2023 Solar Incentives Guide for Springfield, MO - Tax Credits & Rebates
In this guide, we'll cover the latest solar incentives and rebates available in Springfield.
You'll learn about:
- Local & State Solar Incentives
- Federal Tax Credits (Updated for 2023 and beyond)
- Ways to optimize your solar investment
Solar installers are experts in maximizing your solar tax credits and rebates.
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Updated September 15, 2023
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What Solar Tax Credits, Incentives, and Rebates are Available in Springfield?
Wabash Valley Power Association (28 Member Cooperatives) - Residential Energy Efficiency Program
Variable Speed Pool Pump: $250
Air-Source Heat Pump: $250 - $750
Geothermal Heat Pump: $1,500
Heat Pump Water Heater: $400/unit
HVAC: Varies depending on ZIP code. See program website
Empire District Electric - Solar PV Rebates
Ameren Missouri (Electric) - Residential Heating and Cooling Energy Efficiency Rebate Program
Ductless Air-Source Heat Pump: $300-$500
Dual Fuel Heat Pump: $175-$200
Ground Source Heat Pump: $800-$2,000
Central Air Conditioner: $300-$500
Electronically Commutated Motor (ECM): $50-$100
Air Conditioner/Heat Pump Tune-Up: $75
Local Option - Clean Energy Development Boards
White River Valley Electric Cooperative - Energy Efficiency Rebate Program
Electric Water Heater: $50
Heat Pump Water Heater: 50% of cost
Window AC: $50
Ground Source Heat Pump (New Installation): $750/ton
Ground Source Heat Pump (Replacement) : $150/ton
Dual Fuel Heat Pump: $150/ton
Mini-Split Heat Pump: $150/ton
Smart Thermostat: $50
Basement/Crawl Space/Slab Insulation: 50% of cost
Commercial
Heat Pump Water Heater: 50% of cost
Ground Source Heat Pump (New Installation): $750/ton
Ground Source Heat Pump (Replacement) : $150/ton
Dual Fuel Heat Pump: $150/ton
Air Source Heat Pump: $150/ton
Smart Thermostat: $50
Commercial/Industrial Variable Frequency Drive for HVAC: $50/HP
Southwest Electric Cooperative - Energy Efficiency Rebate Program
Ground-Source/Geothermal Heat Pump (Replacement Units): $200/ton
Floor insulation with installation of a geothermal heat pump: 50% of cost, up to $500
Dual Fuel Heat Pump: $150/ton
Mini Split Heat Pump: $150/ton
VFD for HVAC: $50/HP, up to 50% of total unit cost
Heat Pump Water Heater: 50% of cost, up to $500
Programmable Timer for Engine Block Heater: $15/timer, up to 50% of total unit cost
Commercial High Efficiency Motor: 50% of total cost
Windows/Room AC: $50
Energy Audit: 50% of cost, up to $500
City Utilities of Springfield - Residential Energy Efficiency Rebate Program
**Between Dec 15, 2018 and Mar 31, 2019: Insulation Upgrade: 30% of cost up to $400**
Programmable Thermostat: $15
Wi-Fi Thermostat: 50% of cost, up to $75
High Efficiency Toilet: 50% of cost, up to $75
Central A/C: $500
Natural Gas Furnace: $400
Air-Source Heat Pump: $500
Geothermal Heat Pump: $1,025
Federal Residential Renewable Energy Tax Credit
Source: https://www.dsireusa.org/
Solar incentives are designed to make renewable energy usage more affordable through financial incentives for those who install solar panels on their homes. You may be eligible for different kinds of incentives, including cash back, discounts or monthly utility bill credits, depending on your situation. Certain incentives come from your specific utility company, county or municipality, some from the state of Missouri and others from the federal government. Some solar incentives you might qualify for are:
- Tax Credits: Tax credits lower, dollar-for-dollar, how much income tax you owe the federal government. These differ from tax deductions.
- Net Metering: Net metering becomes relevant after your solar panels are up and running. If you've signed a net metering agreement with your Springfield utility company, it will subtract the value of the excess energy your solar system produces from your monthly utility bill. In some places, this credit is dollar-for-dollar, while in other areas you may receive a refund equivalent to a percentage of the value.
- Tax Exemptions: These could come in the form of property tax exemptions, which can let you exclude the value of your solar system when calculating the taxes you pay on your house. You may also qualify for an exemption on sales tax at the time of purchase.
- Rebates: A solar rebate is a partial refund given after you've purchased your solar panels. Rebates may be offered by your local utility company, your state or your county. The rebates are usually applied before calculating tax credits.
Best Solar Financing
Blue Raven Solar
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
- Doesn't offer solar batteries
Federal Solar Incentives
When people think of solar incentives, federal incentives might be the first thing that comes to mind. You may have heard of the Federal Solar Investment Tax Credit, or ITC. The ITC is a tax credit equal to a predetermined percentage of the money you spend on your solar system.
The ITC can be applied to solar systems installed after January 1, 2006 and allows you to deduct from your taxes a percentage of the total cost of solar panels, labor, accessories and equipment. You can claim this credit for solar panels installed on a primary or secondary residence that you own in the United States. The original claim amount was 30% of the total cost, although certain projects may qualify for only 26%, depending on the details. There is no maximum amount you can claim.
To more fully understand how the ITC will apply to your situation, call your local Springfield solar panel installation expert and ask for more information.
In August 2022, the Inflation Reduction Act made revisions to the ITC, now referred to as the Clean Energy Credit. The Clean Energy Credit bolsters the current credit, increasing it up to 30% for solar installations undertaken between January 1, 2022 and December 31, 2032. After 2032, the credit percentage will decrease slightly each year until the program expires in 2035. Starting in 2023, the expansion will also make credits for energy storage systems even easier to claim.
Click here to learn more about the new Inflation Reduction Act. To understand how the new Clean Energy Credit applies to you, talk to your local Springfield solar installation company.
State & Local Solar Incentives
In addition to those provided at the federal level, there are often also state solar incentives. Rebates, tax credits and more might be available at a more local level. The incentives — which may be provided by your county or municipality, or by the state of Missouri — could be offered for only a limited time, or on an ongoing basis.
Next Steps for Installing Solar in Springfield
There are a number of different solar incentives: those offered by the federal government, those offered by the Missouri government and those offered by local utility companies, to name a few. The use of solar energy has increased enormously in the last 15 years, thanks to these incentives. Getting in touch with your local Springfield solar panel installation company is the best first step towards getting all the incentives you qualify for when you switch to solar energy.
EcoWatch's Springfield, MO Solar Incentives FAQs
Can I receive any incentives when I add solar panels to a rental property, vacation home or commercial property?
While we recommend talking to your local solar installer and/or tax professional to better understand what solar incentives apply to you, many apply to a second home, as long as it is in the United States and owned by you. There may be additional incentives available for commercial properties specifically, depending on the details.
How can I find out if I qualify for certain solar incentives?
In most cases, solar incentives apply to:
- a new solar system
- installed on a property that you own
- within the U.S.
- between the dates specified by a particular incentive.
Specific incentives, including ones handled by the Missouri government or by your county/municipality, might have additional qualifications. Talk to your local Springfield solar installer to learn more about what incentives your project will qualify for.
I already have solar panels. Are there any incentives that I qualify for?
Your best bet is to talk to the company that installed your solar panels — or reach out to a local Springfield solar installer — to better understand which incentives you may qualify for. If your solar panels were installed after January 1, 2022, you likely qualify for the recently increased 30% tax credit under the Inflation Reduction Act. Solar systems installed between 2006 and 2021 may qualify for a tax credit of 26-30%.
How long until the federal solar tax credit ends?
The federal solar tax credit, previously called the ITC and now called the Clean Energy Credit, is set to end January 1, 2035. The current 30% credit will end in 2032, replaced by a 26% credit in 2033 and a 22% credit in 2034.
I want to trade in my old appliances for ones that are more energy-efficient. Are there any benefits I can claim?
The new Inflation Reduction Act creates several new financial incentives to encourage you to make eco-friendly improvements to your home. More details about these incentives, including information about incentives for purchasing new appliances, can be found here.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.
Solar incentive research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.