Is solar installation worth it for Missouri homeowners?
Missouri gets decent but not an outstanding amount of sunlight, currently at 18th place in the ranking of the sunniest states. The residential electricity rates are not half bad at 13.21 cents per kWh, just slightly higher than the national average.
So, what would make you consider investing in photovoltaic panels for your home if you live in Missouri? The answer might be Missouri solar incentives.
At present, Missouri offers some of the best solar incentives by state. Solar installation is more affordable than ever. You can enjoy electricity bill savings for years, not to mention that you’ll also be doing your part for the sake of the environment.
As a resident of the Show-Me State, you’re probably going to say, “show me.” So without further ado, here are the solar rebates and savings that Missouri has to offer.
Federal Solar Tax Credit
With the Federal tax credit or Investment Tax Credit (ITC), you can reduce the cost of your solar panel system by 26 percent. The reduction covers all costs involved in the design and installation of the array, including labor.
But, you better act fast! The federal tax credit falls to 22 percent at the end of 2022. Then starting in January 2024, residential systems won’t be eligible for the ITC anymore.
Net Metering Is One of the Missouri Solar Incentives
Missouri is one of 34 states that have mandated net metering. This means that utility companies will pay you for any surplus energy production.
However, you only get paid the “avoided cost rate” and not the full retail price for the surplus electricity. What happens is that the utility company will calculate how much it would cost them to make electricity at one of their plants. That will be the rate they’ll use for net metering.
Property Tax Exemption
One of the Missouri solar savings you can enjoy is a 100 percent property tax exemption. Even if you installed a $20,000 solar array and increased your home’s value, you’re not taxed higher for it.
Flexible Financing Options
Solar installation companies offer various affordable financing options for photovoltaic systems. While cash purchases are still one of the most common methods to pay for solar, you can also apply for a solar loan or lease.
For example, you can avail of a power purchase agreement (PPA). With a solar PPA, you agree to buy the power generated by the system instead of paying a fixed monthly lease payment. Learn more at blueravensolar.com/missouri/solar-panel-installers-kansas-city/.
Missouri Solar Rebates
Missouri residents can access a variety of solar energy rebates granted by utility companies in the area. Bear in mind that each company can set its own policies. For example, the rebate payment rates of some companies are based on the application date.
Here are some examples of electric companies that offer rebates:
- Columbia Water & Light – up to $625 per kW of capacity (but only for the first 10 kW)
- Kansas City Power & Light – up to $1 per watt (subject to application date eligibility)
- Amaren Missouri – $0.25 per watt (25 kW max)
“Show Me” the Savings!
The numerous Missouri solar incentives available make going solar an easy decision for any Missourian. But time is of the essence. Install solar panels in your home now to benefit from the solar savings and rebates that the Show-Me State has to offer.
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