Missouri Solar Incentives: Net Metering Solar Program, Tax Credits, Rebates

Georgette Kilgore headshot, wearing 8 Billion Trees shirt with forest in the background.Written by Georgette Kilgore

Solar Panels | March 18, 2024

Woman with a solar panel collecting money from Missouri solar incentives that lower the cost of solar panels in Missouri for business and home solar panel installation using solar tax credits, rebates, net metering and more.

Using Missouri solar incentives and solar tax credits is a great way to reduce the cost of solar panels in Missouri.

The state has put in place, in addition to the Federal Solar Investment Tax Credit (ITC), a number of programs and initiatives that are designed to help people disconnect from the main grid (or help supplement it) using green energy sources, like the sun.

In fact, the state passed financial benefits in Senate Bill 7929 to encourage business entities and individual homeowners to embrace renewable energy sources like solar and wind.

This guide outlines how you can use Missouri solar incentives to lower the cost of solar panels in Missouri for your home or business.

What Are Missouri Solar Incentives?

Put simply, Missouri solar incentives are government-sponsored programs that aim to encourage the expansion and adoption of solar energy across the state.

Currently, the state has 24 existing solar plants, which help reduce the cost of electricity and provide green power.

Map showing locations of solar plants in Missouri using yellow markers and Missouri solar panels with a US cut out showing the location of the state of Missouri.

The incentives are legitimized by Senate Bill 7929. In this bill, various financial incentives outlined include; tax credits and rebates to individuals or organizations that buy and install solar panels as well as other sources of energy.

In addition, under Senate Bill 7929, utilities in Missouri are expected to provide net metering, which enables customers to obtain credit for the surplus energy generated from their newly installed solar systems.1 Essentially, this will bring down the cost of solar panels in Missouri.

Who wouldn’t want to cut down on spending in this age where the cost of living is over the roof? Essentially, anyone who runs a solar system could save on energy bills over the long haul.

More so, people and organizations that answer the call to adopt solar energy and other renewable sources like wind are anything but ecologically conscious and mindful of mitigating the carbon footprint, leading to a cleaner environment.

Who Is Mandated To Provide Missouri Solar Incentives?

  • Missouri State Government: Like all state authorities across the U.S., Missouri State Authority has been leading in providing incentives.
    This is com by the urgent need to break free from fossil fuels and help salvage the climate from activities that may endanger our survival.
  • For instance, the Missouri Department of Economic Development (DED) provides one of the Missouri solar incentives in the form of $ 50,000 worth of tax credits to business entities to invest in the solar industry.
    Moreover, with DED, businesses, not-for-profit entities, and public establishments can access low-interest loans to fund projects related to solar energy.
  • Missouri Public Service Commission (PSC) provides incentives for installing solar energy systems in residential homes. Thus, to help residential homeowners cut back expenses on energy bills, the PSC offers rebates to the tune of $5000.
    In the same measure, it has allocated $50,000 for businesses.
  • Utility Companies with an interest in Missouri provide solar incentives to their customers. Are you in Missouri and wondering where to get rebates from?
    Ameren Missouri provides rebates from as low as $5000 to $50,000 for residents and business clients who buy and install solar systems.

With the latitude of these Missouri solar incentives, Missouri has positioned itself as a state that looks into the future of clean energy.

Furthermore, the solar tax credits motivate residents, the business community,  and anyone willing to move to Missouri to embrace renewable energy and help reverse the adverse impact of environmental pollution.2

Cost of Solar Panels in Missouri: How Much Are Solar Panels in Missouri in 2023?

The current cost of solar panels in Missouri stands at $2.70/w. Considering the panel size of 5 kilowatts (kW), the standard installation cost would range from $11,475 to $15,525, with $13,500 as the average.

Eye-level shot of an angled solar panel array situated on a field with wooden fence around it.

(Image: USDA NRCS Montana23)

However, when you account for the thirty percent federal Investment Tax Credit (ITC), and state and local waivers, the resultant cost would most likely drop by a few thousand dollars.1

Unlike a solar company, these costs represent consumers who compare prices on the online portals that can save 20%.3

An important variable to note is the fluctuating cost of solar panels evident in Missouri. Prices differ based on the type of materials used to make solar systems.

Superior solar panels cost anywhere from $12,000 to $15,000 for a typical system.

Additional variables such as installation fees, permits, and utility costs impact the total cost of solar panel systems.

Furthermore, the rates charged at the grid and the energy saved annually can impact the general cost.

With many government incentives within reach, Missouri residents have no reason to whine but take advantage of freebies. The state authority and utility establishments provide residential and business communities with rebates and tax credits to cut back solar panel costs, which has been effective.

Ameren Missouri provides financial aid as a utility company for part of the installation. This noble model drives the cost of solar panels in Missouri down.

This will make solar panel installation sustainable, which means more people will go green.

Many establishments invest in fabricating and installing solar panel systems as renewable energy grows. A litany of Missouri solar dealers and installation entities has been driving the process down, stimulating adoption.

As panels and other equipment cost drop, solar panels remain a sustainable energy source in Missouri.4 While carbon footprint remains contentious, solar panels do not hurt the environment, and coupled with affordable prices, push demand from homeowners and businesses alike.

Although different variables seem to impact the cost of solar panels, Missouri residents have various sources and incentives envisioned in Senate Bill 7929 that would help reduce costs and make their quest to embrace clean energy worthwhile.

Solar Panel Cost Calculator Missouri

As more people and businesses adopt renewable energy sources, such as solar and wind power, the cost of solar panels in Missouri is a significant determinant, like many other places.

Luckily, many resources exist to help you calculate the cost of installing solar panels across any state, including Missouri.

You can utilize a novel application such as the Solar Panel Cost Calculator Missouri to estimate the cost of installing your solar power.

This solar cost generator considers many factors, such as property size, the intensity of sunlight, and electricity cost in your area.

In the meantime, the calculator enables you to understand your outlays and what you intend to pay and save over time before you make up your mind.

How To Use Solar Panel Calculator To Determine Energy Consumption in Missouri

You may only estimate your solar power needs by first understanding how much you consume. Scanning your annual bills can help you understand how much solar power you need or have been using.

This is how to do it. Compute kilowatt hours used yearly with a thirty-day month as a baseline.5

Thus, you must have your estimates right before you adopt solar power. However, just because you don’t have your bills at hand does not in any way serve as an impediment.

Instead, you can subcontract a solar design services to help generate power bills.

Nonetheless, it would help if you determined the needed kWh to use the calculator accurately. Below are some simple steps to using a calculator.

  1. Input the annual kWh
  2. Find Daily Solar Hours
  3. Input the % of the power bill to cover
  4. Click calculate

When the calculator returns the approximated kW, you can review the costs versus brands and options. You can determine the needed consumption based on your need, space, and budget.

The table below gives a rough estimate of Kansas, Springfield, and St. Louis’s daily solar hours.

Once you determine the annual usage in kWh, divide it by kWh per 1kW to approximate the solar range needed for your project.

CITY SOLAR HOURS kWh per 1kW
1 Kansas City 5.04 1,414
2 Springfield 5.16 1,412
3 St. Louis 4.99 1,387

In some areas, electricity bills include a summary chart showing the average daily kWh over the past year. Thus, enter the kWh used per year.

If the totals are not accessible, you need to add monthly kWh and enter the calculations in the calculator.

Now, what is solar energy usage for an average household in Missouri? To answer this question, you need a rough idea of the national average in terms of consumption.

An average home in the U.S. consumes 30kWh daily.

When you multiply daily consumption by the number of days in one year, the average annual consumption would be approximately 11,000 kWh. This value should be entered in #1.

Next, determine how much time you’re exposed to sunlight daily. In the U.S., for instance, an average home has 5 hours of solar exposure, which should be entered in #2.

Map of the state of Missouri with each county colored to show the daily peak sun hours in each Missouri county ranging from 4.17 to 4.61 daily hours of sunlight.

Next is the power bill amount you intend to cover. It can range from 50%-150%, and the choice is yours. So, if you opt for 100%, input the number 100 in #3 and click calculate.

Based on this example, the returned answer should be 7.64, which implies that 7.64kW of solar is expected to generate 11,000 kWh in your areas annually.

At this point, you will be a pro when calculating the required kW for a solar kit to generate your power consumption in kWh.

How Does the Cost of Solar Panels in Missouri Compare to the National Average?

Homeowners and the business community in Missouri should almost certainly take advantage of the sustainable solar panel costs in the state and make the clean energy initiative enshrined in Senate Bill 7929 a reality.

In terms of comparison, the cost of solar panels in Missouri is $2.93, which is way below the national average of $3.14 a unit. A lower price is an incentive that makes solar panel installation in Missouri sustainable.6

In addition, Missouri’s great state rebates and tax credits present prospects for huge savings during installation. This also brings down initial investments, which makes it favorable.

The standard cost of solar panels for a 6-kilowatt system in Missouri is approximately $15,000. While the national average is about $18,500, the price difference is a huge incentive that allows Missourians to go clean.

Of course, it would cost additional when you want to go big. And since solar panels can last for ¼ a century, you can always recoup installation costs over this period.

Again, Missouri has a net metering framework that allows surplus power into the grid. This means you’ll get credits on your electric consumption, culminating in significant savings over time.

As many players enter the renewable energy sector in Missouri and other states across the country, coupled with technological advances, the cost of solar panels continues to drop.

And if developments in the past ten years that have witnessed a 70% price drop are anything to go by, then we expect prices to plummet and more people to embrace clean energy in the coming years.

The net effect here is that individual homeowners and people will pay less for installation moving forward.

Solar panels have been demonstrated as a viable alternative along this path as the world grapples with reversing the adverse effects of industrial activities on a global scale. Solar panels do not impact the environment negatively in comparison to fossil fuels.

It is, therefore, on this premise that solar panels become pertinent elements in the clean energy discourse. Nevertheless, an issue that seems disregarded in this debate is the carbon footprint solar panels manufacturing process generates.

While solar panels comprise Photovoltaic cells made from silicon, you can only establish the average carbon footprint of these panels by looking at variables such as the types of raw materials utilized in the production, how they are acquired, how panels get manufactured, and the expected lifespan of a forum.

The Cost To Install Solar Panels in Missouri Against the National Average

While the cost of solar panels is relatively higher in the U.S., the federal government has tax-waiving legislation such as the Investment Tax Credit (ITC), which drives installation costs down.

Wide shot of a two-storey building with solar panel technicians and solar panel installation equipment on the rooftop showing how to install solar panels.

(Image: GlacierNPS24)

Thus, with ITC, those in business and individual homeowners can deduct 26% of the collective installation costs from federal income taxes.

This implies you’ll receive a tax credit of $6,500 when you spend $25,000 on a solar panel system. Thus, partly, ITC compensates you for your initial investment, an aspect that makes solar energy easily accessible but also sustainable.

Cost To Install Solar Panels in Missouri Against the National Average
National Average $18,750
Average Range $16,500-$20,100
Low-End $5,500
High-End $65,000
Federal Solar Investment Tax Credit 30%

One of the promises of these ITCs is to offer tax credits to persons and companies that will install solar panels for ten years up to 2032.7

But how does the solar tax credit work if I don’t owe taxes? This is a valid question.

To qualify for a tax credit, you must have the solar system installed on your primary and, if not, your secondary U.S. residence. You also require being tax compliant as much as owning the solar system.

Any citizen who goes green and installs a solar system on their house can claim a 30% federal solar tax credit. What the tax cred does is pretty simple; it shrinks the amount you owe the federal government in the form of taxes in thousands of dollars.

The tax credit is therefore scheduled to drop after 2032 from 30%-26%. Moreover, the installation of solar panels in 2034 will be entitled to 22% in terms of tax credits, and it will be retired in 2035 in residential homes.

Tax credits play a considerable role. In 2022, for instance, the cost shot through the roof due to the uncertainties in the supply chain.

Again, the United States rejected solar panels from different parts of China, which affected the supply chain leading to high demand.

Factors Influencing Missouri Solar Energy: Solar Panels Missouri

Like other parts of the world and across the U.S., Missouri is a frontier in safeguarding the environment.

This is exemplified by a high rate of people resorting to solar panels over electricity.

Wide shot of a part of the Grand Canyon Visitor Center showing solar panel installations mounted on solar panel racking and on the roof.

(Image: NPS Photo by Michael Quinn25)

This is the only way towards a clean environment free of greenhouse emissions. Furthermore, going green has a lot of benefits, including remitting low taxes, augmenting the resale value of your house, and saving on electricity bills.

Here is a list of variables to consider:

Initial Costs

The initial cost is the first aspect to know before you install a solar panel in Missouri. The cost variable is pertinent when considering installing solar energy systems in Missouri.

Now, you can circumvent exorbitant costs by going for cheap solar equipment and getting a fund.

Repayment Period

The time for repaying the solar panel is as vital in this dispensation as federal credit taxes. While Missouri’s repayment period is around 10-16 years, this affords residents ample time and businesses a worthwhile investment.

Net Metering Policies

Missouri is one of the states where net metering is allowed. However, utility companies are also interested in this area, despite offering unfriendly rates that scare people away.8

That said, it is incumbent upon customers to confirm from providers. A lower net meeting would also suggest additional expenses for solar batteries.

This is aimed at reducing power bills while enhancing long-term savings.

Climatic Conditions

Since Missouri has a sunny climate, it is better situated among other states for installing solar panels. On average, the state receives sun.

In contrast, the state also experiences extreme weather, particularly tornadoes and strong winds that can damage solar panels.

This indicates that homeowners and businesses can prevent the impact of bad weather by choosing installers with a good warranty.

Generally, solar panels are a good investment providing significant savings.9 But, solar panels are unsuitable for all Missourians, meaning customers should assess their solar property possibility before switching.

Some factors include; monthly electricity bills, estimated payback period, property shading, or roof direction.

How To Install Free Solar Panels in Missouri

If you are wondering how to get solar panels for free, try the wide range of tax credits and rebates.

Although this likely won’t bring your costs down to zero, they can help.

Eye-level shot of solar panels situated on the ground showing the reflections of the blue sky and large white clouds.

(Image: USDA photos by Rebecca Kaufman26)

For instance, with a Federal Solar Tax Credit (ITC), you can enjoy up to 30% in savings on total solar systems. However, solar incentives will expire toward the end of 2034.1

Tax breaks such as the Missouri property tax are also the best way to install panels cost-effectively. Fundamentally, these exemptions will eliminate additional costs relating to installations.

Despite the high initial solar power installation costs, the system augments property value.10

Solar rebate programs offered by utility companies are also a great way to install solar energy in Missouri and elsewhere.

Solar Rebate Programs Offered in Missouri

In addition to the ITC, there are a number of programs that can help reduce the cost of solar panels in Missouri.

  • Ameren Missouri Solar Program: This initiative is for residents of St. Louis. In addition, the size of the rebate is influenced by the solar system’s size; eligible businesses or homeowners can save $2,625 for installing a 10.5-kW system.11
  • Liberty Utilities Solar: The program gives you $0.25 worth of credit for every watt when you install solar energy.
  • Kansas City Power & Light Solar Rebate: This program gives residents and business entities $0.25 worth of credit for every watt on a solar system purchased. While it takes effect after installation, people save more than $2,525 in the long run.
  • Columbia Water & Light Solar Rebate: With this program, you often get $375-$625 kilowatts credit when buying a solar system worth 10kW.
    However, anyone buying a system between 10-50kW gets $400 worth of credits for every kW.

This shows that as soon as you install solar panels in Missouri, you attract many incentives.

Nonetheless, federal solar tax credit is best, allowing residents to save up to $ 8,1559.1 Equally, net metering is the best option because it improves property value and reduces electricity costs.

Again Missouri net metering is ideal for property owners with two-way meters. But homeowners with limited time to apply for solar tax credits can try utility rebates, especially if one is a customer of Columbia Water & Light, Empire District Electric, or Evergy.

Missouri Wind and Solar Energy: A New Trend

In Missouri, solar power is a rapidly growing sector with a capacity of 42.7% of electricity used across the state.12

Furthermore, it uses a net energy metering tool while crediting additional energy at an avoided rate.

Pie chart showing Missouri renewable energy consumption including Missouri wind energy, biomass energy, geothermal energy, hydroelectric energy and solar energy in the state of Missouri for 2022.

Again, solar farms in Missouri based in Christian County produce 9% of the electricity for Nixa City.

There are also proposals to convert 3,100 acres of land near Kansas City International Airport into solar farms. Experts indicate that this vast land will produce 500WM of power, which is adequate to electrify about 70,000 homes.

Again, this would make Kansas City the home to America’s largest solar farm.

Nonetheless, Richmond, Green City, and Utah have solar farm with the capacity to power 10,000 homes.13 Such a massive power-generating system is key to resolving recurrent power failures.

Equally, wind farms in Missouri play an essential role in generating renewable energy. According to the American Wind Energy Association, Missouri generates about 1,044 kW, enough to electrify 288,000 households.

Nonetheless, despite their low impact on the environment, local residents have had issues with wind farms in Missouri, with most worrying about their adversarial effect on wild animals, topography, and property value.

Thus, creating wind energy in Missouri is critical for achieving sustainable energy. The wind is good for the environment, and just like solar power, the wind does not have a carbon footprint, as evidenced by fossil fuels.

Pros and Cons of Missouri Wind and Solar Energy

Here is a list of advantages related to wind and solar energy.

Clean Energy Sources

Not only are wind and solar energy sources renewable, but they are also clean with no adverse effects on the ecosystem. Residents and businesses that migrate to solar energy will lessen the specter of a warming planet while promoting ecological sustainability.

Subsequently, compared to traditional energy generation methods, clean energy sources such as solar and wind do not require water to generate power, which is good for the environment.

Economic Development

Federal tax credits and incentives offered at the state and local levels have witnessed the exponential growth of the solar industry in Missouri. This has, nonetheless, led to the creation of economic growth and job creation.

Increasing the demand for clean energy also means more jobs for the locals and revenue for startups that invest in this industry.

Energy Sustainability

Harnessing wind and sun energy would eliminate overdependence on electric power. Moreover, over-dependence on solar energy will enhance the state’s security and curtail geothermal fields that emanate from energy.14

Power Resilience

The distribution of solar energy is good when it comes to enhancing energy resilience. It lowers the pressure on the grid during peak hours.

This brings about distributed cum decentralized energy production. It also enhances grid stability while minimizing the likelihood of brownouts and outages.

Solar energy plays an essential role in the event of a natural disaster; it is reliable and off-grid at the same time.

Flexibility and Scalability

Although wind and solar energy offer flexible and scalable alternatives for energy needs, it supports different power requirements and limits. The flexibility that comes with such standalone systems makes it a reliable option for individuals and businesses.

Here is the list of disadvantages and challenges of wind and solar energy.

Exorbitant Initial Costs

While federal energy credits coupled with state and local incentives have led to low prices, the initial investment, which includes installation and all needed devices, can impede change.

Random Problems

Solar power is derived from the sun, an aspect that makes it a random energy source during bad weather. This also makes it pertinent to interlink solar and power to counterbalance when the climate is unfavorable.

Harmonizing Sustainable Development and Environmental Issues

Setting up large-scale wind or solar systems would call for huge trucks of land, which may lead to habit loss or soil degradation.

Moreover, competition for community land may bring about some conflicts of sorts, which then necessitates the need to have solar systems installed on rooftops.

In addition, under current systems, the mining of materials is a huge carbon cost, and the manufacturing and disposal of solar panels and batteries reduces the effectiveness of this net zero energy option.

Enhancing Obsolete Systems

Wind and solar energy devices require substantial improvements on the traditional power grid, which comes at an extra cost.

Partnerships and collaboration among regulators, the solar sector, and utilities are indispensable to support renewable energy adoption.

The State of Solar Installation Missouri

There is a wide range of solar installers in Missouri. There is quite a number of certified installers across the state that can make your work easier.15

Wide shot of a solar panels mounted on an angled racking system situated on an open field with no leave on trees and sky in the background.

(Image: USDA Photo by Lance Cheung27)

Several Kansas-based companies specialize in residential, agricultural, and commercial solar installation. With rising energy costs, these company helps homeowners install solar systems to enjoy tax credits and save the environment eventually.

Homeowners are fond of this question: Does solar increase home value? Of course, yes.

Home buyers are willing to pay more for solar-powered residential properties than non-solar homes.16

Furthermore, Kansas-based companies provide solar systems for agriculture and panel roofing for commercial properties.

As certified solar installers, these companies help organizations and homeowners design a system to meet their residential or business needs.

Besides, these companies educate interested buyers on available solar systems. Apart from a solar installation, they have licensed roofers and general liability insurance to safeguard property against damages.

In the last 7 years, for instance, solar installing companies in Missouri have been assisting homeowners in choosing and installing solar systems.1 In addition to cost saving, these companies educate homeowners on what solar energy is and how renewable energy sources are associated with environmental protection.

Consequently, solar energy service provider firms refrain from coercing customers into installing solar systems; instead, the skilled installers educate the customers on available options.

Reputable companies offer a warranty of 25 years of all solar installations. In addition, they conduct site visits to ensure the property is structurally sound.

Again, they repair defective fixings done by other installers.

Some companies reduce electricity expenses by helping homeowners depend on green energy. Moreover, they work with homeowners to determine the shading, roof type, energy consumption history, and electricity status.

Moreover, companies in Missouri help property owners to choose the appropriate financing option and solar incentives. They deploy skilled technicians to ensure seamless installation, which takes at least two days.

While some offer the best in-house solar financing at competitive rates, they collaborate with property owners to minimize electricity costs and reduce greenhouse emissions.11

Missouri Solar Program: What Is Missouri Solar Tax Credit?

The state solar program encompasses federal, state, local, and utility providers.17

The state solar tax credit includes net metering, solar loans, sales tax, and property tax exemptions. In addition, these incentives enable businesses and homeowners to offset taxable state income.

Screenshot of Missouri Department of Revenue for forms showing a cropped Sales and Use Tax Exemption Certificate to emphasize the section that can filled out to apply for solar panel sales tax exemption.

(Image: Missouri Department of Natural Resources28)

Again, the incentives are determined by the percentage of the cost of the solar system.

  • State Sales Tax: While the state does not provide homeowners sales tax for solar, as per the Senate bill SB 881, businesses are exempted from buying specific commercial solar energy systems.
  • Property Tax: Missouri is one of the states offering property tax exemption. The state also exempts county, local, and state taxes on installing solar systems.18 This gives homeowners the right to claim residential solar arrays annually.
  • Solar Loans: Residential owners across the state can get the PACE for solar installation. Even though established under state laws, PACE initiatives are privately funded.17

These solar loans are paid as yearly property taxes. Eligible individuals can access 100% funding for residential solar at a fixed interest rate for 20 years.

Another solar tax credits are the Missouri Energy Savings Program (MOESP), a PACE financing for solar offered in St. Louis County.

In addition, Columbia Water & Light offers loans that attract low interest, anywhere between $15,000-$30,000, to facilitate easy access to solar panel systems and installation services.

Net Metering

In Missouri, utility companies cannot levy Demand Charges against residential owners. While utility companies can provide net metering services, any extra power generated goes to the main grid and plays a key role in offsetting future bills.

At that juncture, it becomes apparent that Missouri has several tax credits. However, only business entities are exempted from sales taxes.

There are also cost-effective solar loans.

In this respect, if you wish to install a solar system, use net metering guidelines. The net metering framework is elaborate and would help you offset installation costs.

For instance, The solar tax credit would make solar energy cost-effective and sustainable.

Solar panel installation across the U.S. is $23, 940 while $27,195 in Missouri. So, why are solar panels so expensive in Missouri without tax credits than the national average?

This is attributable to the premium and expensive solar equipment required to counterbalance energy use.1 Nevertheless, Missouri authorities have green tax credits to reduce equipment costs while saving you long-term.

In spite of the nominal renewable energy assortment, Missouri residents enjoy better incentives than other states. However, most people do not qualify unless solar systems are installed and effectively working with safety measures.

Different Types of Solar Programs in Missouri

Missouri Solar Incentive Program Type Description Occurrence Saving
State Sales Tax State Only businesses installing solar systems within Missouri are eligible for this incentive following the enforcement of sale tax exemption in 2022 Continuous Determined by the size of the system
Solar Property Tax Exemption State This incentive homeowners to claim an exemption on property taxes related to the high cost of solar installation Continuous It depends on baseline property taxes, property value, and system cost
Net Metering Local This incentive is a requirement in Missouri to prevent utility firms from charging solar customers. Therefore, credits can be used to pay for utility bills in future Continuous The dollar amount to save is determined by solar system size, energy production, and needs
Solar Loans Local This incentive finances homeowners to install solar systems. These loans are offered through the Property Assessed Clean Energy (PACE) Once before installation Depends on loan terms, installer, and system size
Utility Solar Rebates Utility Utilities in Missouri offer $0.25/kw for installing solar systems. Applied once after solar system installation Differs based on the size of the system, but on average, roughly $2,525 to $6,750
Federal Investment Tax Credit (ITC) Federal Offset 30% of taxable income of the value of the solar system Once when filing taxes for the tax year $8,159

What Are Missouri Solar Rebates?

Most homeowners and organizations in Missouri are given rebates by utility firms or other companies which promote the implementation of renewable energy sources.

Wide shot of Grand Canyon Visitor Center showing solar panels mounted on the building's roofs with people walking on the grounds and the blue sky in the background.

(Image: NPS Photo by Michael Quinn29)

Hence, these rebates are cash incentives enshrined in Senate Bill 7929 and given to businesses and people that install solar energy systems on their properties.19

Nonetheless, businesses and homeowners must have connected solar energy on their properties to qualify for solar rebates.

The amounts of rebates are determined by the solar system’s efficiency, size, energy utilization, and location. This means interested businesses or homeowners should check with local utility organizations for available rebates.

So, are solar panels worth it in Missouri in this age of rebates? Yes, because rebates for solar energy allow homeowners to offset the installation cost.

Primarily, qualifying businesses and homeowners in Missouri are eligible for $0.25/watt upfront, which implies they can save up to $2,625 for a 10.5-kW system.3

This attempt makes solar panels affordable and accessible across Missouri, decreasing the demand for non-renewable energy. Furthermore, rebates for solar energy can minimize the emission of greenhouses and climate change.

Federal Solar Tax Credit in Missouri

Some federal tax credits on solar include the Production Tax Credit (PTC) and Investment Tax Credit (ITC). For Missouri residents, federal solar credit is an effective incentive, and the government ensures it is available to all first-time solar clients.

Interestingly, the credit is equivalent to 30% of the cost of the solar system. Missouri’s average solar system size is 10.5KW at $27,195, equivalent to an $8,159 federal tax credit.1

But following the enforcement of the Inflation Reduction Act, the federal solar tax credit was reviewed, and from 2033, it will be calculated at 26%, 22% in 2034, and no credit in 2035.

PTC is the solar tax credit that the federal offers for eligible people for the first ten years of the operation of the solar system.20

On the other hand, ITC is a federal tax credit for reducing taxable income for installing solar systems during a tax year. This is one of the best federal solar incentives.

Moreover, rather than being taxed, the ITC offsets your taxable income.

Qualifying projects for PTC or ITC requires an individual or business to be within the U.S., not leased for tax exemption.

Large solar projects can receive more savings if they use PTC in regions with excessive sun. However, projects in less sunny regions can benefit from ITC because such projects require high installation costs.

In addition, the Federal solar tax credit is computed based on the cost of constructing the system.21 Therefore, businesses should recognize expenses to include and establish how much tax credit is for the system.

Ultimately, based on Senate Bill 7929, solar panels installed till 2034 will be exempt from taxes, and you can claim energy credits from your income by filling out IRS Form 5695.22

However, people need to know that solar rebates from the government do not lead to a reduction in federal credits. Nonetheless, these incentives lead to long-term savings, which then makes solar panel purchase and installation sustainable.

This platform is committed to letting you skim through highly engaging and informative articles on many issues, but more importantly, on issues to do with sustainability.

So, are solar panels worth it in Missouri?

Yes, they are.

Understanding how Missouri solar incentives lower the cost of solar panels in Missouri is the first step to installing solar panels for your home.

Frequently Asked Questions About Missouri Solar Incentives

Who Qualifies for Missouri Solar Incentives Based on Senate Bill 7929?

Missouri residents, businesses, and industrial players qualify for the Missouri Solar Incentives. Nevertheless, qualifications may differ based on certain factors, such as income and certified installers.

Can I Save Much With Missouri Incentives?

Yes, the essence of tax credits and rebates is to enable you to save thousands of dollars when installing solar systems.

The Net Metering programs will, for instance, enable you to send surplus power to the main grid, and this helps you to offset your electricity bills.

Can I Get Incentives Available for Other Renewable Energy Systems?

Yes, the Missouri Solar Incentives are also available for other renewable energy sources, including wind and geothermal.

How Is the Missouri Solar Incentives Application Process Like?

Enlisting for this incentive depends on the program. Thus, depending on the program, you can apply after or before installation.

Where Can I Get Application Forms for Missouri Solar Incentives?

If you reside or do business in Missouri, you can download forms from the Missouri Department of Natural Resources Portal. Fill out forms as accurately as possible and ensure the documentation is attached.

Will Federal Tax Credits Bring Down the Cost of Solar Panels in Missouri?

Yes, with a 30% tax credit, the cost of installing solar panels will come down considerably.

Read More About Missouri Solar Incentives


References

1Simms, D. (2023, May 16). 2023 Missouri Solar Incentives (Rebates, Tax Credits & More). EcoWatch. Retrieved June 1, 2023, from <https://www.ecowatch.com/solar/incentives/mo>

2U.S. Department of Energy. (2023). Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics. Energy.gov. Retrieved June 1, 2023, from <https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-Photovoltaics>

3Energy Sage. (2023). Missouri solar incentives and rebates make going solar easy. Energysage.com. Retrieved June 1, 2023 from <https://www.energysage.com/local-data/solar-rebates-incentives/mo/>

4Missouri State University. (2022). Energy. Missouri State | Sustainability. Retrieved June 1, 2023, from <https://www.missouristate.edu/Sustainability/energy.htm>

5Wikipedia. (2023, April 16). Kilowatt-hour. Wikipedia.org. Retrieved June 1, 2023, from <https://en.wikipedia.org/wiki/Kilowatt-hour>

6Southwest Missouri State University. (2023). New Solar Panels Begin Operation on Southeast Missouri State University’s Campus. South East Missouri State University. Retrieved 2 June 2023 from <https://semo.edu/news/2022/08/new-solar-panels-begin-operation-on-southeast-missouri-state-universitys-campus>

7U.S Department of Energy. (2023). Solar Investment Tax Credit: What Changed? Energy.gov. Retrieved June 1, 2023, from <https://www.energy.gov/eere/solar/articles/solar-investment-tax-credit-what-changed>

8Wikipedia. (2023, February 7). Net metering in the United States. Wikipedia.org. Retrieved June 1, 2023, from <https://en.wikipedia.org/wiki/Net_metering_in_the_United_States>

9United States Environmental Protection Agency. (2023, March 30). Local Renewable Energy: Solar. EPA. Retrieved June 1, 2023, from <https://www.epa.gov/statelocalenergy/local-renewable-energy-solar>

10Bopray, A., & Novak, L. (2023, April 6). Missouri Solar Incentives: Tax Credits & Rebates Guide (2023). Todays Homeowner. Retrieved June 1, 2023, from <https://todayshomeowner.com/solar/guides/missouri-solar-incentives/>

11Straight Up Solar. (2023). Missouri Solar Incentives. straightupsolar.com. Retrieved June 1, 2023, from <https://straightupsolar.com/residential/missouri-incentives/>

12Kansas City Missouri. (2023). Solar Farm Project at KCI. KCMO. Retrieved June 1, 2023, from <https://www.kcmo.gov/city-hall/departments/city-manager-s-office/solar-farm>

13Chen, E. (2019, September 4). Ameren Missouri Proposes Solar Energy Farms For Three Rural Cities. St Louis Public Radio. Retrieved June 1, 2023, from <https://news.stlpublicradio.org/health-science-environment/2019-09-04/ameren-missouri-proposes-solar-energy-farms-for-three-rural-cities>

14National Renewable Energy Laboratory. (2023). Solar Energy Basics. NREL. Retrieved June 1, 2023, from <https://www.nrel.gov/research/re-solar.html>

15SolarReviews. (2023). Summary of Missouri solar incentives 2023. Solarreviews.com. Retrieved June 1, 2023, from <https://www.solarreviews.com/solar-incentives/missouri>

16Lawrence Berkeley National Library. (2015). Berkeley Lab Illuminates Price Premiums for U.S. Solar Home Sales. Berkeley Lab. Retrieved June 1, 2023, from <https://newscenter.lbl.gov/2015/01/13/berkeley-lab-illuminates-price-premiums-u-s-solar-home-sales/>

17Mathews, L. (2022, November 11). Missouri Solar Incentives for 2023. LeafScore. Retrieved June 1, 2023, from <https://www.leafscore.com/solar-guide/benefits-of-going-solar/solar-rebates-and-incentives/missouri/>

18Wikipedia. (2023, March 25). Solar power in Missouri. Wikipedia.org. Retrieved June 1, 2023, from <https://en.wikipedia.org/wiki/Solar_power_in_Missouri>

19City of Columbia. (2022). Solar Rebates. COMO. Retrieved June 1, 2023, from <https://www.como.gov/utilities/columbia-power-partners/solar/solar-rebates/>

20Walker, E. (2023, May 10). Best solar rebates and incentives in 2023. Energy Sage. Retrieved June 1, 2023, from <https://www.energysage.com/local-data/solar-rebates-incentives/>

21U.S. Department of Energy. (2023). Federal Solar Tax Credits for Businesses. Energy.gov. Retrieved June 1, 2023, from <https://www.energy.gov/eere/solar/federal-solar-tax-credits-businesses>

22IRS. Residential Energy Credits. IRS. Retrieved June 1, 2023, from <https://www.irs.gov/pub/irs-pdf/f5695.pdf>

23USDA NRCS Montana. Flickr. Retrieved from <https://flic.kr/p/2oceHSd>

24GlacierNPS. Flickr. Retrieved from <https://flic.kr/p/2m6bAy7>

25NPS Photo by Michael Quinn. Flickr. Retrieved from <https://flic.kr/p/2jp9c5M>

26USDA photos by Rebecca Kaufman. Flickr. Retrieved from <https://flic.kr/p/2oovkvn>

27USDA Photo by Lance Cheung. Flickr. Retrieved from <https://flic.kr/p/asqvcW>

28Missouri Department of Natural Resources. Sales and Use Tax Exemption Certificate. Retrieved from <https://dor.mo.gov/forms/149.pdf>

29NPS Photo by Michael Quinn. Flickr. Retrieved from <https://flic.kr/p/2jpbUTq>