As a homeowner in Missouri, you may have questions about the costs and savings of solar energy. Here we guide you through available incentives, financial options, and solar costs.
With the cost of solar panels and solar energy technology steadily decreasing over the years, going solar has never been more affordable—and that’s on top of immediate energy bill savings and incentives that can significantly reduce your project costs by up to 35%. Though some homeowners prefer to pay cash in full, not everyone can pay upfront for a home energy system. Fortunately, there are several solar financing options available to homeowners such as solar loans.
Discover incentives to help make solar more affordable for you.
30% Federal Tax Credit
In August 2022, the Inflation Reduction Act became law. In it are provisions to support solar growth by increasing and extending this federal tax incentive for 10 years! Receive 30% of the full system cost back as a credit against your total tax liability for the year your system was installed. This tax credit is 30% for systems ‘placed in service’ between January 1, 2022 and December 31, 2032.
The tax credit is non-refundable and requires that you have the tax appetite to be eligible. It can be carried over for 1 year. The home must be owned by the taxpayer but they don’t have to be the resident. For example, this can work if you rent your home or if you have a vacation home. Consult your tax professional to find out how this credit can work best for you.
The Ameren Missouri rebate will give back $0.25/watt to the customer. This direct cash rebate is available until December 31, 2023. Maximum array size for a residential system to qualify for the solar rebate is 25 kW (kilowatts).
Please see Ameren Missouri’s “Customer-Owned Solar” Page for more information.
StraightUp Solar has a seamless relationship with Clean Energy Credit Union to provide special financing to help people install solar electric systems on their homes. The Credit Union is focused on providing clean energy loans that reduce the cost of living for members while also contributing toward a more sustainable environment. These loans include solar, electric vehicles, batteries, and geothermal energy. StraightUp Solar works closely with the Clean Energy Credit Union to help customers finance their solar projects.
The solar loan through Clean Energy Credit Union was specifically designed to finance solar projects. It is split into two parts:
We want to make it as easy as possible for our customers to go solar. This financing product is what we offer most often with our solar installations.
You can get a home equity loan or home equity line of credit (HELOC) from your preferred bank. These are home improvement loans that allow you to borrow against your home’s equity. If approved, a home equity loan gives you a lump sum that you repay in equal installments over a set period of time, while a home equity line of credit gives you revolving credit that you can borrow against (up to your limit) and reuse as you pay it back (like a credit card).
Home equity loans typically offer lowest rates and tax-deductible* interest payments*. Banks and credit unions offer home equity lines of credit and check with your financial institution on their terms and conditions.
StraightUp Solar treats home equity loans like cash without any extra charges on our end, as we do not have to provide the financing product. You may encounter additional fees and loan processing payments from your bank though, so factor that into your decision-making process.
* Always contact a trusted tax professional to verify eligibility in your specific case.
Property Assessed Clean Energy (PACE) is a financing mechanism for Missouri homeowners approved by the Missouri General Assembly in 2010. PACE allows homeowners to pay for the solar array by taking a loan against the home and property as opposed to the individual. The loan is paid back through a special property tax assessment which can be covered in monthly payments via an escrow account (if the home is still under mortgage). The voluntary property tax assessment stays with the home and property and can run for up to 20 years. Advantages to PACE financing include; potentially no money down, 100% financing and reasonable interest rates.
This voluntary assessment is secured by a senior lien on the property which provides debt collateral in the event a property owner defaults on the assessment.
It is important to note that while PACE does not increase your property taxes themselves, it increases the bill that is sent to you by the assessor until the solar PV system is paid off. The local government pays the financing institution that offered the loan to support the PACE financing. The benefit of this financing is that the loan stays with the home. When the resident that installed solar moves out the new resident continues to pay for the solar array via the property tax assessment.
Here are some final notes on the different solar financing options available:
Tax incentives – With a solar loan, unlike with solar leasing, you own the solar panel system outright and you may be able to take advantage of tax incentives.
Maintenance and repairs – With a loan, you own the solar panel system and you will have to pay for maintenance and repairs yourself.
Long-term savings – When you purchase a solar energy system through a solar loan, the system will eventually be paid off. After that point, you are generating free electricity for your home without having to make monthly payments, giving you greater long-term savings than systems covered by solar leases.
Selling your home – If you want to sell your home, solar leases can be passed onto the home’s next owner.
Our Project Developers customize pricing for each solar array construction based on three elements:
The good news is the cost of going solar has come down 80% in the last decade, and it is affordable for the average working family.
Projects typically require little money down with financing, or range from $20,000-$60,000 before incentives.
We can estimate your pricing, including incentives and energy bill savings, with some information about your home and electric bill. Reach out for an estimate to get started.
Our handy two-minute quiz asks a series of questions to help you determine whether your home is a good fit for solar. Everyone’s situation is different, and we appreciate the opportunity to learn about your unique interest in solar!
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