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Missouri Solar Incentives, Tax Credits & Rebates (2024 Guide)

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Author Image Written by Tamara Jude + 1 other Reviewed by Roger Horowitz Updated 12/09/2024

Missouri offers a range of incentives and policies designed to make the switch to solar power more affordable. We’ll walk you through various ways to increase your energy savings in the Show-Me State, including tax credits, rebates, and performance-based incentives. You can also check out our guide to the best solar companies to find providers that will help you apply for these incentives. 

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There are some rebates and solar incentive programs available for Missouri homeowners. Here is the most recently available Missouri solar incentives

USDA REAP Grant

Missouri residents in more rural areas can use the United States Department of Agriculture’s Rural Energy for America Program (REAP). This program assists rural small businesses and agricultural producers by conducting energy audits and providing Renewable Energy Development Assistance (REDA). Applicants must submit separate applications. The maximum aggregate amount of an energy audit and REDA grant is $100,000.

More resources: DSIRE page

Property Assessed Clean Energy (PACE) Program

In certain cities and towns in Missouri, this financing program allows homeowners to pay for energy efficiency improvements or renewable energy. Repayment is handled through the annual property tax bill and can offer terms of up to 20 years at a fixed rate.


How Can You Apply For the Federal Solar Tax Credit?

The federal government provides a solar investment tax credit (ITC) to all residents who own their systems. This incentive provides a deduction on your owed federal taxes, equaling 30% of your solar panel installation costs. You apply for this credit during tax time to reduce or eliminate your owed federal taxes. The remaining amount rolls over to the next year if needed.

The federal tax credit is limited to customers who buy their systems outright or take out a loan, as ownership remains with the solar installation company for lease or power purchase agreement (PPA) customers.


Does Missouri Offer Net Metering?

Net-metering is a billing program that provides energy credits to solar energy system owners for the electricity they add to the grid. Missouri’s Net-Metering and Easy Connection Act requires all utility companies to offer net-metering and free grid interconnection to Missouri customers with a solar system under 100 kW. The law applies to all regulated electric utilities, municipal electric utilities, and rural electric cooperatives. 

The law also requires municipal utility companies and rural electric cooperatives to adopt simple contract policies for interconnection and net metering. For systems of 10 kW or less, the application must use an all-in-one document that includes an interconnection request, simple procedures, and a brief set of terms and conditions.


How Much Do Solar Panels Cost in Missouri?

The average 6-kW solar panel system costs about $17,640* before applying tax incentives or rebates. Many solar installation companies provide solar quotes based on wattage, with an average price of $3–$4 per watt. Solar panel installation in Missouri is affordable compared to the average price, with most 6-kW systems in the state costing around $17,100. Applying the federal solar tax credit saves you $5,130, for a total system cost of $11,970. 

Your solar project’s total cost and return on investment (ROI) depend on which solar financing option you choose. Below is an explanation of each payment method.

  • Cash purchase: An up-front purchase is the most cost-effective option with the best ROI. This payment method eliminates interest rates, credit checks, and loan fees. Additionally, you receive full system ownership and qualify for solar incentives.
  • Solar loan: This is the second-best payment option because you still receive system ownership and avoid paying a large sum at once. You also pay for the system monthly over a fixed period, but you’ll pay more in total due to interest rates.
  • Solar lease: A solar lease allows you to rent your system instead of buying it. This is a solid option for homeowners who don’t qualify for loans or can’t afford a large cash purchase. However, a solar lease disqualifies you from incentives and doesn’t increase your property value because you don’t own the system. 
  • Power purchase agreement (PPA): A PPA is a billing arrangement in which you only pay for your monthly energy usage. Think of it as if you’re paying your regular electricity bill. Some PPAs even come with system maintenance and repairs. However, you don’t own the system, so you’re disqualified from using solar rebates and tax incentives.

*All cost figures in this article are based on a 2023 report from EcoWatch.


Is Going Solar in Missouri Worth It?

Based on our research, solar is worth it in Missouri. The state has open skies with plenty of sunshine, quality solar rebates, and an effective net-metering program. Your system will pay for itself in an average of 9–12 years, and you can continue enjoying energy bill savings for the remainder of your system’s 25- to 30-year life span.


Our Conclusion

Missouri is missing a few key solar benefits, such as a property tax exemption, but it has plenty of other incentives to make going solar more affordable. As energy costs increase, so will your savings from a home solar system and other clean energy initiatives.

It’s important to do thorough research and consult a solar expert to understand your specific savings potential and to receive the best solar panels for your home. Use our tool below to connect with reputable solar installers that service your ZIP code.

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FAQ About Solar Tax Incentives in Missouri

How to get free solar panels in Missouri?

There is no way to get free solar panels in Missouri or any other state. If you encounter anyone claiming to provide free solar panels, this is a red flag, and you should consider a different company. 

Where not to put solar panels?

A 50-degree or more angle roof is considered too steep for a solar panel. The panel would likely be in deep shade for large portions of the day, so it can’t harness the required power.

What wears out on a solar panel?

Solar panels degrade over time because of their exposure to the elements. Heavy rainfall, snowfall, ice, and high temperatures cause hardening of the crystalline silicon, frame corrosion, and cell contamination.

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