If you live in Missouri and you’ve ever wondered about installing solar panels, it can be hard to know how to get started. Missouri doesn’t exactly have a reputation for being at the forefront of the solar energy movement. You may also wonder whether there are any specific Missouri solar incentives, rebates, or tax credits available to you.
At KC Solar, we’re experts in the local solar field and know how to help you take advantage of the solar options for Missouri residents. Keep reading to learn about Missouri solar incentives and more.
Federal Solar Tax Credit: Available to All U.S. Residents
The federal Investment Tax Credit (ITC), which is available to all solar customers in the United States, is a way for homeowners and businesses to save on the costs of residential and commercial solar.
This federal credit was originally established through the Energy Policy Act of 2005 and was initially intended to last through the end of 2007. However, Congress has extended it multiple times since then.
So, here we are in 2022 — almost 2023 — still encouraging homeowners to take advantage of the ITC. That’s because, through the end of 2022, you’ll receive a tax credit of 26% of the cost of your solar panel system.
If you don’t install your system before the end of this year, you’re still eligible for the tax credit. But unfortunately, for 2023, the value of the tax credit will drop down to 22%, a 4% decrease in what you can save.
What about after 2023? As of now, in 2024 and beyond, only commercial solar will be eligible for a 10% credit. And residential systems will no longer qualify.
So, how does the tax credit work? Let’s say your solar system costs $10,000. If you install solar this year, you would pay $2,600 less in taxes this year thanks to the tax credit. If you wait until next year, that amount goes down to $2,200 saved. It all depends on the size of the system you install. The tax credit could make a huge difference in saving money.
That means time is of the essence! If you’re in Missouri and want to install a solar panel system for your home, it’s time to get started so you can maximize your savings to the fullest extent.
Missouri Solar Panels Tax Rebate: Senate Bill 564
Apart from the federal ITC, Missouri’s financial incentives for going solar are somewhat limited compared to what’s available in other states — like New York, Rhode Island, or even Iowa. But there are still a couple of benefits specifically for Missouri solar customers.
With Missouri’s Senate Bill 564, passed in 2018, solar rebates are mandated for solar systems that become operational through December 31, 2023. The rebate applies to new or expanded solar electric systems. It is limited to up to 25kW per system for residential solar customers.
In addition, a 25-cent per watt ($0.25/W) rebate is available for solar systems that became operational after June 30, 2019 and new systems that are installed through December 31, 2023.
These rebates are typically offered by your utility company, so it will likely vary depending on where in the state you live. For example, in our hometown of Kansas City, solar panel customers will receive their rebate through Evergy.
(Note: This is different from the Evergy Solar Program subscription service, which we at KC Solar don’t agree is the best choice for solar customers. Learn why.)
Prospective solar panel customers in other parts of Missouri, such as Columbia, will find their rebate offered by Columbia Water & Light. According to EnergySage:
“Any solar homeowner who is a customer of Columbia Water & Light can get a payment of up to $625 per kilowatt (kW) of solar power generation capacity (up to 10kW). Additional rebates are available for larger system sizes as well.”
If you’re interested in learning more about solar rebates, you can visit the Missouri Division of Energy and find specific information from your utility company.
Other Benefits of Going Solar in Missouri
On top of the federal rebate and tax credit offered by your utility company, there are a few other benefits of going solar in Missouri.
For example, all solar homeowners in Missouri are exempt from property tax increases that result from installing solar panels on their home. This includes residential solar arrays, with homeowners able to claim the exemption each year, indefinitely.
This is a major benefit, as it’s widely known that having a home solar system can substantially increase your home’s value. Which means that, if you someday decide to sell your home, you can cash in on the solar panels’ values even though you haven’t had to pay more in property taxes over the years.
Another benefit of going solar in Missouri: KC Solar is committed to working with each and every one of our customers. At KC Solar, we offer $0 down solar loans. If you can qualify for a loan — and we have several options, even for low credit scores — then you don’t need to have the money today. We’re happy to work with you and get your solar system up and running.
Going Solar in Missouri or Kansas? Let’s Talk
If you are looking for the best solar company in Kansas City, look no further than KC Solar. We’re here to answer all your questions about Missouri solar incentives, federal tax credits, and more. Allow us to be your local Kansas City solar panel installation experts.
Once you schedule a no-pressure site visit, our experts will help you understand what solar system specifications would be best for your home or business. We can also help you understand all your options, including the Evergy Solar Program, and our financing options, including $0 down loans.
KC Solar is the only local solar company in Kansas City with KC natives who own and operate the daily activities of the business. We are your Kansas City Solar Panel experts. And solar panel installation in Kansas City is our passion.
And be sure to download our Free Solar Panel Buying Guide for more information.