Updated February 21, 2023
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 some financial incentives offered by the federal government and local utilities.
In Missouri, the value of these solar incentives depends on where you live and your utility. When federal tax credits and utility rebates are combined, the cost of an array can drop by nearly 35%.
That’s on top of immediate savings on your energy bill, protecting you from rate hikes.
Please note, the Ameren Missouri Rebate will be expiring soon. Learn how you can take advantage of this rebate before it sunsets.
Across all of Missouri, PV solar installation purchases are eligible for the Federal Investment Tax Credit (FITC), set at 30% 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. With the passage of the Inflation Reduction Act in 2022, non-profit organizations and government entities can now take advantage of this incentive through Direct Pay.
This federal tax credit is 30% for systems ‘placed in service’ between January 1, 2022 and December 31, 2032. After 2032, the tax credit drops down. Consult your tax adviser on how the Federal Investment Tax Credit impacts your tax situation.
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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 10 kW array (10,000 watts), your rebate would be 10,000 * .25 = $2,500.
Ameren’s 25-cent/watt rebate will expire on December 31, 2023, unless action is taken by the Missouri Public Service Commision. Your system must be installed and pass final inspection from your local jurisdiction by the deadline to receive the rebate.
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.
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