Missouri solar incentives, tax credits and rebates
Resources to make solar panels more affordable in 2025
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There’s no way around it: Installing solar panels is expensive. On the bright side, Missouri residents can take advantage of federal and local incentives that make it more affordable. Here’s everything you need to know about how state and federal solar incentives can make installing panels more affordable in the Show-Me State.
A typical residential solar panel system costs $10,150 to $29,000, depending on the size of your system and what financial incentives you qualify for.
Jump to insightThe federal solar investment tax credit (ITC) is the best financial incentive for most Missouri homeowners to buy solar panels.
Jump to insightMissouri residents can get the retail rate when they sell excess solar power to the local grid.
Jump to insightResidential solar panel incentives in Missouri
The federal solar investment tax credit (ITC) is the most significant financial incentive for most homeowners buying solar panels in Missouri. It reduces your federal tax liability by 30% of how much it costs to install solar panels.
The ITC drops to 26% in 2033 and 22% in 2034.
The ITC is a credit, meaning it directly decreases the amount of taxes you owe. For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If, in the year your system becomes operational, you owe $15,000 in taxes, the ITC reduces what you owe to $12,000.
Depending on where you live in Missouri, you might be eligible for the following solar incentives:
- Solar rebates: Columbia Water & Light has rebates based on the system's overall capacity, up to $250 per kW. (Liberty rebates expired in 2023.)
- Solar loans: Columbia Water & Light offers solar loans up to $15,000 for residential projects and $30,000 for commercial projects.
- PACE financing: PACE (Property Assessed Clean Energy) financing allows property owners to fund renewable energy projects through a special assessment on their property tax bill, repaid over time. PACE is available through Set the PACE St. Louis and the Missouri Energy Savings Program (MOESP).
Additional solar incentives in Missouri
Check DSIRE for the most comprehensive source on solar incentives and policies in Missouri.
| Incentive type | Amount | Eligible solar equipment | Applicable sectors | Administrator | |
|---|---|---|---|---|---|
| Columbia Water & Light ENERGY STAR Loan | Loan program | Up to $30,000 | Solar water heat, solar space heat | Residential, multifamily residential | Columbia Water & Light |
| Missouri Energy Loan Program | Loan program | Up to $1,000,000 | Solar panels, solar water heat, solar space heat, passive solar | Local government, schools, state government, institutional | Missouri Department of Natural Resources Division of Energy |
| Missouri Clean Energy District | PACE financing | Varies | Solar panels, solar thermal electric, solar thermal process heat | Commercial, industrial, local government, nonprofit, schools, state government, agricultural, institutional | Missouri Clean Energy Funding, LLC |
What to know about net metering in Missouri
Net metering lets homeowners with solar panels sell any excess electricity they generate to their local power grid. In Missouri, net metering is governed by the "Easy Connection Act," which allows residents to earn credits for excess renewable energy sent to the grid.
The program is available to residential, commercial, industrial and agricultural customers, with a system size limit of 100 kilowatts (kW). Customers receive full retail rate credits for excess generation, which can offset future electricity costs. Any unused credits at the end of a 12-month period are typically paid out at a lower avoided cost rate or carried over in limited amounts.
» BEST STATES FOR SOLAR: Missouri ranked 33rd in 2024
How much are solar panels in Missouri?
After considering the federal solar tax credit, solar panel costs in solar panel costs in Missouri typically range from $10,150 to $20,300. Leasing is often cheaper upfront, but you won’t be eligible for the federal solar tax credit and other financial incentives.
Your system size greatly affects how much you pay overall. The typical system size for solar systems in Missouri is 10.98 kW. You might need a larger or smaller system, depending on your average household energy use.
Average solar cost by system size in Missouri
| 5 kW | 6 KW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Before federal tax credit | $14,500 | $17,400 | $20,300 | $23,200 | $26,100 | $29,000 |
| After federal tax credit | $10,150 | $12,180 | $14,210 | $16,240 | $18,270 | $20,300 |
Solar resources in Missouri
Below are some additional resources that can help you go solar in Missouri.
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.
| Company | Customer rating | Professional installation | Payment options | Year founded | |
|---|---|---|---|---|---|
 | 4.6 |  | Cash, loan, lease, PPA | 2014 | Learn More |
 | 4.4 | | Cash, loan | 2013 | Learn More |
 | 4.7 | | Cash, loan | 2016 | Learn more |
 | 3.0 | | Cash, loan | 2017 | Learn more |
 | 4.7 |  | Cash, loan | 2018 | Learn more |
FAQ
Can I get free solar panels in Missouri?
There aren’t any programs in Missouri that provide free solar panels, but you can lease the equipment with little to no upfront costs. Solar leases generally require a flat monthly fee.
» FREE SOLAR PANELS: Are they really free?
How can I pay for solar panels?
You can pay cash, but most people finance solar panels with a solar loan. It works a lot like any other type of loan — there’s an application and approval process, and you pay it back over time (with interest). You also have the option of a solar lease.
» SOLAR PANELS: Lease vs. buy
How much can I save with solar panels in Missouri?
On average, Missouri homeowners with solar panels avoid $55,374 in utility costs over 25 years. Even if you don’t generate 100% of your energy needs, you can still save a lot of money compared with traditional utility bills. In Missouri, solar panels usually pay for themselves within 12 years.
» EXPLORE:Where solar savings go the furthest
Is my HOA allowed to restrict solar panels?
Homeowners associations can place limited restrictions on installing solar panels in Missouri. However, they can’t prevent you from installing a solar system.
How do I know if my house is a good candidate for solar?
It’s best to have plenty of unshaded roof space that faces south or west for optimal sun exposure. It’s also smart to upgrade any old, inefficient appliances first. Reducing your electrical loads now means you can get a smaller system, which will be cheaper.
The condition of your roof matters too — if it needs replacement soon, do that before installing solar panels. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels. This will cost around $5,000 for a 19-panel setup.
Solar photovoltaic (PV) technologies, more commonly known as solar panels, absorb sunlight and convert it into usable electricity. If you have a lot of shading around your house, they might not get enough sun to power your home.
What has Missouri’s investment in solar been so far?
Total solar investments in the state amount to $1.7 billion, according to the Solar Energy Industries Association.
Bottom line
Although there aren’t as many incentives as some other states, low-interest loans and other initiatives make going solar worthwhile for many Missouri homeowners. The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar and incentives in other states. Turns out, it’s worth it for many homeowners, particularly in Missouri.
Solar costs vs. savings: Missouri and nearby states
| 6 kW system cost (before incentives) | 10 kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Arkansas | $16,020 | $26,700 | 11.19 kW | $2.67 | $67,139 |
| Illinois | $18,420 | $30,700 | 10.12 kW | $3.07 | $48,565 |
| Iowa | $18,720 | $31,200 | 10.19 kW | $3.12 | $46,588 |
| Kansas | $18,720 | $31,200 | 10.31 kW | $3.12 | $60,286 |
| Kentucky | $16,380 | $27,300 | 11.47 kW | $2.73 | $54,204 |
| Missouri | $17,400 | $29,000 | 10.98 kW | $2.90 | $55,374 |
| Nebraska | $13,440 | $22,400 | 9.28 kW | $2.24 | $53,725 |
| Oklahoma | $14,220 | $23,700 | 11.35 kW | $2.37 | $65,916 |
| Tennessee | $19,560 | $32,600 | 12 kW | $3.26 | $51,774 |
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- DSIRE, “Missouri Programs.” Accessed March 29, 2024.
- EnergySage, “The cost of solar panels in Missouri.” Accessed March 29, 2024.
- Solar Energy Industries Association, “Missouri Solar.” Accessed March 29, 2024.
- SolarReviews, “How much do solar panels cost in Missouri, 2024?” Accessed March 29, 2024.
- Missouri Senate, “SB 820Modifies provisions relating to utilities.” Accessed Sept. 23, 2024.
- Missouri Department of Natural Resources, “Net Metering and the Easy Connection Act - PUB2238.” Accessed Sept. 23, 2024.
- Missouri Public Service Commission, “Net Metering.” Accessed Sept. 23, 2024.
