Missouri solar rebates and incentives: 2024 guide

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. 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.

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. 

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, though you can roll over any remaining credit year-to-year until the end of 2034 when the ITC expires. The only time you might be eligible for a direct payment for the ITC is if you're a tax-exempt entity, like a nonprofit organization.

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.

If you're looking for solar installers in Missouri, here are some popular suggestions: