Missouri Solar Incentives
A woman walks into a solar store and asks, “What Missouri solar incentives are available for me?” The solar saleswoman answers, “It all depends.”
This conversation happens all the time at StraightUp Solar. There are several financial incentives offered by the federal government, state government, and local utilities. In Missouri, the value of these solar incentives depends on where you live and your utility. When the federal and local tax credits and rebates are combined, the cost of an array can drop by nearly 30%.
Across all of Missouri, PV solar installation purchases are eligible for the Federal Investment Tax Credit, set at 26% of all the costs associated with the design and installation of the array. This credit is a dollar for dollar reduction in your federal tax liability; however, it is not a refundable tax credit. The remaining solar tax credit value can be rolled over into the following tax year. The investment tax credit is attractive to individuals and businesses with tax liability. Educational institutions, non-profit organizations, and governmental entities can not take advantage of this incentive.
Absent any legislative changes, the 26% Investment Tax Credit will last until December 31, 2020. Next year, the tax credit level drops to 22%. After December 31, 2021 the tax credit value is permanently set at 0% for homeowners and 10% for businesses (see below chart). Please talk to your tax adviser on how the Federal Investment Tax Credit impacts your tax situation.
For Missouri residents, some utilities provide a rebate to incentivize the purchase of a solar array. Ameren Missouri, the local utility for most St. Louisans, offers a 25-cent/watt rebate. The Ameren Missouri Solar Rebate is calculated based on the production size of your array. For instance, if you installed a 7.5 kW array (7,500 watts), your rebate would be 7,500 * .25 = $1,875. Ameren’s 25-cent/watt rebate will expire on December 31, 2023, unless action is taken by the Missouri Public Service Commision. The maximum size for the residential rebate is 25kW and 150kW for commercial or industrial customers. Ameren Missouri also offers a solar net metering policy.
For residents in Missouri who are served by electric cooperatives, check your local utility for any rebates or incentives, as each co-op can set their own policies. Locally in St Louis there are two electric companies aside from Ameren, Kirkwood Electric and Cuivre River Cooperative. These utilities do not offer rebates to their customers. For consumers looking at solar in Columbia, MO the City of Columbia Water and Light, the utility will offer a 50-cent/watt rebate for systems under 10KW, in addition to other rebates based on peak hours.
Time is running out to take the maximum advantage of federal and state incentives. Start your installation by requesting a free site assessment with the form below.