Incentives to Help You Go Solar in Missouri

Did you know Missouri has over 200 sunny days each year? That’s an average of 4.5-5.0 kWh per square meter per day.1 It’s also more sun than Germany sees, and Germany is one of the world leaders in solar energy production.

Missouri’s electricity costs remained low for many years, and there wasn’t a strong drive to install solar power. As costs have climbed well over 10 cents per kWh range, however, the demand for renewable energy options has increased.2 Additionally, prices of solar equipment in the state have fallen nearly 40% over the last five years.3

We’ve compiled some solar incentive information for residents of Missouri who want to take advantage of current prices. Installing solar power can provide significant utility bill savings over time and is a positive step toward protecting the environment.

State and Utility Incentives

Utilities in the state must meet a Renewable Portfolio Standard (RPS), meaning they must obtain a certain amount of their energy from renewable resources. Utilities can fulfill some of this requirement by “purchasing” solar energy from customers who have solar panels.4

Electrical corporations are mandated to make solar rebates available for systems that become operational between January 1, 2019, and December 31, 2023. The following information may be helpful if you’re interested in a solar rebate program in Missouri5:

• Rebates apply to new or expanded solar electric systems, limited to up to twenty-five kilowatts (25 kW) per system for residential customers.

• Available rebates include a twenty-five cent per watt ($0.25/W) rebate available for systems that have become operational after June 30, 2019, through December 31, 2023.

• Specific information for each Missouri investor-owned utility can be found in their respective Public Service Commission filings; some utilities are offering programs on a first-come, first-serve basis. The filings for more information are listed on this website: https://energy.mo.gov/resources/solar.

Net Metering

Net metering enables some solar system owners to feed excess renewable energy from their systems into the local grid, reducing the demand for fossil fuels. In areas where net metering is available, utilities will offer payments, usually in the form of energy credits, to utility customers who sell their excess energy to the grid.

Since 2008, utilities in Missouri have been legally required to offer net metering. Customers who generate more kWhs than they receive from the grid at the end of the month currently receive an “avoided fuel cost” rate for the extra energy.6

State Tax Incentive

In addition to the utility-based rebate program, homeowners in Missouri who install solar are exempt from property tax increases that result from installing solar panels.7

PACE Financing

PACE (Property Assessed Clean Energy) Financing is a program that involves loaning the cost of an eligible energy upgrade to a homeowner to be repaid over time through property tax bills. PACE is currently available in Missouri through Show Me PACE, which is administered by the non-profit Missouri Energy Initiative. Show Me PACE lenders offer 100% upfront financing for solar installations through fixed-rate loans for up to 20 years. The property owner repays the loan through an assessment on the property. 8

For a complete list of the 88 energy efficiency programs and incentives available in Missouri, including solar energy programs, visit the Missouri Page of DSIRE, a service of the NC Clean Energy Technology Center.

Federal Incentives: Act Now to Get the Most Benefit

As a way to promote clean and renewable energy, the federal government has put in place two nationwide solar incentives that are available to Missouri residents. Homeowners should apply for them shortly after installation is complete. Our experts from LG's Solar Concierge can help you understand these incentives and how to apply.

• The Federal Solar Tax Credit allows Americans in any state to deduct 26% of the cost of their residential solar installation from their federal taxes, dollar for dollar, through the end of 2020. The ITC then steps down to 22% for projects that begin construction in 2021. After 2021, the residential credit is scheduled to drop to zero, although a commercial and utility credit will remain.9 So lock in your ITC advantage by going solar now!

• Customers of a public utility can save money at tax time because the money, credits or subsidies they earn are not taxable.10