2023 Solar Incentives Guide for Jennings, MO - Tax Credits & Rebates

What Solar Tax Credits, Incentives, and Rebates are Available in Jennings?

Source: https://www.dsireusa.org/

The term "solar incentives" refers to a wide range of financial incentives implemented to make installing and using solar panels more affordable. This is done to encourage people to switch to renewable energy. Different types of incentives, like discounts, cash back or monthly utility bill credits, may be available to you. Certain incentives may be offered by the Missouri government, by your utility company or by county or municipality, while others are federal. Types of solar incentives might include:

• Tax Credits: Tax credits decrease, dollar-for-dollar, how much income tax you owe the federal government. Tax credits differ from tax deductions.
• Net Metering: Net metering factors in once your solar panels are up and running. If you have a net metering agreement with your Jennings utility company, they will subtract the value of the excess energy your solar system produces from your utility bill each month. In some areas, this credit is dollar-for-dollar, while in others you might make back a percentage of the value.
• Rebates: Rebates, or partial refunds after a purchase, are normally applied before any solar tax credits are calculated. Rebates might be given by your local utility company, by your state or by your county.
• Tax Exemptions: These may come in the form of property tax exemptions, which would allow you to exclude the value of your solar system when paying property tax on your home. You may also qualify for an exemption on sales tax at the time of purchase.

Federal Solar Incentives

Federal incentives are the type of incentives that you are most likely to have heard of. You might have heard of the Federal Solar Investment Tax Credit, or ITC. This is a tax credit equal to a certain percentage of the money you spend installing solar panels.

The ITC applies to solar systems installed after January 1, 2006 on a primary or secondary residence that you own in the United States. Originally, the tax credit was for 30% of the total cost — for panels, labor, accessories and equipment — although that amount may range from 26-30%, depending on when your solar system was installed. There is no cap on the amount you can claim.

To find out exactly how much the ITC could save you, contact your local Jennings solar panel installation expert.

In August 2022, the Inflation Reduction Act expanded and extended the ITC, now titled the Clean Energy Credit. The Clean Energy Credit lasts until 2035. Your solar installation project undertaken between 2022 and 2032 may qualify for a 30% tax credit; the amount will then decrease slightly each year until the end of the current program. Starting in 2023, the program expansion will also make it easier to get credit for energy storage systems.

More information about the new Inflation Reduction Act can be found here. To best understand how the new Clean Energy Credit will apply to you, reach out to your local Jennings solar installation company.

State & Local Solar Incentives

There are often also state solar incentives in addition to those provided by the federal government. Tax credits, rebates and more can be offered at a more local level. Some incentives are ongoing, while others might only be available for a limited time. They might be provided by the Missouri government, or by your county or municipality.

Next Steps for Installing Solar in Jennings

There are a variety of solar incentives: those given by the federal government, those given by the Missouri government and those given by local utility companies, to name a few. Solar energy use has grown enormously in the last 15 years, thanks to these incentives. If you're prepared to make the switch to solar energy, reaching out to your local Jennings solar panel installation expert is a great first step.