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Missouri Solar Incentives: Tax Credits & Rebates Guide 2024
  • Written by Faith Foushee
  • |
  • Edited by Jamie Cesanek
  • |
  • Last updated 09/21/2023

Estimate your home’s solar cost and savings

20-year savings
information
$11,942
Incentives
information
$8,640
Upfront cost
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$28,800
Payback period
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13 years
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Key Points

  • Solar power currently accounts for about 1% of energy generated in Missouri, and the industry is expected to grow as more homeowners install solar panels in the next five years.
  • Missouri homeowners can benefit from federal and local incentives to make solar panel installation affordable.
  • Solar energy in Missouri can save you significant money in the long run, despite the upfront costs.
  • Missouri residents can also explore other ways to benefit from solar energy, including solar leasing and community solar programs.

Solar power in Missouri

Solar energy in Missouri has been growing steadily for years. With enough solar infrastructure to power more than 55,000 homes, the state still has a lot of catching up to do. Over the next five years, however, Missouri plans to grow its solar-generating power by more than 400%.

With so much solar growth in the works, now is a great time for residents to consider solar panels in Missouri. Despite the high initial cost of installation, federal and state Missouri solar incentives help to lower these expenses, and energy savings promise to bring a big return in the long run.

Curious if solar is a good investment for you? Read on to learn about the costs and benefits of residential solar in Missouri.

Ready to go solar? Call 877-307-9291to be connected with a solar expert today!

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Missouri solar panel cost

The cost of solar panels in Missouri differs for every household, depending on your energy needs and priorities. Solar is customizable — several key factors can influence your total system price, including its size and configuration, components, and local labor and permitting costs. According to the Lawrence Berkeley National Laboratory, the U.S. average price per watt for solar panels is $3.67, with an average system size of 8.6 kilowatts (kW) and a total price of $31,558.

Meanwhile, data from Find Energy shows that Missouri homeowners pay an average of $3.37 per watt for solar panels, with a typical 10-kW system costing around $33,370. However, your net cost could be much lower after factoring in savings from federal and local tax incentives.

The following table shows the difference between the U.S. average solar price and Missouri’s average cost.

System
size
Total costNumber of
solar panels*
Missouri10 kW$33,37025–33
U.S.8.6 kW$31,55822–29

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

How does Missouri solar save you money?

One of the biggest appeals of solar power for many homeowners is the potential to save significantly on electricity bills. If you offset the full price of electricity — $148.37 per month on average in Missouri — you could recover the cost of your 10-kW system in roughly 13 years.

Your system cost and payback period largely depend on what size array you choose for your home. The following table provides a range of potential prices for Missouri system sizes based on the state’s average price per watt.

System
size
Total costNumber of
solar panels*
6 kW$20,22015–20
8 kW$26,96020–27
10 kW$33,70025–33
12 kW$40,44030–40
14 kW$47,18035–47

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

The best Missouri solar incentives 2023

Although installing solar panels is a significant investment, federal and local governments have implemented solar incentives and rebates to make solar panels more accessible to the average homeowner.

The U.S. government offers a solar tax credit for homeowners who buy solar panels. The credit is set at 30% for systems purchased in 2022 through 2032. It allows you to recover thousands of dollars from your solar panel purchase on your tax returns. The credit will drop to 26% in 2033 and 22% in 2034 before expiring in 2035 unless Congress renews it.

As for Missouri solar panel programs, the state requires utility companies to offer net metering for customers with various types of green energy, including solar power. Other solar incentives in Missouri include rebates offered by various utility companies, including Columbia Water & Light, Evergy (formerly Kansas City Power & Light), Liberty Utilities (formerly Empire District Electric), and Ameren Missouri.

ProgramDescription
Net MeteringSeveral major utilities participate in the state’s net metering program, offering credits toward utility bills.
Residential Clean Energy CreditThis 30% federal tax credit can be applied to solar systems purchased from the beginning of 2022 until 2032.
Utility Solar RebatesMany of the utilities that offer net metering also offer solar rebates to offset the costs of installation.

Solar incentives in St. Louis

Customers in the St. Louis region may be eligible for Ameren Missouri’s solar rebates and net metering programs. Rebates are available for systems installed between Jan. 1, 2019, and Dec. 31, 2023. Current rebates are calculated at $250 per kW ($.25 per watt) of the solar system you install (up to 25 kW for residential and 150 kW for commercial properties). Review Ameren Missouri’s program details and FAQs for more info.

Solar incentives in Kansas City

Kansas City homeowners can apply for solar rebates in Missouri through Evergy, formerly known as Kansas City Power and Light. The utility serves customers in Kansas City and other parts of Missouri, where residents can apply for its solar rebate program. Like Ameren in St. Louis, the company pays $250 per kW (25 cents per watt) on residential solar systems up to 25 kW and commercial systems up to 150 kW installed through the end of 2023. That means a 10-kW array of solar panels in Missouri would earn you $2,500 in rebates from Evergy.

Solar incentives in Springfield

Homeowners in the Springfield area can apply for a similar Missouri solar rebate, earning $250 per kW ($0.25 per watt) through Liberty Utilities on systems installed through the end of 2023. Learn more about the program and how to apply on the Liberty Utilities solar rebate page.

Solar incentives in Columbia

Columbia Water & Light offers tiered solar rebates for customers in central Missouri. Rebates are based on the size of your system and its capacity during peak energy production, as follows:

  • 0–10 kW: $375–$625 per kW
  • 10–50 kW: $300–$500 per kW
  • 50–100 kW: $150–$250 per kW

Rebates are capped at 100 kW. Columbia Water & Light also offers premium rebates for solar systems designed to perform best during peak-demand times. Learn more on the Columbia Water & Light solar rebate information page.

Why choose Missouri solar power?

There are many benefits to choosing solar panels in Missouri, including:

  • Lower energy costs: Solar panels allow you to power your home with solar energy rather than traditional electricity, lowering monthly utility costs and increasing energy savings. Energy price hikes from the electric grid may have less impact on your budget when you’re relying on solar.
  • Enhance energy independence: Solar panels reduce your reliance on the traditional electricity grid and make you less vulnerable to price hikes during periods of high energy demand. By adding a solar battery to your solar panel system, you can use stored energy to power your home and reduce strain on the grid.
  • Smaller environmental footprint: Traditional electricity generation emits harmful greenhouse gasses into the atmosphere, which pollutes air and water, contributing to climate change. Solar is a renewable and clean energy source, and its production doesn’t emit harmful gasses. As a result, switching to solar power can reduce your home’s carbon footprint.

Should I buy or lease my solar panels?

There are a few different ways to get solar energy in Missouri, and you may wonder whether buying or leasing solar panels is the better option for you. While both choices have important benefits, buying solar panels is ultimately more cost-effective for a few reasons. There are also several other options to explore if neither works for you. The following table highlights the pros and cons of each financing method.

Payment MethodBenefitsDrawbacks
Cash purchaseHighest long-term savings, complete system ownership, eligible for Missouri solar incentivesHighest upfront cost, not accessible for everyone
Solar loanEventual system ownership, still eligible for incentives, long-term savings still highInterest fees cut into savings
Solar leaseNo installation costs or maintenance fees, still benefit from lower energy costsNo panel ownership, no incentive eligibility, may have to pass lease on when you move
Power purchase agreementNo installation costs or maintenance expenses, still benefit from lower energy costsNo panel ownership, no incentives, less long-term savings
Community solarNo installation costs or maintenance expenses, still benefit from lower energy costs, easy to subscribeNo panel ownership, no incentives, less long-term savings

Ultimately, if you can buy your system outright or finance it with a loan, you’ll benefit from full ownership and greater savings in the long run.

Missouri solar companies

Missouri has over 130 solar companies, including manufacturers, installers, and other solar businesses. Researching the components that come with getting solar panels for your home can help you choose the best company for your situation. To help with your research, SaveOnEnergy has a comprehensive solar energy guide. Here are a few popular solar companies to consider in Missouri:

Solar installerYear foundedFinancing optionsWarranty terms
Primitive Solar Company Logo2018Cash payment or solar loan30-year performance and 25-year panel warranties
Sunpower solar company logo1985Cash purchase, solar loan, or lease25-year full system warranty
ADT Solar Company Logo2011Cash purchase or solar loan25-year manufacturer warranty and production guarantee

What to look for in a solar contractor

Finding the right solar installer is one of the most important parts of planning for residential solar in Missouri. These contractors can help you navigate the process from start to finish, including the nuts and bolts of financing. To ensure you find the right partner, consider the following:

  • Installer credentials: Only work with fully licensed, bonded, and insured contractors for solar installations in your area. Be sure the same criteria extend to their subcontractors, too.
  • Expertise and reviews: Look for contractors with at least a few years of experience and many solar installations under their belt. Ask plenty of questions about their solar technology, system warranties, and more to ensure they know the job inside and out. You can also examine their reviews to determine whether other customers have had positive experiences.
  • Communication and transparency: This is a significant investment for you, so don’t tolerate poor communication or any uncertainty about the job timeline or costs. A good solar contractor will be direct and let you know what to expect.
  • Pricing: It’s important to compare installer quotes against the average cost of solar panels in Missouri to ensure you’re getting a competitive offer. It’s also helpful to receive multiple quotes before signing a contract.

Beware of free solar panels in Missouri scam

You have much to gain by opting for solar energy in Missouri. However, weighing the upfront costs and understanding what you’ll need to spend out of pocket is still important. Although you may find some enticing offers for free solar panels in Missouri, these scams are too good to be true — and may cause you to enter a misleading contract. Missouri solar panels will save you money in the long run, but it takes time to recoup the costs of your investment.

Important solar installation factors to consider

Before you install solar panels on your home, there are a few things to consider to determine if they’re the best fit for your home.

  • Roof condition: According to the Department of Energy, solar panels are best for roofs in good condition and with south-facing slopes between 15 and 40 degrees.
  • Sun exposure: Solar panels are most effective in areas with abundant direct sunlight. They won’t produce as much electricity if trees or other objects obstruct their access to sunlight.
  • Neighborhood organization: Some homeowners associations (HOAs) have restrictions around the use of solar panels, limiting their size or requiring approval before installation. Missouri law prevents HOAs from blocking solar installations, but you may still need to work through some neighborhood rules. Your installer can help you navigate potential obstacles.

Solar power FAQs

  • Switching to solar can reduce your energy costs and provide major savings in the long run. But it’s only a good investment if you produce enough solar power to save money. Before you commit to installing solar panels in Missouri, examine factors like the angle and direction of your roof, the amount of shade it gets during the day, and your total energy usage to help you determine how quickly you’d recoup the costs.

  • Your savings will depend on the amount of energy your panels produce and your typical energy usage. Missouri homeowners pay an average electricity bill of $148.37 per month, meaning you could save over $1,700 per year if your system covers all your electricity needs.

  • It’s critical to compare your options for solar installers before deciding on a partner to ensure the project fits your budget and that experts do the work. SaveOnEnergy can help connect you with a trusted solar installer near you. To get started, enter your information in our solar estimator or call the number on your screen.

  • Solar power is a renewable resource, meaning the sun’s power doesn’t diminish when you tap into it. Additionally, unlike traditional electricity generation, which is done by burning fossil fuels, solar energy production doesn’t emit harmful greenhouse gasses into the atmosphere. Using solar energy in Missouri can reduce your carbon footprint.

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