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Missouri — Solar Incentives, Tax Credits, and Rebates
The cost of going solar in the St Louis area is more affordable thanks to a large number of state incentives and rebates for homeowners along with the federal solar tax credit.
You can use the federal solar tax credit and state incentives to save thousands of dollars when you go solar.
Missouri Solar Incentives and Tax Credits
Federal Solar Tax Credit
The Investment Tax Credit (ITC), also called the federal solar tax credit, helps you reduce the cost of your solar energy system. You can deduct 26% of the cost of your solar energy system from your federal taxes. There is no cap on the value of your tax credit and it applies to both residential and commercial systems.
The federal solar tax credit is 26% for systems installed in 2022, but the tax credit will drop to 22% in 2023. If you’re debating on when to go solar, it is recommended that you go solar in 2022 in order to make the most of the federal solar tax credit.
Net Metering in Missouri
Net Metering is when your utility company monitors how much energy your home’s solar system produces and how much energy you consume. If your home’s solar system generates a surplus of energy, you will receive a credit from your utility company for that surplus energy.
Homeowners in some states receive full retail rate credit for the amount of surplus energy you send back into the grid. In Missouri, you receive credits at an avoided cost rate for the amount of surplus energy you generate.
Avoided cost rate is the amount it would have cost your utility company to burn coal or gas at one of its plants to generate electricity. Avoided cost rate is going to be less than a full retail credit, but as a Missouri homeowner you still receive credit for the excess energy your home’s solar system generates.
The state of Missouri requires all utility companies in the state to offer net metering to customers with solar power systems up to 100kW. You receive a credit on your monthly utility bill at the minimum of that utility company’s avoided cost rate.
Misouri Property Tax Exemptions for Solar Homeowners
Installing solar panels to your home will increase your home’s value by several thousand dollars. This is due to the substantial energy savings you will receive over the life of your solar power system.
All homeowners in Missouri are exempt from additional property taxes due to installing solar panels on their homes. Missouri does this to encourage homeowners in their state to take advantage of the cost savings from going solar.
Missouri Solar Rebates
Homeowners in the St Louis metropolitan area can take advantage of solar rebate programs that their local utility companies provide.
Ameren Missouri Solar Rebates
Ameren Missouri offers its own solar rebate program to help homeowners who want to go solar. Solar rebates are based on the size of your system and funds are available for solar rebates at $0.25/watt for Ameren customers.
If you are an Ameren customer in Missouri, you can submit an application for their solar rebate program on their website.
DSIRE Incentives Database - Missouri
The Database of State Incentives for Renewables and Efficiency (DSIRE) is a comprehensive database that Missouri residents can use to search for and find solar energy incentives in Missouri and across the entire country.