Missouri’s Renewable Electricity Standard (RES)—also known as a Renewable Portfolio Standard (RPS)—is intended to increase use of renewable resources in the state by establishing the minimum amount of renewable energy that the state’s electricity providers must sell in a given year. This legally-established renewable energy procurement goal gradually increases over time to meet the overall target of 15% renewable power by 2021.
The state profile below explores the design of this policy, highlighting the factors that influence the success of Missouri’s RPS goals and the tradeoffs inherent to it. Once you’re comfortable with the information on this page, you can evaluate the policy’s expected viability with the RPS Feasibility Calculator. You can also use the calculator to change the policy requirements, trajectory, cost cap, and more, to see how altering Missouri’s policy design affects its success.
- 15% of the state’s energy consumption must be from renewable sources by 2021, subject to the cost cap
- Carve-out for solar
- Explicit cost cap at 1% of retail rate
Carve-outs can create economic opportunities in the state by introducing new or promising technologies into the market. However, these standards limit the utilities’ ability to substitute between renewable energy sources, potentially increasing the cost of the policy. Missouri requires 2% of the RPS requirement be met through solar electric power each year, leading up to 0.3% of sales in the target year 2021
Compare the goal established in the RPS to what is being achieved.
The following chart compares the variety of sources currently used to generate Missouri’s electricity. The color of each bar is indicative of the carbon intensity of each source.
Cost Cap Details
Missouri has an explicit ‘cost cap’ to protect its customers the potential increase in electricity costs as a result of this policy. Missouri’s Revised Statute § 393.1030 (Sect. 2(1)) specifies that the cost of compliance must not result in an increase in electricity rates of more than 1% annually. If the 1% cap is exceeded, utilities may be excused from their obligations and the annual RPS requirement will be adjusted downward until the restriction is satisfied.
Historic retail prices (¢ / kWh)
The above chart presents historical data from the Energy Information Administration (EIA) on the price at which residential customers can purchase electricity. Typically, states set explicit cost caps relative to the retail price (as opposed to the lower wholesale price).
Missouri’s Renewable Energy Standard (RES) replaced the state’s voluntary renewables goal in 2008. The requirement of 15% of retail electricity sales by 2021 applies only to investor-owned utilities, and remains at 15% in 2021 and thereafter. The RES is overseen by the Public Service Commission (PSC). RECs and solar RECS can be used toward compliance.
RPS Technical Details
|Eligible Technologies||Solar photovoltaics, solar thermal, wind, small hydropower, biogas from agricultural operations, landfills and wastewater treatment plants, some waste materials; various forms of biomass; fuel cells using hydrogen from renewable resources|
|Geographic Eligibility||Renewable Energy Credits (RECs) can count towards compliance with a 3-year lifetime; no geographic limitations, and an incentive multiplier of 1.25 for in-state|
|Percent of Total Load||70%|
|Technology Requirements||Solar Electric—2% of the annual requirement|
|Penalty||200% (or more) REC value, unless excused by PSC for reasons beyond their control, or cost cap is reached. These costs cannot be recovered from ratepayers.|
Tools and other links
- Database of State Incentives for Renewables & Efficiency (DSIRE) RPS data page—Datasets available for download in .xlsx format
- National Renewable Energy Laboratory (NREL) Energy Analysis Portal—Resources on renewable energy policies, and interactive web tools
- Energy Information Administration (EIA) U.S. Energy Mapping System—An interactive energy resource map with a myriad of data layers to explore
- DSIRE State RPS Page—Visit for detailed information on RPS and complete legislation
- Natural Resources Defense Council (NRDC) State Profile—Your state has a NRDC renewable energy resources profile; find state resources and learn about the technologies being used
- U.S. Department of Energy Office of Energy Efficiency and Renewable Energy (EERE)—State Profile—Access your state’s EERE page, and find information on renewable resources maps, energy statistics, and news