Missouri & Arkansas Solar Incentives: What’s Changing in 2025?
Electricity accounts for over half of total utility bills, making it a key area for reducing household costs. With rates going up each year, many Missouri and Arkansas residents are turning to solar panels to reduce or eliminate electric bills, and the value is undeniable. With rebates and tax incentives available to offset that initial investment, 2025 is a great time to switch to solar.
Missouri Solar Incentives for 2025
Missouri has no state-specific solar tax incentive programs, but homeowners can take advantage of the federal tax credit. The Residential Clean Energy Credit reduces your federal income tax liability by 30% of the cost of solar panel installation for your home. The solar tax credit is nonrefundable and does not go toward your tax refund, but it can be rolled over to the next tax year.
City of Columbia Utilities Rebate
Residents using City of Columbia Utilities can get a rebate for their solar system based on its production capacity during peak times. Peak times are when electricity is most expensive for the utility to provide, typically hot afternoons during the summer. The rebate is $500 per kW. You can use their solar rebate calculator to estimate your rebate based on system capacity, array tilt, and array azimuth.
Net Metering in Missouri
Solar panels often generate more energy than your home uses, especially in the middle of the day in the summer months. If you opt for solar battery storage, you can store electricity to use during peak times or in the event of an outage. For those without a solar battery system, you can opt for net metering.
Missouri’s Net Metering and Easy Connection Act requires all utilities to provide net metering and connection to all residents. Net metering is a system in which utilities provide customers a credit when their solar energy system generates more power than they use during the billing period. This allows you to earn billing credits on the power your solar panels generate for free. However, in Missouri, the credits expire after 12 months; they cannot be redeemed for cash.
Arkansas Solar Rebates & Tax Credits
Like Missouri, Arkansas doesn’t provide any statewide incentives to go solar, but the federal tax credit still applies.
Net Metering in Arkansas
In Arkansas, net metering in 2025 will earn you between 4 and 6 cents for each kWh of excess energy your solar power sends to the grid. This credit will be applied to your account, and any unused credits in excess of $100 can be cashed out after 24 months.
Choose Solera Energy To Take Advantage of Solar Incentives
The solar landscape evolves rapidly, and it can be tough to keep track of the changes, especially for those who are new to the technology. The good news is that there are plenty of savings to be had between the ongoing federal incentives, local incentives, net metering, and federal rebates that pay you to switch to electric home appliances you can power with your solar energy system. Solera Energy can help you make the most of 2025 solar incentives in Arkansas and Missouri. We were the first solar company in Missouri, perform more solar installations than any of our Missouri competitors, and proudly remain a leader in the region.
Ready to go solar in 2025? Get started in Missouri or Arkansas when you contact Solera Energy today.
Here’s Why Our Customers Love Us
