Solar photovoltaic (PV) panels directly produce electricity from sunlight, while solar thermal technologies capture the sun’s heat for water or space heating. As of 2023, almost 80% of the solar energy generation in the state of Missouri came from smaller systems such as those on rooftops; this resulted in 692 thousand megawatt-hours of generation.
Solar panels can help individuals, businesses and communities lower energy costs and reduce environmental impacts from energy consumption. If you are interested in installing solar panels, consider the following:
- Energy efficiency: Before considering a solar energy system, look for cost-effective ways to reduce your energy consumption so you can save money on your electric bill. By reducing your energy consumption, you might be able to install a smaller, less-costly solar energy system. A home energy audit can identify energy efficiency measures.
- Shop around: Get quotes from multiple solar businesses. The Missouri Solar Energy Industries Association lists member businesses that you can consider. Be cautious of sales pitches that pressure you into quick action.
- Payback time: Consider how long it will take to pay back the cost of a solar energy system. Compare your typical electricity usage to the expected production of a solar energy system and your electric utility’s rates. The National Renewable Energy Laboratory’s PVWatts® Calculator is a free tool that estimates solar photovoltaic system performance. Be wary of any sales pitches that claim an automatic increase in utility rates or promise unrealistic savings. And since solar energy systems require sunshine, keep in mind that a solar energy system may not offset all your energy consumption.
- Utility policies: Be aware of your utility’s policies related to solar energy. You will have to work with your electric utility prior to connecting solar panels to the local grid. Contact your utility to learn more about the availability of net metering. Ameren Missouri, Evergy and Liberty-Empire are regulated by the Missouri Public Service Commission. Municipal utilities are regulated by their local governments, and rural electric cooperatives are controlled by their member-owners (i.e., customers).
- Government Incentives and Grants: Be wary of any sales pitches that claim the government will pay for your solar panels. A federal Residential Renewable Energy Tax Credit may be able to offset part of the cost of a solar system and your electric utility may have incentives for solar panels. In addition, the Environmental Improvement and Energy Resources Authority (EIERA) is setting up a program for solar financing using Solar for All funding. More details are available on the EIERA website. Independently verify the details of any alleged government programs before committing.
The department can offer general advice regarding solar energy systems, but it cannot recommend particular businesses. Visit the U.S. Department of Energy, BBB St. Louis, Federal Trade Commission and Missouri Solar Energy Industries Association for additional tips when considering solar energy systems.
For consumer protection concerns, contact the Missouri Attorney General, the Federal Trade Commission or the Missouri Solar Energy Industries Association.