According to the Missouri Department of Resources, Missouri is the 4th best state for solar power in the United States with 200 sunny days per year. Missouri solar power incentives are piquing the interest of homeowners and businesses all across the state.
With utility power rates on the rise and residential solar cost on the decline, it is no wonder that so many Missouri homeowners and businesses are choosing to produce their own electricity with solar panel installations.
Different states have different incentives to promote green energy adaptation. If you live in Missouri and own a home or business, you should be made aware of these programs for your state and their potential savings to you. Read on to learn about these generous Missouri solar power incentives.
Missouri Solar Power Incentives
There are many factors that go into the cost of a solar panel array. Your power needs and size of the installation is one. The type of solar panels you install is another. Once you have calculated your needs and added up all the cost you may be able to deduct up to 35% off the cost of your planned system with the following Missouri solar power incentives.
Federal Investment Tax Credit
At the time of writing, Missouri residents that install solar panel systems for their home or business enjoy a 26% federal investment tax credit. On December 31, 2020, the tax credit will fall to 22% and on December 31, 2021, the federal tax credit will be further reduced indefinitely to 0% for residential and 10% for businesses.
Net Metering in Missouri
A solar system is usually connected to the grid through the meter. Excess power produced by the solar panels flows to the grid running the meter backward.
This process is net metering. Homeowners still receive a bill from their utility company. With net metering, if the location has produced more electricity than it has consumed the utility company will show an energy credit on the bill.
Many solar panel systems in Missouri have net-metering to take advantage of the Utility company as a backup if something goes wrong with their solar system. If the solar system is unable to meet periods of high demand the Grid can pick up the slack.
All Missouri utility companies are required by law to offer net metering. However, the utility company is only required to credit you with the avoided cost rate of the electricity you produce and not the retail rate they charge their customers. The avoided cost rate is considerably lower but insures the utility company doesn’t make a profit off the electricity you produce and send back to the grid.
Missouri Senate Bill 564, passed in May of 2018, was designed to promote solar power in Missouri. The bill requires all major utility companies in Missouri to give rebates of at least $0.25 per Watt installed to residents and businesses that adopt solar power. These government-mandated incentives will cease at the end of 2023.
Property Tax Exemption
In some states, property taxes will raise with the increased value of your property due to the solar panel installation, but not in Missouri. 100% of the assessed value of solar system installations not held for resale is considered property tax-exempt.
Solar Power Looks Smart
With Missouri solar power incentives, residents have a tempting choice to make. They either keep paying high electric bills every month or invest in a Missouri solar power installation.
Many of these incentives are going to expire within a couple of years so now is the time to take full advantage of the savings while you still can. Contact us at (816) 400-4474 or request a free solar quote online today.