2022 Missouri Solar Incentives, Tax Credits, Rebates (And More)

In this EcoWatch guide on the Missouri solar tax credit, you’ll learn:

  • Which of the 4 Missouri solar rebates you may be eligible for
  • How to finance through the PACE program
  • Which other solar incentives to take advantage of

This guide has helped thousands of homeowners overcome the barriers of entry into the solar landscape by providing the most relevant information on financing and incentives in the Show-Me state, helping them to save both time and money. Let’s get started!

Ecowatch Author Karsten Neumeister

By Karsten Neumeister, Solar Expert

Updated 5/19/2022

Why You Can Trust EcoWatch

Our solar experts have sifted through hundreds of local governments’ and utility companies’ websites to find accurate information about current solar incentives in each state. We’ve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home.

If you’re ready to speak with a qualified professional, follow the links below. Each of these companies can help you identify and apply for incentives available in Missouri.

Jump to Section:

  1. What Solar Incentives are Available in Missouri?
  2. What is the Missouri Solar Rebate?
  3. What do Missourians Need to Know About the Federal Solar Tax Credit?
  4. FAQs: Missouri Solar Incentives
Best National Provider
Badge icon

Nationwide Service

Ecowatch rating

Average cost

$$$$$

Read full review now

SunPower

  • Pros icon Most efficient panels on the market
  • Pros icon National coverage
  • Pros icon Cradle to Cradle sustainability certification
  • Pros icon Great warranty coverage
  • Con icon Expensive
  • Con icon Customer service varies by local dealer

Services Offered

  • Service icon Solar Panels
  • Service icon Solar Batteries
  • Service icon EV Chargers
  • Service icon System Monitoring
Best Solar Financing
Badge icon

Regional Service

Ecowatch rating

Average cost

$$$$$

Read full review now

Blue Raven Solar

  • Pros icon Industry-leading in-house financing
  • Pros icon Competitive pricing
  • Pros icon Excellent reputation
  • Con icon Doesn't offer solar batteries (coming 2022)

Services Offered

  • Service icon Solar Panels
  • Service icon System Monitoring
Outstanding Regional Installer
Badge icon

Regional Service

Ecowatch rating

Average cost

$$$$$

Read full review now

RisingSun Solar

  • Pros icon NABCEP-certified technicians
  • Pros icon Great warranty coverage
  • Pros icon Excellent reputation
  • Pros icon Representatives are experts on local policies
  • Con icon Relatively young company
  • Con icon Limited service area
  • Con icon No leases or PPAs

Services Offered

  • Service icon Solar Panels
  • Service icon Solar Batteries
  • Service icon Energy-Efficiency Audits

Missouri is not one of the top states for solar, but more and more residents of the Show-Me State are installing home solar panels.1

It could be because Missourians are seeking energy independence from utility companies, or perhaps they’re interested in lowering their electricity rates through net metering. Or maybe they just want to capitalize on the pros of going solar.

Whatever your reason for going solar, we want to make sure you take advantage of all Missouri solar incentives available.

Disclaimer: This article is for informational purposes only. It should not be relied on for and is not intended to provide accounting, legal or tax advice.

What Solar Incentives are Available in Missouri?

Missouri Solar Incentive Description
Federal Solar Tax Credit (ITC) The federal solar investment tax credit, or ITC, allows homeowners to claim 26% of their system costs as a credit against the federal taxes they owe. The credit is set to reduce to 22% in 2023 and will be eliminated for residential systems in 2024 unless it is extended by the federal government.2
Utility Solar Rebate Programs Columbia Water & Light, Kansas City Power & Light and Liberty Utilities all offer rebates for installing photovoltaic (PV) systems (outlined below). Be sure to check with your city government and utility provider for any additional incentives offered in your area.
Show Me PACE (Solar Financing) Property Assessed Clean Energy (PACE) financing allows property owners to cover the upfront costs of energy improvements. While it may not reduce the price of your solar system, it will provide you more time to pay it off so you can use some of the energy savings from your electricity bills.3
Net Metering Missouri lawmakers passed legislation in 2007 that requires all electric utilities to offer “true net metering” to customers with solar PV systems up to 100 kW.4 If you don’t know what net metering is, here’s our guide.
Solar Property Tax Exemption Even though installing solar panels boosts your home’s value, Missouri law ensures your property taxes won’t budge.5

What is the Missouri Solar Rebate?

Missouri does not have a statewide tax credit or rebate program, but it does have a renewable portfolio standards (RPS) goal, so its utilities want to encourage residents to go solar.6 Here’s a breakdown of different solar rebates offered:

  • Ameren Missouri Solar PV Rebate Program: If you live in or around St. Louis, you’re likely an Ameren Missouri customer. If so, you may be eligible for a solar rebate as soon as you install your solar project. The size of your rebate depends on the size of your PV system, but you can receive $0.25/watt upfront, which comes out to $2,625 in savings for the typical 10.5-kW system.7
  • Columbia Water & Light Solar Rebates: Customers of Columbia Water & Light electric company can earn a rebate of $375 to $625 per kilowatt of solar power generation for systems less than 10 kW, and a rebate between $300 and $500 for systems between 10 and 50 kW.8 You can also get a $400 rebate for installing a qualifying solar water heater.9
  • Kansas City Power & Light Solar Rebate: If you have net metering set up with KC Power & Light, you may be eligible for a rebate of $0.25 per watt of solar power installed on your home.10
  • Liberty Utilities Solar Rebate: Liberty Utilities (formerly Empire District Electric) offers the same incentive as Ameren, which we mentioned above. So, if you’re an electric customer of Liberty, you could be eligible for a rebate of up to $0.25 per watt for your solar panel installation.11 That could save you a few thousand dollars, depending on the size of your system.

Not familiar with Ameren? Take a look at this 2-minute story put together by a local St. Louis news team.

Missouri Solar Property Tax Exemption

Even though installing solar panels boosts your home’s value, your property taxes won’t budge. Missouri lawmakers made solar energy systems exempt from all property value taxes in July of 2013.12

Net Metering in Missouri

The state of Missouri passed legislation in 2007 that requires all electric utilities to offer “true net metering” to customers with solar PV systems up to 100 kW.13 If you don’t know what net metering is, here’s a quick breakdown:

When you generate electricity from your solar panels, you’re using less electricity from your utility’s grid, and are therefore seeing lower monthly electric bills. If your solar panel system produces more electricity than you need to power your home, you can “sell” the excess energy you’ve generated back to the electric grid.

Your utility company can deduct that energy amount from your monthly bill or credit it toward a future bill within the same calendar year. Under Missouri law, it’s illegal for utility companies to impose additional fees to residential customers for interconnection (connecting your solar PV system to the grid), which is a huge win for homeowners in the Show-Me State.14

Missouri Solar Financing

In July 2010, Missouri enacted the Property Assessed Clean Energy Act.15 Five years later, Show Me PACE (Property Assessed Clean Energy) financing was established under this law to help homeowners finance energy efficiency, renewable energy and water conservation improvements to their property using assessments on their property taxes.

Here’s a look into PACE financing programs available to Missouri residents:

  • Show Me PACE: The state offers access to easy-to-use financing for energy efficient power systems and upgrades through the Ygrene™ PACE financing program.16 Eligible projects include solar, HVAC, lighting, energy controls, roofing, windows and custom measures.
  • Set the PACE St. Louis: This is similar to the above program but specific to commercial and residential property owners in the city of St. Louis. Set the PACE St. Louis provides 100% upfront, fixed-rate, long-term financing to solar users for qualified energy upgrades, including energy efficiency, water efficiency and renewable energy systems.17

While these programs may not reduce the overall price of your solar system, they will reduce the upfront cost of solar panels in Missouri and give you more time to pay off your solar system. That way, you can use some of the energy savings from your electricity bills.18

What do Missourians Need to Know About the Federal Solar Tax Credit?

When you install solar panels on your Missouri home, you become eligible for the solar investment tax credit (ITC) — also known as the federal solar tax credit — which you can claim on your federal taxes. This federal tax credit is not a set dollar amount, but rather a percentage of what you spend to install your residential solar system.

The tax credit is currently set at 26% of your total system cost but is expected to decrease in 2023 and disappear completely for residential systems in 2024, so the sooner you install your solar panel system, the better your energy savings will be.

Related Topics

FAQ: Missouri Solar Incentives

As a trusted source of the solar industry, EcoWatch fields many questions from Missouri homeowners who are interested in lowering the costs of going solar. Here are some of the more common queries we see:

Blog author image

Karsten Neumeister

Solar Expert

Karsten Neumeister is a solar energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the renewable energy sector of New Orleans, focusing on solar energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.