Are there any solar incentives in Missouri?
Missouri does offer some solar incentives, but they’re a bit more limited compared to other states. On the bright side, there are still a few programs that can help lower ongoing costs or improve your overall savings with solar.
City of Columbia solar rebates
City of Columbia Utilities offers cash rebates to help lower the cost of solar based on your system size — up to about $500 per kilowatt — which can add up quickly.
You may also get extra incentives if your system performs well during peak times (like hot summer afternoons when electricity is most expensive).
What to know about net metering in Missouri
Net metering lets homeowners with solar panels offset their electricity use by sending excess power to the grid. In Missouri, it’s governed by the Net Metering and Easy Connection Act, which allows customers to earn credits for the energy their system produces.
Ameren Missouri, Evergy, Liberty Utilities and Columbia Water & Light offer net metering.
The program is available to residential, commercial, industrial and agricultural customers, with a system size limit of 100 kilowatts (kW). During each billing cycle, your solar production is first used to offset your own electricity use at the full retail rate. So, you only pay for the “net” difference.
However, if your system produces more electricity than you use, that extra power is credited at a much lower avoided cost rate (typically around 2 to 4 cents per kWh), not the retail rate. Any unused credits typically expire after 12 months, so oversizing your system can reduce your overall savings.
Solar panel costs in Missouri
Average solar panel costs in Missouri generally start between $12,683 and $25,366.
System size is a big cost factor of going solar. A typical Missouri household needs about a 10.9 kW system, which costs $27,686 on average. Depending on your energy needs, you might need a smaller or larger system.
Your total price also depends on whether you add battery storage to your system. Solar batteries cost $7,000 to $18,000, which can nearly double the total system price.
Average solar panel costs by system size in Missouri
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Statewide average | $12,683 | $15,220 | $17,756 | $20,293 | $22,830 | $25,366 |
How to pay for solar panels
Going solar is similar to buying a car: You could pay cash, but a lot of people finance or lease with minimal upfront costs. Leasing solar panels lets you install a system without high upfront costs. A solar company installs and maintains the panels on your property, and you pay a monthly fee to use them.
Local solar loan options
City of Columbia Utilities offers low-interest solar loans to help pay for solar panels if you’re a City of Columbia Utilities customer. You can borrow up to $15,000 for a home system and choose a repayment term with rates as low as 1% to 5%.
To qualify, you need to own your home, stay current on bills and taxes, and meet certain home efficiency requirements.
One important catch: if you sell or refinance your home, you’ll likely need to pay off the loan first.
PACE financing
PACE can make large energy projects easier to afford, but most homeowners aren’t eligible.
Property Assessed Clean Energy (PACE) financing helps pay for solar and energy upgrades by adding the cost to your property tax bill instead of using a traditional loan.
The Show Me Pace program is mainly for businesses and certain properties. Most homeowners only qualify if they own their home outright (no mortgage), though other financing options may be available. Similarly, Set the PACE St. Louis has paused its residential program.
Federal mortgage financing options
Energy Efficient Mortgages allow homeowners to finance energy-saving upgrades, including solar systems, as part of their mortgage, often with support from federal programs like the FHA or VA.
- FHA Energy Efficient Mortgages are available to many homebuyers. This lets you add money to your mortgage for energy upgrades. The upgrade cost must be less than the expected energy savings, and a home energy assessment is required first.
- VA Energy Efficient Mortgages are available to military members, veterans and reservists. This lets you add up to $6,000 if energy savings justify the cost.
- Conventional Energy Efficient Mortgages are offered by private lenders (not government-backed). You can borrow up to 15% of a home’s value for energy upgrades. This may help borrowers qualify by adjusting debt-to-income rules.
Compare solar companies in Missouri
Working with a solar company in Missouri can make it easier to understand available incentives and installation requirements.
| Company | Customer rating | Pro install | Max. panel efficiency | Panel warranty | Payment options | Year founded | |
|---|---|---|---|---|---|---|---|
 Project Solar | Learn More | 4.3 |  | 20.9% | 25 years | Cash, loan | 2016 |
 ION Solar | Learn More | 4.2 | | 21.9% | 30 years | Cash, loan | 2013 |
 Blue Raven Solar | Get Started | 3.5 | | Varies | 25 years | Cash, loan, lease, PPA | 2014 |
 ShopSolar | Learn More | 4.7 |  | Varies | Varies | Cash, loan | 2018 |
Find solar companies in your city
FAQ
What happened to the federal solar tax credit?
The federal solar investment tax credit previously let homeowners claim 30% of eligible installation costs. The credit is not available for property placed in service after Dec. 31, 2025, following changes made by federal legislation passed in 2025.
» EXPLORE: Solar incentives by state
Are solar panels worth it in Missouri?
Going solar is often worth it in Missouri because of long-term savings on utility bills. Over 25 years, residents with solar panels avoid $29,087 in utility costs on average.
Your current electric bill is the starting point for assessing the financial benefits of transitioning to solar energy. Your average energy consumption tells you what size solar system you need. Once you know this, you can figure out potential savings and how long it should take for your solar installation to pay for itself.
» COMPARE: Best solar companies
Is my HOA allowed to restrict solar panels?
Homeowners associations can place limited restrictions on installing solar panels in Missouri, but they generally can’t prevent you from installing a solar system.
Is my house a good candidate for solar?
It’s best to have plenty of unshaded roof space that faces south (or west) for optimal sun exposure.
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.
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 again. This can cost around $5,000 for a typical system.
We suggest using NREL’s PVWatts Calculator to estimate how much electricity your solar panel system can produce over a year.
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.
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:
- City of Columbia, “Solar Rebates.” Accessed April 20, 2026.
- City of Columbia, “Solar Loans.” Accessed April 20, 2026.
- Missouri Department of Natural Resources, “Net Metering and the Easy Connection Act - PUB2238.” Accessed April 20, 2026.
- Missouri Public Service Commission, “Net Metering.” Accessed April 20, 2026.
