Missouri solar rebates and incentives: 2025 guide
The average Missouri solar shopper will save $3,782 on solar panels with rebates and incentives. But act fast—the biggest incentive expires after this year.
Updated Jul 23, 2025
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Solar panel systems in Missouri are expensive, but incentives from the state and federal governments can help you reduce the upfront cost. Between the federal tax credit and other state-specific incentives, you can save thousands on solar panels, making them well worth the investment. However, the federal solar tax credit will no longer be available for systems installed after December 31, 2025, so you have to go solar this year to claim it. Here's how you can lower the cost of solar if you live in Missouri.
As a Missouri homeowner, you have access to some great incentives that can substantially improve your return on investing in solar panels. The federal solar tax credit is one of the most impactful ways to bring down your solar costs.
| Incentive | Average savings in Missouri | Description |
|---|---|---|
Residential Clean Energy Tax Credit, formerly the federal investment tax credit (ITC) | $3,782 | Lowers your solar panel system's cost by 30%—but only for systems installed before January 1, 2026 |
City of Colombia Utilities Solar Rebate | $500/kW | Columbia residents who install a solar panel system can receive a rebate of $500 per kW. |
Residential Clean Energy Credit
The Residential Clean Energy Credit, formerly known as the federal investment tax credit (ITC), can reduce your solar panel system's cost by 30%. Your entire system qualifies for this incentive, including equipment, labor, permitting, and sales tax.
However, this credit will no longer be available after December 31, 2025. On July 4, 2025, President Trump signed legislation that eliminates the residential solar tax credit entirely starting January 1, 2026—nearly a decade ahead of its original expiration date. Solar projects typically take several months from consultation to installation, so homeowners considering solar should act quickly to lock in these savings.
The average cost for a 5 kW solar panel system is around $12,608 in Missouri. Once you factor in the 30% credit, the cost comes down to $8,826—a savings of $3,782.
When you file your federal income taxes, you can claim this incentive as a credit towards your federal tax bill. Just keep in mind that to qualify for the ITC, you need to purchase your system either with cash or a solar loan–if you lease your system, you won't be eligible.
You also need a high enough tax bill to use the credit, though you can roll over any remaining credit year-to-year, according to a tax expert EnergySage spoke with. The IRS doesn't specify an end date for credit rollovers, meaning you can theoretically roll over unused credits indefinitely based on current law. However, Tax Form 5695 may no longer exist after 2025, so you likely will no longer be able to use that form. Please speak with a tax professional for specific guidance.
How to claim the ITC in Missouri
Remember: Your system must be installed by December 31, 2025 to qualify for this credit.
If you connect your solar panel system to the grid, you can benefit from net metering, one of the best solar panel incentives available in Missouri. With net metering, you earn credits when you send excess electricity from your solar panels to the grid. When the sun isn't shining and you need to pull electricity from the grid, your utility will apply the credits to your bill. Net metering makes it so you will owe very little, or even nothing, on your electric bills with solar panels.
All utility companies in Missouri are required to offer net metering to their customers—but their rates vary. Utilities must compensate customers for their excess solar generation based on the avoided fuel cost at a minimum. Here are a few nuances to keep in mind:
The rate you receive depends on your utility. Evergy offers one-to-one net metering, while Ameren customers receive 5.39 cents per kWh in the summer and 3.92 cents per kWh in the winter.
Credits expire after 12 months. If you don’t use them within the year, you lose them.
You may have to pay for “additional equipment”. If your existing meter equipment isn’t capable of metering net energy usage, then you’re on the hook for new gear.
Learn more about these net metering programs:
Missouri doesn't offer any state-specific battery incentives. However, all batteries above 3 kWh in size are eligible for the 30% federal tax credit. In Missouri, you can also use your battery to boost your energy independence and provide backup power during an outage.
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