Guide to Solar PV Tax Credits for Missouri in 2023
As the costs for electricity from conventional sources like natural gas or coal continue to rise, solar energy is becoming a more attractive option every day. Plus, Missouri homeowners are eligible for several solar tax credits and rebates that can make adding a solar system quite cost-effective, with faster returns on your investment, lower energy costs, and increased home value. Keep reading to learn which incentives you may be eligible for.
The Federal Solar Tax Credit
If you install a new solar system anytime between 2022 and 2032, you may be eligible for the Solar Investment Tax Credit that’s provided by the federal government. It offers a tax credit worth up to 30% of the total cost of your solar system, including equipment and installation costs. To be eligible for the tax credit, your solar system must be:
- Installed between 2022 and 2032.
- Located on a residential home, though not necessarily your primary residence.
- Paid for upfront through a loan. Leased solar panels are not eligible.
The federal tax credit offers substantial savings on a new residential solar installation, especially when combined with local incentives.
Rebate Programs From Utility Providers
Missouri offers no rebates at the state level, but it encourages utility providers to incorporate more renewable energy resources into their infrastructure. To meet these goals, several utility providers offer rebates for installing home solar systems, including the following companies:
- Ameren: As part of its Missouri Solar PV Rebate Program, residential solar systems of up to 25 kilowatts that are installed from July 1, 2019, to December 31, 2023, are eligible for a rebate of 25 cents per kilowatt, for a total of up to $6,250.
- Columbia Water & Light: Homeowners can earn a rebate of $375 to $625 per kilowatt for solar systems of up to 10 kilowatts or $300 to $500 per kilowatt for systems of 10 to 50 kilowatts. Solar system loans of up to $15,000 are also available for residential customers.
- Evergy: Formerly Kansas City Power & Light, Evergy offers a solar rebate of up to 25 cents per kilowatt for residential solar systems of 25 kilowatts or less.
- Liberty Utilities: Solar systems installed between July 1, 2019, to December 31, 2023, are eligible for a rebate of up to 25 cents per kilowatt.
Homeowners in Missouri are eligible to take advantage of net metering programs. This means that when you produce extra electricity during the daytime, you can provide it to the utility grid in exchange for a credit on your utility bill. Net metering allows you to offset the costs of the electricity you may use during the night or in cloudy weather. Systems of up to 100 kilowatts earn the full retail value for any electricity they furnish to the grid. Contact your utility provider to learn the details of its net metering program.
Property Tax Exemptions
A solar system can raise the value of your home significantly, but thanks to legislation passed in 2013, adding solar energy to your home will not increase your property taxes, unlike other improvements.
The Property Assessed Clean Energy (PACE) program allows homeowners to receive low-interest or no-interest loans for the installation of a solar system. Although the loan does not reduce the cost of the solar system, having the solar system installed can help you qualify for other incentives, like the federal tax credit. There are two PACE programs available in Missouri:
- Show Me PACE
- Set the PACE St. Louis
Solar Installations in Missouri
When you are ready to save money on your utility bills and make your home more energy independent, contact our team at Solera Energy. We are Missouri’s leading solar installer, and we can design a custom solar system that meets your needs and budget requirements while helping you find all the solar rebates and tax incentives that you qualify for. We offer unsurpassed excellence, integrity, and attention to detail. Our experts are here to help with all your solar needs, from solar panel installations to battery storage solutions and generator backups.