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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
- Nearly 5 peak sunlight hours per day make Missouri a nice state for using solar power.
- Missouri residents can claim a 30% federal tax credit on the total cost of their solar panel system installation. This clean energy credit covers all – the equipment and installation costs. All electric utilities in Missouri offer net metering for systems up to 100kW. Net excess generation is credited at least at the utility's avoided cost rate. Credits last for 12 months and then expire.
- Rebates vary based on system size and performance during peak demand. Solar loans are available, with maximum amounts of $15,000 for residential and $30,000 for commercial. Interest rates vary based on loan term.
- Solar PV systems are exempt from property taxes, both residential and commercial. Property value increases by approximately 4%.
- PACE Program offers 100% financing for energy-efficient upgrades, including solar. No prepayments and no payments for up to 12 months. Interest rates vary. Repayment through property taxes is possible.
- Solar easements protect solar systems from shading. Voluntary agreements between property owners. Must be written and recorded.
Save 30% of your PV system cost with Federal Solar Tax Credit
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.
Join net metering program to cover your electric bills
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.
Think of these deals like getting money back or discounts. One deal is a “tax credit.” When you buy solar panels, you can use some of that cost to pay less in taxes. It’s like a discount on your tax bill.
Another deal is a “rebate.” This is like getting a cash refund. After you put in your solar panels, you can get money back. Sometimes, they’ll even take the rebate off the price of the panels when you buy them.
Then, there’s a “feed-in tariff.” If your panels make extra power, you can sell it back to the power company. They’ll pay you for it.
Why do governments do this? Because using sunlight for power is good for everyone. It helps make the air cleaner, creates jobs, and means we don’t have to rely as much on energy from other countries.
For you, these deals mean you save money. You pay less for solar panels, your electric bills go down, and you might even make money selling extra power. Solar incentives make it easier and cheaper to use sunlight for power, which is good for you and the planet.
Take my energy: What is net metering and how it worksColumbia Water & Light provides rebates and loans for solar systems
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.
Solar systems in Missouri are exempt from property taxes
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
Finance your solar project through PACE program
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.
Solar easements help settle debates with neighbors
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.
Check out solar panels near you!
Looking to build a home solar system? Check out solar panels that we have for sale in Missouri
SHOP SOLAR PANELS
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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