Solar Tax Credits & Rebates
Interested in going solar but not sure about the cost? Check out these federal and state-level tax credits and rebates that make financing solar panels easier and more affordable than ever.
Federal Tax Credit
The solar investment tax credit can be claimed on your federal taxes and is currently set at 26% of the total system cost. Eligibility for the credit is contingent on the following criteria:
- The system must have been installed between 2006 and the end of 2022.
- The system is installed on a residence, though it does not have to be your primary residence.
- The system has been paid for or financed through a solar loan. Leased solar panels are ineligible for the ITC.
It’s important to note that the 26% credit is expected to decrease in 2023 and expire in 2024. So there’s never been a better time than now for residential solar panel installation.
Missouri Programs & Rebates
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.
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 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 is also illegal for utilities to charge fees for connecting your system to the grid.
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, they will give you more time to pay off the system (and use some of the money you save on energy bills).
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 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 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.
Take advantage of these savings and more when you partner with Solera Energy. Call us at (855) 650-7404 or fill out our online form to get started today.