Solar is big business in Missouri. It ranks 27th in the nation for installed solar capacity and boasts 176 solar companies that employ 2,819 people. Yet, there is always room to grow in the state of Missouri. According to the Solar Energy Industries Association, only 0.5 percent of electricity generation came from solar energy sources in 2019. In a state where 73 percent of energy comes from coal, clean, renewable energy has a bright future. Learn more about how Missouri is making the move to solar easy and cost-effective.
Missouri’s Solar
Report Card
To determine a grade for each state, our researchers and solar experts analyzed data on crucial solar-advancement criteria from the following sources:
- Rebates, Tax Credits, and Tax Exemptions from Database of State Incentives for Renewables & Efficiency;
- Electricity Rates from the U.S. Energy Information Administration;
- Renewable Energy Policy from NC Clean Energy Technology Center;
- Interconnection Ease from Freeing The Grid;
- Photovoltaic Potential from the Energy Department
We determined a rank from one to 10 for each state in each category. We then combined the scores with the following weights and assigned an overall grade for each state. Our goal is to encourage those considering solar for their homes to get a basic understanding of solar potential in their areas and discover the best opportunities for clean energy available.
Incentives & Rebates, 40%
Electricity Rate, 15%
Renewable Energy Policy, 30%
Interconnection Ease, 5%
Photovoltaic Potential, 10%
How Expensive is Electricity in Missouri?
The cost of electricity in Missouri is less than the national average at $0.11 cents per kWh, according to the U.S. Energy Information Administration (EIA). The residential sector is the second largest energy-consuming sector in the state, after transportation, and more than 50 percent of households in the state use natural gas as their primary energy source for heating, according to the EIA. However, coal is the most commonly used fuel for electricity generation in Missouri, supplying 80 percent of the state’s electricity needs. While wind and hydroelectric power are increasing, the state has the capacity to significantly grow its use of renewables, including solar energy.
Cost of Residential Electricity
Data from U.S. Energy Information Administration
*as of Q3 2015
Missouri Info
and Resources
Incentives & Policy on Switching to Solar
In 2008, the state adopted a mandatory renewable energy portfolio standard. By 2021, investor-owned electric utilities will need to generate 15 percent of total electric sales from renewable energy sources with two percent from solar. To achieve this goal, county, state, federal and utility incentives are available for Missouri residents. Homeowners and businesses can take advantage of solar rebates offered by Empire District Electric, Kansas City Water and Light and Columbia Water and Light. Businesses and nonprofits can receive financing for renewable energy systems from the Missouri Clean Energy District program. And a number of other programs are available to help encourage solar installation.
REBATES/INCENTIVES
The Empire District Electric Company allows utility customers with 0.5 kW to 25 KW PV systems to receive a rebate of $0.25/W for systems operating between 2019 and 2023. In order to be eligible, systems must be installed where they receive at least 85 percent of the available solar resource. In addition, solar energy systems must be new and under a 10-year manufacturer’s warranty to qualify.
Set the PACE St. LouisSet the PACE St. Louis allows residential and commercial property owners to receive 100 percent upfront financing for installing PV systems. Applicants must receive a minimum amount of $25,000 and the maximum is 35 percent of the property’s value. Financing, which carries an interest rate of three to six percent, can be repaid in up to 20 years.
Local Option – Clean Energy Development BoardsThis program allows property owners around Missouri to receive funding to make energy improvements on their commercial or residential buildings. Recipients have up to 20 years to repay the loan.
Ameren Missouri Solar EnergyThis plan debuted in 2018 and includes $28 million in solar rebates for customers, in addition to investing $14 million in company-owned solar generation by 2023. In 2019, it has funds available for solar rebates at $0.25 per watt.
None for residential specifically
This program provides financing for businesses, nonprofit organizations, and government agencies to install renewable energy systems on their property. Entities can take up to 20 years to repay this funding, which is done by making additional payments on property tax bills.
POLICIES
Under this law, property owners in the state have the right to use solar energy.
Interconnection GuidelinesPassed in 2007, this law requires that all electric utility companies allow property owners with PV systems to connect to the power grid. Those with systems over 10 kW are required to carry liability insurance of $100,000.
Net MeteringMissouri property owners with solar systems can receive credit on their bill for excess energy generation per this law. The amount earned is credited to the customer’s next bill, however, credits do expire after 12 months. To qualify, a system must not exceed 100 kW.
City of Kansas City – Solar Easements and Geothermal AccessSimilar to state law, Kansas City requires that those with PV systems have access to adequate sunlight to operate the devices.
None for residential specifically
None for commercial specifically
TAX CREDITS
PV systems that are not held for resale receive a 100 percent exemption on local, county, and state property taxes.
None for residential specifically
None for commercial specifically
Missouri Solar Panel Resources
Specializing in solar PV system design and installation, St. Louis-based EFS Energy lays claim to be the premier solar energy installation company in the Midwest. In addition to solar power systems for homes and businesses, EFS designs and installs LED lighting and whole Home Energy Performance systems for Missouri, Illinois and Kansas
Where it operatesSt. Louis, MO
Year of opening2011
Part of a nationwide network of solar contractors, Energy Team Missouri designs, installs, takes care of all the paperwork and helps customers find financing for residential and commercial solar PV systems in compliance with local, state and federal guidelines, standards and requirements. The company works state-wide.
Where it operatesChesterfield, MO
With offices in Ellisville, Houston, Springfield, Columbia and Lees Summit, Missouri Sun Solar’s sales team helps customers navigate and obtain financing, its engineers custom design residential and commercial solar energy installations and NABCEP certified installers build the system.
Where it operatesEllisville, MO
Year of opening2012
Serving Springfield, southwest Missouri, and northern Arkansas, Skywire Electrical Systems is a family-owned business that provides a comprehensive range of electrical products, systems and services to residential and commercial customers, including solar financing.
Where it operatesSpringfield, MO
Year of opening2009
The company recently launched a low-interest solar loan program that makes installing PV systems more affordable. Located inn Harrisburg, Son Solar Systems engineers, designs, installs and services grid-tied and off-grid PV. solar water and space heating systems for homes and small businesses.
Where it operatesHartsburg, MO
Year of opening2011
StraightUp Solar’s team of NABCEP-qualified professionals designs, installs and helps finance residential and commercial solar PV solutions in Missouri and Illinois. To date, the company has installed more than 150 grid-tied solar PV systems and is locally owned.
Where it operatesSt. Louis, MO
Year of opening2006
Additional Reading
The Division of Energy’s website contains a wealth of valuable reference information for those looking to install solar PV systems, from explanations of how solar PV works and what to consider when planning installations to federal, state and utility incentive programs.
The Missouri Department of Agriculture (MDA) and partners including the University of Missouri used $5 million in federal seed funding from the U.S. DOE’s Better Buildings Neighborhood Program to create MAESTRO. The program helps small farming operations across Missouri implement solutions that reduce energy use, increase profitability while also helping local ecosystems.
Formed in 2009 by state solar industry leaders, MOSEIA is the state branch of the national SEIA. Its goal is to foster growth of solar energy use and businesses through outreach, advocacy, continuing education and training.
Maintained by the North Carolina Clean Energy Center, the U.S. Department of Energy’s national DSIRE (Database of State Incentives for Renewables & Efficiency) is perhaps the most comprehensive source of information and statistics regarding state solar policies and incentives available. Filtering for Missouri, DSIRE lists a total of 62 solar policies and incentives.
The premier national solar industry association, SEIA offers a wide range of news, information, research and statistics covering just about every aspect of solar energy in the U.S. That includes a state fact sheet for Missouri that highlights recent market, industry and political developments and statistics.