Going solar in Missouri

Public/private school districts, local governments, and hospitals may be eligible for special financing on energy efficiency improvements through the Missouri Energy Loan Program (MELP). The revolving loan fund is managed by the state's Department of Economic Development. Available principal ranges from $10,000 to $1 million. Funding can be repaid over 10 years at 2.75% APR and with a 1% administrative fee. Monthly payments are typically based on estimated cost savings. Additional information is available from the DED Energy Division website.

Missouri's mandatory renewable portfolio standard was created in 2008 by the Proposition C ballot referendum. The standard sets minimum quotas for renewable energy investment. Current objectives (as of 2021) require the state's power industry to source 15% of retail energy from renewable sources by the end of the year. Any solar, wind, biomass, hydrogen fuel cell, or select solid waste reclamation system may qualify. However, "carve-out" measures require a specific portion of the annual quota be fulfilled using solar energy. Compliance is measured through both renewable energy credit (REC) and solar carve-out credit (SREC) systems. Each credit pegs a fixed amount of electricity to a variable dollar value. Credits are subject to market forces as utilities buy them through net metering and retire them after three years. Annual reports on standard objectives and progress are available through the Missouri Public Service Commission website.

Home customers of Columbia Water and Light may be eligible for special financing on ENERGY STAR certified building materials and equipment. Available offers will vary from time to time. Currently, loans are available for central and room HVAC, insulation/weatherization, solar water heaters/thermal systems, and some appliances. CWL works with loan partners to provide financing. Current repayment options can last up to ten years at variable interest rates. Applicants will be subject to standard credit checks, pre-installation audits, and final system inspections by CWL representatives. Additional information is available from the CWL website.

Missouri requires any private/municipal utility, electric retailer, or utility cooperative to offer net metering contracts to renewable energy customers. Any solar PV/heating, wind, hydroelectric, or hydrogen fuel cell system qualifies to receive tariff compensation. Once a customer and their utility agree to a contract, the utility will install a bidirectional meter on the customer's system at no cost. This meter measures net excess generation (NEG) sent back to the grid. The customer's electric bill will be credited at a fixed avoided-cost rate for NEG generated during each billing cycle. Should generation exceed consumption for any given month, credits may carry forward to subsequent cycles. Additional information is available from the Missouri Department of Economic Development website.

The Missouri Clean Energy District is a statewide property-assessed clean energy (PACE) financing program. Counties and cities may join MCED at any time, allowing local businesses, farms, nonprofits, and public-sector building owners to receive specialized loans for energy efficiency improvements. (Due to regulatory concerns from the FHFA, residential buildings are ineligible for PACE loans at this time.) PACE funding effectively comes from the government, but it is administered by the MCED and a number of banking partners. Loans are at low interest and can be repaid over up to 20 years. Repayments take the form of a tax lien senior to the property's mortgage; should the owner sell or transfer their property, the new owner will be responsible for continuing repayments. Additional information is available from the MCED website and member localities.

Any private/public electrical utility or cooperative in Missouri must offer their renewable energy customers interconnection and net metering contract options. Unlike other states, renewable energy systems are not divided into regulatory tiers based on size and capability; however, systems over 100 kW in capacity are ineligible for net metering. All systems must meet standards set by IEEE/UL and have manual disconnect switches/other safety features installed. Additional information is available from individual utilities.

Business customers of Columbia Water and Light may be eligible for special financing on energy efficient equipment and improvement projects. Available offers will vary from time to time. currently, "Super Saver" loans are available for HVAC systems, solar and geothermal water heaters and heat pumps, and energy efficient lighting. CWL works with banking partners to provide financing; as such, loan terms may vary. Loans through the program are senior to other debt on the property; should the owner sell the property or refinance another loan, they must pay off the Super Saver loan. The application process involves pre-installation audits and final system inspections using ASHRAE Level 2 standards. Additional information is available through the CWL website.

Show Me PACE is a multi-jurisdiction property-assessed clean energy financing program in Missouri. Any county or city government may become a program signatory. The program serves business and multi-family residential property, farms, nonprofits, and public-sector facilities making energy or water efficiency improvements. A minimum principal of $50,000 is available at low market-rate interest. Repayment periods may vary, but cannot be longer than the useful life of the equipment that the loan funds. The Missouri Energy Initiative oversees the Show Me PACE lending market. Additional information is available from the program website.

"Set the PACE" is a local property-assessed clean energy (PACE) financing program. Businesses, nonprofits, and public-sector property owners in the city/county of St. Louis may be eligible for special financing through the program to fund energy efficiency improvements. Residential property may qualify so long as it is not mortgaged. PACE funding effectively comes from public funds, but loans will be supplemented by PNC and serviced by local governments. The maximum available principal for a single loan is $25,000 or 35% of the property's assessed value, whichever is lower. Loans are low-interest and can be repaid over up to 20 years. Repayment takes the form of a tax lien senior to the property's mortgage; should the owner sell or transfer their property, the new owner will be responsible for continuing repayments. Additional information is available from the Set the PACE St. Louis website.