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 the federal and local tax credits and rebates are combined, the cost of an array can drop by nearly 30%.
Federal Tax Credit
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.
This federal tax credit is 26% for systems ‘placed in service’ by the end of 2022. After 2022, the tax credit drops to 22% and then starting in January 2024 expires entirely for residential systems. (After 2024 the tax credit for commercial and utility entities will be 10%.) 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.
Find Out How Incentives Work for You
To discover how these incentives apply to your home, sign up for a free solar assessment. Getting started is simple, fill out the form below to get in touch with our Solar Support Specialists. They will gather some basic information and provide you with a full proposal with incentives, financials, and a solar layout at no cost.