With nearly 5 peak sunlight hours per day, Missouri is a nice state for installing a solar system. And the numerous solar incentives in Missouri will make your project even more advantageous. In this article, we’ll walk you through the main ones.
Key takeaways
The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.
Net metering is the main way in which a solar system pays for itself in the US. The idea is always the same: you can sell your excess solar energy into the commercial grid, gain credits and use them to cover your next electric bill. All electric utilities in Missouri have to offer net metering to customers with solar systems that are up to 100kW in size. Net excess generation is credited to your electric bills at least at the avoided cost rate of the utility. Credits last for 12 months and then expire. Consult with your utility company about the rates and conditions of net metering they offer.
When it comes to solar rebates in Missouri, Columbia Water & Light has an amazing program for their customers which makes purchasing a photovoltaic system much easier. Rebates depend on the size of your system: for the first 10 kilowatts, you get from $375 to $625 per kW. Then for every kilowatt until 50, you get $300 – $500. Finally, there is a $150 – $250 rebate for every kilowatt after 50 and until 100 kilowatts. Rebates are calculated based on how well a system is going to perform during times of peak electricity demand for the company.
Columbia Water & Light also provides solar loans to their customers. The maximum loan size is $15,000 for home solar systems and $30,000 for commercial. There are no prepayment penalties. The interest rate depends on the loan term: 1% for up to 3 years, 3% for 4-5 years and 5% for 6-10 years.
When you add solar panels to your house, your property taxes don’t change, according to Missouri solar law. A solar PV system in Missouri is exempt from any kind of property tax assessment, but that doesn’t mean it doesn’t raise the market value of your house. The incentive applies to both residential and commercial solar installations.
4%
this is how much solar panels increase the value of your house
Missouri has a special financing mechanism for energy-efficient upgrades called Property Assessed Clean Energy (PACE). Homeowners who plan a solar installation can get 100% financing for it through the program with no prepayments. In fact, no payments need to be made for up to 12 months. Interest rates depend on your project and loan term. Some of the money can be repaid through property taxes. The program is available for commercial solar as well. Learn more and check your eligibility at Show Me Pace website.
Installing solar panels is good, but only if your system gets enough sunlight. To protect a homeowner’s right for proper irradiance of his panels, solar easements are created. These documents ensure that the sunlight won’t be blocked for panels by, for example, a tree on your neighbor’s land. The easement should be written down and recorded in the county’s register of deeds. All the conditions of an easement you have to negotiate with your neighbors yourself.
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Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
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