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Do your energy bills just seem to keep rising and rising? If you’re looking to give your wallet a break and you live in Missouri, you should look into purchasing a new solar energy system for your home. Now is an excellent time to buy solar energy systems because there have never been as many tax credits and rebates available to lower the costs associated with your purchase.
Although the initial cost of installing solar panels may appear scary, payback periods generally last less than ten years, and you can experience savings for up to 25 years. Keep reading to learn all about how your purchase and installation of solar panels in Missouri can be made more financially accessible.
While there are many reasons to buy solar panels for residents of any state, Missouri is a particularly great state in which to purchase and install a solar energy system on your property. Solar energy production has been expanding and improving over the past decade in Missouri, and it is now a great time for homeowners to get in on this up-and-coming electricity source.
It has also never been cheaper to buy solar panels in Missouri, thanks to the state government’s implementation of several incentive programs to encourage the adoption of solar energy production among industrial, commercial, and residential property owners. Because solar policies in Missouri have begun encouraging the purchase of solar energy systems, it’s very likely that the Missouri solar market will continue to grow for years to come.
Solar panels are a valuable means of generating electricity where sunlight is abundant. Missouri receives nearly 206 sunny days per year, which is one day above the national average of 205 days. The wealth of sunshine in Missouri should only further incentivize you to go solar because solar panels prove to be highly efficient in sunny climates. Plus, installing solar panels will reduce your reliance on fossil fuels, reduce your carbon footprint, and ultimately help mitigate the onset of climate change.
Finally, solar panels can make your home far more valuable. According to Zillow, the average home experiences a 4.1% increase in its value after the addition of a solar power system. This means that, with an average home value of $217,345 in Missouri, the average value increase from solar panels will be close to $8,911.
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The average cost of a solar panel installation in Missouri ranges from $11,730 to $15,870. On a cost-per-watt basis, solar panel installation in Missouri falls between $2.35 and $3.17. These costs have dropped considerably in recent years.
You can save lots of money on your electricity bills when you purchase solar panels in Missouri. When solar panels produce electricity for your home, they can reduce the amount of energy that you pull from the grid, thus lowering your bills. With average electricity rates in Missouri around $0.12/kilowatt-hour (kWh), homeowners can save $53,100 over a 20-year period by installing a 5kW solar system. These energy savings are helped by the fact solar panels can last more than 25 years before needing to be replaced.
There are multiple public and private incentives in Missouri that can help you save on your purchase of solar panels:
|Federal Solar Tax Credit (ITC)||Missouri residents can take advantage of the Federal Solar Tax Credit and get a discount of 26% applied to their tax return.||December 31st, 2022|
|Missouri Solar Property Tax Exemption||The solar property tax exemption means that Missouri residents and property owners will not have to pay additional property taxes for the added value to their homes created by the installation of solar energy systems.||None|
|Net Metering||Net metering allows homeowners that create excess energy to use it as a credit on their next electric bill. All energy providers are required to offer this option to homeowners.||None|
|Kansas City Power & Light Solar Rebate||Customers of Kansas City Power & Light can receive rebates of $0.25 per watt of solar power installed on their homes.
|Ameren Missouri Solar PV Rebate Program||Residents of St. Louis and customers of Ameren Missouri are eligible for rebates for installing a solar energy system. You can receive $0.25/watt up front, which amounts to $2,625 in savings for the typical 10.5-kW system.
|Columbia Water & Light Solar Rebates||Customers of Columbia Water & and Light Electric Company can earn a rebate of $375 to $625 per kilowatt of solar power generation for systems less than 10 kW. Customers may also be eligible for a rebate between $300 and $500 for systems between 10 and 50 kW. Finally, you can get a $400 rebate for installing a qualifying solar water heater.||None|
|Liberty Utilities Solar Rebate||Liberty Utilities offers customers a rebate of up to $0.25 per watt for the installation of a solar energy system.
|USDA REAP Grant||The Rural Energy for America Program assists agricultural producers and rural small businesses reduce their energy costs and consumption by providing loan financing and grant funding to purchase and install renewable energy systems. Eligible participants in the REAP program are agricultural producers, with at least 50 percent of their gross income coming from agricultural operations and small businesses in eligible rural areas.||None|
|State Sales Tax Credit||The state of Missouri does not offer sales tax credits for the purchase of solar energy systems.||None|
The Federal Solar Investment Tax Credit (ITC) is a 26% federal tax credit available for purchased home solar systems installed before December 31st, 2022. Homeowners can apply this credit to their personal income taxes, making it a great incentive available to all Americans, no matter where they live. The American solar industry has grown by more than 10,000% since the ITC was enacted in 2006, creating hundreds of thousands of jobs and bringing billions of dollars into the American economy.
The Missouri Solar Property Tax Exemption excludes the added value of a solar installation in Missouri from your home’s value for tax purposes. Because solar panels regularly increase the value of your home, this tax exemption is a great way of avoiding having to pay taxes on your home’s heightened value.
Missouri passed a law in 2007 that requires all electric utilities to offer “true net metering” to customers with solar PV systems up to 100 kW. This policy means that your solar panels will be connected to the public-utility power grid, and surplus power created by your panels will be transferred to the grid. You can offset the cost of power drawn from the electricity grid as a result of net metering. The minimum amount of compensation that you’ll receive is the avoided-cost rate, which is below the retail rate. While the policy specifics of net metering programs will vary among providers, this remains massively beneficial for solar owners.
A number of utility companies offer rebates for installing photovoltaic (PV) systems (solar energy systems):
The state of Missouri offers access to financing for energy-efficient power systems and upgrades through the Ygrene™ PACE financing program. You may be eligible to receive this assistance if your energy projects include solar, HVAC, lighting, energy controls, roofing, or windows. Moreover, Set the PACE St. Louis, a program only available to St. Louis residents, offers 100% upfront, fixed-rate, long-term financing for qualified energy upgrades, including energy efficiency, water efficiency, and renewable energy systems.
Unfortunately, the state of Missouri does not offer financial incentives specific to nonprofits or businesses. However, your business may be eligible for many of the residential financial incentives.
The United States Department of Agriculture (USDA) has created a program designed to increase investments in clean energy called the Rural Energy for America Program (REAP). REAP assists agricultural producers and rural small businesses reduce their energy costs and consumption by providing loan financing and grant funding to purchase and install renewable energy systems. Eligible participants in the REAP program are agricultural producers, with at least 50 percent of their gross income coming from agricultural operations and small businesses in eligible rural areas.
The state of Missouri does not offer sales tax credits for the purchase of solar energy systems.
Missouri is a great state to invest in residential, commercial, or industrial solar energy systems, especially because the state has implemented a renewable portfolio standard (RPS). An RPS is a regulatory mandate to increase the production of renewable energy such as wind, solar, biomass, and other alternatives to fossil fuels. Because of its RPS, Missouri is committed to growing its solar industry.
With financial assistance from the federal government, the state government, and additional local incentives, Missouri residents have a great deal of support to draw from when purchasing solar panels. The time is right to get into the solar game, with utility prices soaring and the cost of solar energy dropping fast. If you are interested in purchasing, there are many great companies that will help get you set up.
Yes, you should definitely consider buying a solar energy system in Missouri. Solar can save you tons of money on your utility bills and help reduce your production of emissions and your carbon footprint. Plus, a variety of federal, state, and local financial incentives are available to make the purchase of solar panels accessible to anyone.
With an average cost of electricity in Missouri of $0.12/kilowatt-hour (kWh), Missouri homeowners can save $53,100 over a 20-year period by installing a 5kW solar system. These energy savings are helped by the fact solar panels can last more than 25 years before needing to be replaced.
The average cost of a solar panel installation in Missouri ranges from $11,730 to $15,870. On a cost-per-watt basis, solar panel installation in Missouri falls between $2.35 and $3.17.
While it is unlikely that you can get solar panels for free in Missouri, there are numerous federal, state, and local financial incentives that can significantly minimize the costs associated with purchasing a new solar energy system.
There are many federal, state, and local financial incentives for purchasers of solar energy systems in Missouri. These include the Federal Solar Investment Tax Credit (ITC), the Missouri Property Tax Exemption, and a number of rebates for utility companies.
There is enough solar installed in Missouri to power 40,000 homes, and solar accounts for 0.68% of the state’s electricity production.
No, the state of Missouri excludes the added value of a solar installation from your home’s value for tax purposes.
Missouri taxpayers can write off lots of costs associated with the purchase of new solar energy systems. For more information about incentive programs, check out this database of incentives.
At House Method, transparency and trust are our most important values for the reader. That’s why we took the time to create an objective rating system and score each solar energy company/service according to our methodology.
Our research team dug deep into the fine print of contracts, combed through more than one hundred customer reviews, and thoroughly investigated all of each solar energy company’s services, costs, and products. We’ve done the homework for you by researching nearly all of the solar energy companies on the market so you can have the information you need to make the best choice for your home.
We developed a formula to objectively determine the best solar energy companies and give each a score out of 100 based on the following criteria:
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