Are solar panels worth it in Missouri?

7 factors to consider before getting solar panels in Missouri

ConsumerAffairs has heard from thousands of solar customers who have already gone through the installation process, including several from Alabama. Here’s what to consider before making the switch.

1. Solar panel installation costs
2. Your energy consumption
3. Missouri solar incentives
4. Net metering buyback rates
5. How long you stay in your house
6. How you pay
7. The solar company you hire

1. Solar panel installation costs: $10,000 to $30,000

Average solar panel costs in Missouri are comparable to the national average. Before the federal solar investment tax credit (ITC), a typical residential system ranges from $14,500 to $29,000. That price drops to $10,150 to $20,300 after considering the full 30% tax credit.

Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. In Missouri, the average cost per watt $2.90.

Average solar installation cost by system size in Missouri

2. Your current energy consumption

A typical Missouri household needs a system with a capacity of 10.98 kW to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

It’s smart to get your electrical loads as low as possible before going solar. That way, you can get a smaller system, which will be cheaper overall. If you have older electrical appliances, upgrade those before investing in solar panels.

Once you know your current energy consumption, you can calculate your potential savings and the time it should take for your solar installation to pay for itself. If you also have an electric vehicle, solar panels will save you even more.

3. Missouri solar incentives: federal and state

Although there aren’t as many solar incentives in Missouri compared to some other states, appealing low-interest loans and other initiatives make going solar worthwhile for many homeowners.

The ITC is not a rebate or a refund.

Residents should also take advantage of the federal solar investment tax credit (ITC). The ITC provides a 30% tax credit on your total system costs, including equipment, labor and permits. It will drop to 26% in 2033 and 22% in 2034.

For example, let’s say you spend $10,000 going solar. The ITC would be worth $3,000. If you owe $5,000 in federal taxes the year your system becomes operational, the ITC would cut that down to $2,000.

The ITC is a nonrefundable credit, meaning you can only claim up to the amount of taxes you owe. The credit rolls over to the next tax year if you don’t use the full amount. So, if you only owed $2,000 the year you went solar, you could claim the remaining $1,000 the next taxable year.

4. Net metering in Missouri: retail buyback rate

Net metering provides Missouri homeowners with solar panels the opportunity to reduce their electricity bills and contribute to the generation of clean energy. Residents earn credits at the retail rate, meaning it’s the same value as when they get energy from the grid.

Here’s how it works: If your solar panels generate more electricity than needed, the extra energy is fed to the local grid. Your utility company then credits your account for that electricity at the retail rate. This credit will offset future electricity consumption during times when your panels don’t generate enough electricity to meet your household energy needs.

» EXPLORE: Where solar savings go the furthest

5. How long you plan to stay in your house

It takes years for electric bill savings to make up for the initial cost — about 12 years on average in Missouri. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.

Solar panels last 25 to 30 years.

A Zillow study found that, on average, houses with solar panels sell for 4.1% more. Let’s say you spend $25,000 putting solar panels on a house that costs $400,000. It might sell for $16,400 more in a few years, but you miss out on some of that $55,374 in total avoided utility costs over 25 years.

In other words, don't get solar panels just because you want to sell your house soon. Consider a home improvement project with a better return on investment, like remodeling the bathroom or kitchen, instead.

6. How you pay

It’s great if you can pay for the whole thing upfront. You own the system from day one and receive the benefits of available tax credits; plus, you don’t have to pay interest on a loan. Of course, cash isn’t always an option.

• Loan: A solar loan works like any other type of home improvement loan — there’s an application and approval process, and you pay it back over time (with interest) each month. Columbia Water & Light offers solar loans up to $15,000 for residential projects and $30,000 for commercial projects.
• Lease: Leasing solar panels is a great way to set up a system without the high upfront costs. A potential downside is that you are not eligible for the same tax incentives.
• PACE: PACE (Property Assessed Clean Energy) financing lets property owners fund energy efficiency and renewable energy improvements through a special assessment on their property tax bill, repaid over time. Set the PACE St. Louis and the Missouri Energy Savings Program (MOESP) offer PACE programs.

» SOLAR PANELS: Lease vs. buy

7. The solar company you hire

We’ve heard from several solar customers in Missouri. In the best-case scenario, it’s easy to make the switch and you’re happy with your system’s performance. In the worst-case scenario, you end up paying thousands for midtier solar equipment from a company with poor customer service and no follow-up or support.

One of the most common complaints is related to pushy sales reps who make promises that can’t be delivered. That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision. Use NREL’s PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

Monthly costs: solar payments vs. savings

Think of going solar in terms of your monthly costs. Given rising energy costs in Missouri and elsewhere, financing solar panels makes sense as long as your monthly loan payment is less than what you would be paying the utility company anyway.

Is my house a good candidate for solar panels?

Going solar ends up being worth it for many homeowners as long as their house is a good candidate to support the panel installation. Here’s what to think about before you commit:

• How much sunlight do I get? Solar panels need regular exposure to sunlight to produce the most energy possible. Missouri averages 4 to 4.5 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.
• What is the condition of my roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels again.
• What is the size and angle of my roof? Missouri (and the rest of the United States) is in the Northern Hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch.

» GREENEST STATES: Missouri ranked 46th in 2024

Pros and cons of solar panels in Missouri

Solar energy has numerous advantages, including a smaller carbon footprint and reduced energy bills. It’s also important to consider the drawbacks.

Benefits of solar panels in Missouri

• Cheaper energy bills: Going solar now means that your monthly energy expenses will be more predictable (and very often significantly lower). Solar panels also protect you from future energy cost increases.
• Better for the environment: Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.
• More energy independence: Embracing solar paves the path toward true energy independence. It especially works out for people in areas susceptible to power outages.
• Higher home resale value: Installing solar panels can significantly increase a home's value. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.

Drawbacks of solar panels in Missouri

• Solar equipment is expensive: Even with rebates and other financial incentives, the price typically starts between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000. Getting a solar battery might be strategic if net billing rates decline in Missouri. That way, you can store energy at home instead of tapping into the local grid when you need to.
• Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage.
• Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy. Snow cover may also temporarily reduce efficiency until it's removed or melts off.

» MORE: Solar energy pros and cons

Find solar companies in Missouri

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Missouri’s top solar companies to learn more.

Bottom line: Is going solar in Missouri worth it for you?

It is more expensive to go solar in Missouri than in some other states. Missouri also doesn’t offer tax incentives for solar to residents. However, we think going solar is likely worth it for Missouri homeowners looking to decrease their utility costs and increase their energy independence.

Solar costs vs. savings: Missouri and nearby states