Solar PV panel systems in a field for commercial applications
Solar PV panel systems for commercial and industrial applications

Solar Tax Credits & Rebates

Are you interested in investing in a solar system but not sure about the cost? Solar panels are a long-term investment that provides efficient renewable power, saving you money in the long run. There are also federal and state-level tax credits and rebates that make financing solar panels easier and more affordable than ever.

Call Solera Energy at (866) 346-2009 to learn more about our solar system services.

A home made of dollar bills to represent savings from solar power

Federal Tax Credit

A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. The federal government offers a residential solar energy tax credit, which means that if you use solar energy in your home, you can claim this on your taxes for a percentage of the cost of the solar photovoltaic (PV) system.

Solar systems installed between 2020-2021 are eligible for a 26% tax credit. In August 2022, Congress raised this tax credit to 30% for solar systems installed between 2022 and 2032. This means that if you install your PV system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of your system, including equipment, labor, and permitting. In 2033, this tax credit will decrease to 26% and will decrease again to 22% in 2034. This tax credit will expire in 2035 unless Congress renews it.

Federal solar tax credit requirements include:

  • Your system was installed between 2017-2034
  • The solar system is located at a residence of yours in the U.S. (it doesn’t have to be your primary residence)
  • You own the solar system, or you purchased an interest in an off-site community solar project (leased solar panels are ineligible)
  • The solar system is new or being used for the first time (this credit can only be claimed for the ‘original installation’ of the solar system

Contact Solera Energy online to learn more about switching to solar.

Missouri Programs & Rebates

There’s never been a better time to go solar in Missouri than now, thanks to the numerous tax credits and rebates available, including the federal tax credit. Here are some of the various solar rebates and programs available to Missouri residents:

Utility Rebate Programs

While the state does not offer tax credits or rebates, Missouri does have a renewable portfolio standards goal that helps encourage homeowners to seek solar solutions through rebates. Utilities currently offering rebates include:

  • Ameren Missouri Solar PV Rebate Program: Save up to $2,625 on a 10.5-kW system.
  • Columbia Water & Light Solar Rebates: Earn $375 to $625 per kilowatt on systems less than 10 kW; earn $300 to $500 for 10- to 50-kW systems. A $400 rebate is also available for qualifying solar water heaters.
  • Kansas City Power & Light Solar Rebate: Earn a rebate of 25 cents per watt of solar power.
  • Liberty Utilities Solar Rebate: Earn a rebate of 25 cents per watt of solar power.

Property Taxes

As of 2013, Missouri has made solar energy systems exempt from all property value taxes. So, installing solar panels will only raise your home’s value, not your property taxes.

Net Metering

Net metering relates to the grid your solar panel system is connected to and how much power your home produces that is given to the grid. In 2007, Missouri passed legislation that requires all utility companies to offer full retail value to customers with solar systems up to 100 kW. It’s also illegal for utilities to charge fees for connecting your system to the grid.

PACE Financing

Property Assessed Clean Energy financing makes low- to no-interest loans possible for homeowners looking to make energy-efficient improvements to their homes. There are two PACE programs available to Missouri residents:

  • Show Me PACE
  • Set the PACE St. Louis

While neither program will decrease the overall price of solar installation, it will give you more time to pay off the system (and use some of the money you save on energy bills).

Call Solera Energy at (866) 346-2009 to invest in solar today!

Arkansas Programs & Rebates

Arkansas does not offer a statewide solar tax exemption, nor does it have a state rebate for solar panel installation. However, some municipalities offer local property tax abatements, so it’s worth checking with your local government and your solar provider for any potential savings. Many Arkansas utility companies also provide energy-related rebates.

Net Metering

Net metering relates to the grid your solar panel system is connected to and how much power your home produces that is given to the grid. This is where most of Arkansas’ solar incentives come from. The state’s policy maximizes savings by ensuring customers are credited for their excess energy at the full retail rate instead of the avoided cost rates other states employ.

Plus, if you send as much energy to the grid as you consume from it, your utility will issue you a Net Excess Generation credit. This credit can be used to reduce energy bills in months when you use more energy than your solar system’s output.

PACE Financing

PACE financing makes low- to no-interest loans possible for homeowners looking to make energy-efficient improvements to their homes. Arkansas residents can take advantage of it through Advance Arkansas PACE. Loans are then paid back with an assessment added on to property taxes.

See what real customers have to say. Contact the Solera Energy team online or call (866) 346-2009 to learn more about the benefits of switching to solar.

Kansas Programs & Rebates

The state of Kansas offers both solar net metering and a property tax exemption for the value a solar system installation adds to your home.

Net Metering

Current Kansas net metering law states that solar production will be recorded throughout the month. If you generate more energy than you use, then you will be paid for the excess energy at the utility’s “system average cost.”

This means that you will get paid less than retail if your panels generate more power than you need. This is a great reason why Kansas residents should choose smaller solar panels that won’t overproduce.

Property Tax Exemption

The Kansas Legislature passed a solar property tax exemption that might not save you any money upfront, but it will save you thousands in the long run. Installing a solar system adds thousands of dollars in value to your home, but with the property tax exemption, you won’t have to pay extra in property taxes for that home value increase.

Invest in solar and save money on your energy bills. Call (866) 346-2009 to learn more.

Why Choose Solera Energy?

Solera Energy has installed more solar systems than any other company in Missouri. We are also the first solar company in the state. Investing in solar power benefits both you and the environment. When you need solar system services, turn to Missouri’s most trusted solar panel company.

Contact Solera Energy online or give us a call at (866) 346-2009 to schedule solar system services today!

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