are available on existing structures only.
    • A lien will be filed on the equipment and related weatherization materials.
    • The loans will be for a period of seven (7) years.
    • Loans will not be processed without signed contracts by homeowner.
    • Loan funds will not be given to homeowner until equipment is installed and inspected.
  5. The member must be gainfully employed or have other source(s) of sufficient income.
  6. All applicable filing fees shall be at the borrower’s expense.

Energy Resource Conservation Loan Flow Chart

  1. Member completes credit application and provides proof of income.
  2. Loan committee reviews credit application of the member. A two-person committee will approve loan amounts up to $6,000. Loans requested for more than $6,000 must be approved by the entire Board of Directors at the next scheduled meeting.
  3. Member informed of his/her credit approval.
  4. Member signs loan documents at our office. These documents include:
    • Indemnity and Hold Harmless Agreement
    • ERC Loan Contract
  5. Member pays $16.00 filing fee.
  6. Member notifies contractors of loan approval and authorizes work to be done.
  7. Contractors complete required work.
  8. Cooperative inspects installation of equipment, insulation, etc.
  9. Cooperative pays Member who in turn will pay contractors for satisfactory work completed.
  10. Cooperative files UCC-1 showing lien on equipment.
  11. Cooperative bills Member monthly for ERC Loan payments due the 10th of each month.

ERC Loan Application Form 

Once you have downloaded and completed the application, return to any of our office locations or mail it to:

Ozarks Electric Cooperative
Attn: Keith Kaderly
PO Box 848
Fayetteville, AR 72702

The application is in a PDF format. If you do not have a PDF viewer installed on your computer, click the link below for a free download.