Missouri Solar Rebates and Incentives

How Much Can You Save on Solar in Missouri?

• The Federal Solar Tax Credit in Missouri reduces the cost of solar installation by up to 30 percent.
• Missouri’s Net Energy Metering Program enables customers of investor-owned electric utility companies to receive energy credits for sending excess solar power.
• Ameren Missouri’s Solar PV Rebate Program offers $250 for every kWh of solar power installed.
• Columbia Water & Light’s Solar Rebate Program rewards customers for increasing energy efficiency with cash incentives, while Kansas City Power & Light’s Solar Rebate Program provides customers with $0.25 per watt of installed solar power.

Missouri Energy Profile

Missouri receives an average of 2,690 hours of sunlight annually. The Show-Me state has a thriving solar industry due to the large number of industrial and small-scale solar installations.

According to the SEIA Report, as of 2021, the state has up to 472 megawatts of solar installations, enough to power over 48,028 homes in Missouri.

Homes in Missouri may receive power from small-scale residential solar panels or from industrial solar farms. Some of the top solar farms in Missouri include:

• Truman Solar (generates 14 MW of solar energy and has the potential to power 1,628 homes)
• IKEA's commercial solar facility (generates 1.2 MW of solar energy)
• Nixa Solar (generates 11.2 MW and has enough capacity to power 1,302 homes)

Missouri Solar Tax and Incentives at a Glance

How Affordable is Solar Energy in Missouri?

The retail cost of grid electricity in Missouri is 9.85 cents per kilowatt-hour. In comparison, it costs an average of $2.7 per watt to install a solar panel.

However, the installation cost will greatly reduce when the user applies for various renewable energy incentives in Missouri. Applying the federal solar tax credit will drive down the cost to $1.89 per watt.

Thanks to the above-average sunlight hours, a 6 kWh panel in Missouri can generate between 8,000 and 10,000 kWh annually. For this reason, solar companies in Missouri will often recommend a 6 kWh solar panel for an average-sized household.

As of 2023, it will cost $16,200 to install a 6 KWh solar panel in Missouri. Keep in mind that this figure may fluctuate due to factors like the solar installer's cost, the type of solar panels, and the mount type.

Irrespective of the cost, solar users can utilize incentives like the Federal Solar Tax Credit to lower the price. This incentive will refund 30 percent of the cost of solar installation. So, you get to save $4,860 via this scheme. In addition, you can further reduce the cost through local rebates in Missouri.

Federal Solar Tax Credit in Missouri

The federal solar tax credit, or the solar investment tax credit, is an incentive for users of renewable energy. Those eligible for this incentive will receive a discount off the cost of solar installation in the form of tax credits when they file their annual income tax.

This renewable energy rebate first came into existence via the Energy Policy Act of 2005. Then, the US Congress revived it through the Inflation Reduction Act (IRA) in 2022.

The act created a new set of rate schedules for each phase of the program.

• Solar users will receive a 30 percent tax credit for solar panels installed between 2022 and 2032.
• The rate will fall to 26 percent if the system is installed in 2034. Furthermore, those who will install their PV system in 2035 are only eligible for a 22 percent tax credit.
• There is no tax credit for solar panels installed in 2036 and beyond.

So, what expenses will the solar tax credit cover in Missouri

The Missouri solar panel tax credit will cover all solar equipment under these categories:

• Solar panel and cells
• Labor costs, including the cost of onsite inspection, assembly of the solar system, and installation.
• Solar wiring, inverters, and other accessories, including structures for mounting the PV system.
• Solar batteries that have a storage capacity higher than 3 kWh.

Eligibility

Missouri residents can claim the federal solar tax credit if they meet these criteria:

• You must install the PV system at a primary or secondary residence in the US.
• The system must be installed while the tax credit program is still in effect.
• You must fully own the PV system. It does not matter if you paid in full or used other financing options. You're also eligible if you are a shareholder in a community-owned solar project.
• The system must be new and installed for the first time.

How do I claim the Federal Solar Tax Credit in Missouri?

Missouri residents can claim the federal solar tax credit by following these steps.

Step 1: Start by gathering the necessary documents. This includes downloading IRS Form 1040, Form 5695, and invoices from solar manufacturers and installers. The Form 5695 is for claiming tax credits for installing solar equipment.

Step 2: Complete IRS Form 5695. Fill out the total expenses for solar installation in line 1 of IRS Form 5695. Also, you can claim tax credits for other renewable energy sources by filling out lines 2 to 5.

Step 3: Determine your annual tax on Form 1040. Fill out sections 1 to 18 to determine your tax liability. This step will help you know how much renewable energy tax credit you can access in a tax year.

Subtract your tax credit from the tax liability. If the credit exceeds your tax liability, you must rollover the excess credit to the next year.

Note: The Missouri tax credit for solar panels can be rolled over for five years.

Step $: Add the tax credit you're eligible to receive in line 5 of Schedule 3 on Form 1040.

You may file completed tax documents either through a third-party tax company like Intuit or TurboTax. On the other hand, you can file your taxes using a tax preparer who is also an Electronic Return Originator. Search online for the nearest ERO tax preparer in your region.

You may also send the documents via mail to:

Department of the Treasury

Internal Revenue Service

Kansas City, MO 64999-0002

Net Energy Metering in Missouri

Net metering is a solar incentive in which renewable energy users receive credits for generating excess electricity. In this program, an electric utility company buys the excess electricity and pays the user in the form of energy credits.

These credits are stored in a net meter installed on the user's property. That said, the user may use the stored credits to pay for electricity when their renewable energy output is low. Solar energy output is low at night and during the winter season. Cloudy weather conditions can also reduce solar energy output.

Net metering is one of the oldest renewable energy incentives in Missouri. It came into existence through Section 386.890 of the RSMo or Easy Connection Act of 2007. This law enables users of renewable energy to get incentives for sending their excess power to utility companies.

So, how can I qualify for net metering in Missouri?

You must fulfill these requirements to qualify for net metering in the state.

• The renewable energy system must have a capacity of less than 100 kWh.
• The renewable energy user must be a paying customer of an investor-owned electric utility company.
• Must sign an interconnection agreement with the electric utility company.
• The renewable energy system was installed according to Article 690 of the National Electric Code.
• The system must be approved by both the Institute of Electrical and Electronic Engineers and the Underwriters Laboratory.

How to Enroll for Net Energy metering in Missouri

In Missouri, each electric utility company has a specific guideline for net metering enrollment. For instance, Intercounty Electric Cooperative's customers must follow these steps to enroll in net metering.

Step 1: Download and fill out sections A, B, C, D, F, and G of the Interconnection Agreement Form.

Step 2: Attach these documents to the form:

• The renewable energy system's wiring diagram
• The construction plan for the system.

Step 3: Send these documents to the utility company via mail at:

Intercounty Electric Cooperative
P.O. Box 209 102

Maple Avenue
Licking, MO 65542
Phone: (573) 674-2211.

Step 4: The company will send an approval or denial within 30 days for PV systems rated at less than 10 kWh. However, it will take 90 days to get feedback if the system has a capacity above 10 kWh.

Step 5: Once approved, you must construct the solar system according to the rules on the agreement form.

Step 6: Next, fill out Section H of the Agreement Form and resend it to the company.

After receiving the application, Intercounty Cooperative will connect your renewable energy system to the grid within 15 business days.

Missouri Property Tax Exemption

As of March 2023, there are no local property tax exemptions for residential solar owners in Missouri. However, commercial solar owners are eligible for this incentive under Missouri Senate Bill SB 881. The bill allows companies to avoid paying property tax on installed solar systems.

However, residential solar owners are eligible for numerous renewable energy incentives in Missouri. These incentives help reduce the financial burden of an increased property tax.

For example, you can use the PACE financing option as an alternative. It offers low fixed-interest loans and reduces the upfront cost of solar installation.

Missouri Property-Assessed Clean Energy (PACE) Financing

The Property-Assessed Clean Energy Financing is a loan option for renewable energy users. Under this scheme, residents will receive loans to finance their renewable energy system projects. Furthermore, the program will calculate the repayment plan and add it to the property tax.

The PACE financing program is beneficial to Missouri residents for these reasons:

• It does not prevent beneficiaries from claiming other solar energy incentives in Missouri.
• It has a low fixed interest rate.
• It does not affect the credit score, and beneficiaries are exempt from repaying the loan for the first 17 months.
• It helps underprivileged communities finance renewable energy installations.

How to claim a PACE financing option in Missouri

Step 1: Check if you're eligible to apply for the program. Visit the Missouri Clean Energy District website to view the eligibility requirements. \

Step 2: Fill out the PACE application for any of the state's PACE programs. Show Me the PACE and Set the PACE are examples of these programs. \

Step 3: Follow the application guidelines and choose an approved solar installation company.

You can sign up for the PACE program with these solar companies.

• Blue Raven Solar
• Astra Watt Solar
• SunPower
• Zenernet Solar
• ADT Solar
• Sun Solar

Missouri Local Tax Incentives and Rebates

Ameren Missouri's Solar PV Rebate Program

Ameren Missouri's Solar PV Rebate Program offers incentives to solar users who are also customers of the electric company.

To access this offer, interested parties must create an account and fill out an online application form on the Ameren website. Furthermore, you must provide these details during sign-up:

• Name and contact details (residential address, email, and phone number)
• Account number
• A completed W9 Form (must be uploaded)
• Solar panel number and DC rating
• Name and contact details of the solar installer.

Beneficiaries will receive $250 for every kWh of solar power installed. This offer is valid from June 1, 2019 to December 31, 2023.

Columbia Water & Light solar rebate

This program offers cash incentives to entities that increase their energy efficiency by 30 percent. Only commercial or industrial customers of Columbia Water and Light can access this incentive.

These entities will receive $300 for every kilowatt saved by increasing energy efficiency. Nevertheless, the program will only reward you for saving a maximum of 75 kWh, or a maximum of $22,500. Also, the Missouri energy rebate program only pays for half the cost of installing the energy-efficient system.

To qualify for the program, the project must be one of the following:

• Industrial, multi-household, or commercial buildings.
• A manufacturing company's renovation of existing equipment to a more energy-efficient option.

Furthermore, the project must be completed within one year.

To apply for the rebate, customers must send an application to Columbia Water & Light’s Utility Services. Also, add these documents when sending an application.

• A document showing electric bills for the last 12 months.
• Itemized cost of the project.
• A description of the facility and operation hours.
• A calculation of the energy saved during the project.

Kansas City Power & Light Solar rebate

Under this Missouri renewable energy rebate program, you'll receive $0.25 for every watt of solar power installed in your home. Only customers of Kansas City Power and Light can access this offer. To qualify, the PV system must be new and installed on the customer's property.

Liberty Utilities solar rebate

Liberty Utilities is a first-come, first-serve solar incentive. It offers $0.25 per watt for solar systems installed between July 1, 2019, and December 31, 2023. To qualify and access this rebate, you must fulfill these criteria:

• Be an active customer of Liberty Utilities.
• Must apply for net metering.
• The PV system is permanently installed on the property.
• The PV system is new and comes with a minimum of 10 years manufacturer warranty.

State Sales Tax Exemptions in Missouri

Missouri does not offer a sales tax exemption for solar equipment. According to the Missouri Department of Revenue, residents must pay a 4.225% sales tax on any solar equipment purchase. That said, you may add the sales tax as expenses when filing for a federal solar tax credit.

What are the major renewable resources in Missouri?

Wind, solar, hydropower, and biomass are the major renewable energy sources in the state. Wind energy accounts for 70 percent of the state's renewable energy production. As of January 2022, Missouri had installed over 2,000 megawatts of wind energy-producing facilities. In addition, the state is currently developing a 53-megawatt facility to increase the current power capacity.

Missouri is home to five industrial-scale hydroelectric power plants and three pump-storage hydroelectric plants. The state switches to the pump-storage plants when there's a higher demand for electricity. As of 2022, the state's hydroelectric facilities had the capacity to produce up to 500 MW. Besides hydroelectric facilities, Missouri also generates power from solar energy.

About six percent of all the renewable energy in Missouri comes from utility-scale and small-scale solar installations. Furthermore, 75 percent of solar energy production comes from customer-sited solar installations.

Note: small-scale solar installations often have a power generating capacity of less than 25 kWh.

Biomass is also another renewable energy source in Missouri. In fact, the state has the third-largest biodiesel production capacity in the US. It produces over 253 million gallons of biodiesel annually. Livestock manure, wood pellets, and ethanol are also generated to power biomass facilities in the state.

Note: Missouri residents do not have an obligation to purchase 100 percent of their electricity from renewable energy sources. However, investor-owned electric utilities must purchase 15 percent of their electricity from renewable energy-producing facilities. These facilities may include solar systems, wind turbines, and hydroelectric power plants.

The U.S. Department of Energy's 2021 report revealed that Missouri generated 91.8 terawatt-hours of energy. The state's total output is about 2 percent of the total energy generated in the US.

Missouri generates electricity from both renewable and non-renewable energy sources. As of 2021, 89 percent of its energy output came from non-renewable energy sources like coal, nuclear energy, and natural gas. The remaining 12 percent of the state's energy output comes from renewable energy sources.

The state's power plants burn bituminous coal to meet 74% of the energy demand. Natural gas and nuclear energy account for nine and six percent of the state's energy output, respectively.

Missouri Household Profile

According to the EIA report for 2020, Missouri consumed a total of 276.6 million BTUs of energy per capita. The report provided information on the energy consumption in these sectors:

• Residential sector: 82.3 million BTUs
• Transportation sector: 83.1 million BTUs.
• Industrial sector: 49.5 million BTUs
• Commercial sector: 61.6 million BTUs