How to Save Money on Solar Panels in Missouri

How to Save Money on Solar Panels in Missouri

Missouri boasts excellent solar conditions, yet outdated incentives put the continued growth of solar energy in doubt. Luckily, homeowners that act quickly can still reap substantial savings on the installation of solar panels through a mix of federal, state, and utility programs. This guide provides a comprehensive overview of the current solar landscape in Missouri, outlines the incentives that make solar affordable, and equips Show-Me State residents with the insights needed to unlock savings of $25,000 or more over the lifetime of a solar system.

The Current Costs and Savings of Residential Solar in Missouri

Missouri receives abundant sunlight year-round, ranking 16th nationally in solar potential. Coupled with electricity rates that are 13% higher than the national average at over 15 cents per kWh, there’s significant savings to be captured by switching to solar power.

The average Missourian household uses about 12,000 kWh per year, racking up an annual electricity bill over $1,600. By investing in a 6 kW solar panel system sized to offset 75-90% of this usage, Missouri homeowners can slash their utility costs by $1,100 or more from year one while protecting against future rate hikes.

Over the 25+ year lifespan of a solar system, this amounts to over $25,000 in cumulative electricity savings in today’s dollars – all while increasing the value of their home. With total installed costs averaging around $15,500 before incentives for a 6 kW system, most Missouri homeowners can recoup their initial investment in solar panels in less than 10 years while reaping additional utility bill savings for 15-20 more years.

Federal Tax Credits – Up to 30% Off Your Solar Panel System

The federal solar tax credit offers homeowners across Missouri a discount of up to 30% off the total cost of purchasing and installing solar panels. There‘s no maximum limit, so the larger the system, the greater the potential savings.

For a typical 6 kW array costing around $15,500, a Missouri homeowner in 2022 would save nearly $5,000 off their final price after claiming the tax credit. To take advantage, you‘ll need to own your solar panel system rather than leasing it. The credit is scheduled to step-down starting in 2023 but remains available for new installations at 26% in 2033 and 22% in 2034 before phasing out.

Utility Rebates – Thousands Back from Your Local Energy Provider

While Missouri no longer mandates utility rebates for residential solar, leading providers like Columbia Water & Light continue to offer solar incentives that can lower costs by thousands. Depending on the size of your solar installation, rebates range from $375 to $625 per kW of capacity. For a 6 kW system, this equates to potential rebate earnings between $2,250-$3,750.

By layering the Columbia utility rebate on top of federal tax credits, a local homeowner could effectively buy their solar panel system at 40-50% off. Check with your area utility to ask about current solar rebates or incentives.

Net Metering – Getting Paid for Your Extra Solar Power

Missouri requires utility companies to offer net metering programs that allow solar panel owners to sell excess power back to the grid. While compensation rates are set at avoided costs rather than the full retail rate of electricity, net metering provides yet another avenue to maximize savings. Any power you generate but don’t use gets credited to your account as a dollar amount to offset future charges.

Consider a 6 kW system in Columbia. During sunny summer months it may produce 8,000 kWh, far outpacing a home’s usage. Through net metering, the excess power gets sold back to the utility rather than being wasted, further slashing bills during winter when solar production drops.

100% Exemption from Property Tax Increases

Local municipalities are required to exempt the value added by solar panels from increased property taxes. Without this protection, higher assessed home values resulting from an investment in solar could cancel out much of the utility savings in the form of higher property tax bills. The exemption lasts for as long as the solar panels remain installed and operational.

Expiring Incentives – Act Quickly to Maximize Solar Savings

Solar panels can save Missouri homeowners thousands in utility bills each year while increasing property values. But with the state renewable portfolio standard already achieved, important incentives and regulations supporting solar adoption already show signs of stalling out.

Utilities are dropping rebate programs or dramatically cutting rates. Net metering laws lack the same protections provided in many other states. And without action from lawmakers, more supportive policies could soon begin to expire as well.

To maximize savings under the most favorable solar policies, Missouri homeowners should take proactive steps toward installation in the coming year. Locking in strong federal tax credits combined with any remaining utility or state-based incentives will guarantee robust returns on investment over the decades-long usable life of a solar panel system.

Additional Resources on Missouri Solar

With the right guidance, Missouri homeowners can navigate the shifting landscape of incentives and unlock substantial long-term savings by going solar. For additional perspectives and insights check out the articles below:

By leveraging federal tax credits before they step down coupled with any remaining utility solar incentives, Missouri homeowners can maximize savings with solar panel installations. Take control over your energy costs while increasing the value of your home by going solar today.