Are there any solar panel incentives in Missouri?
Missouri has limited statewide solar panel incentives. However, qualifying solar equipment may be exempt from state and local sales taxes. Ask your installer whether the exemption is included in your quote.
Most major utility rebate programs have ended, but some local utilities still offer incentives.
City of Columbia solar rebates
City of Columbia Utilities offers eligible customers a rebate of $500 per kilowatt of installed solar capacity.
You may also qualify for a larger rebate if your system is expected to produce more electricity during peak-demand periods. Factors such as panel direction, angle and shading can affect the amount.
You must apply and receive approval before installation. Rebates depend on program rules and available funding.
What to know about net metering in Missouri
Missouri’s net-metering rules let eligible solar customers offset the electricity they use with power generated by their panels.
If your system produces less electricity than you use, you pay for the difference. If it produces more, the extra energy is sent to the grid and added to your bill as a credit.
Missouri electric utilities are generally required to offer net metering to eligible customers.
In most cases, excess electricity earns a lower avoided-cost rate rather than the full retail rate. Ameren Missouri, for example, currently pays 3.84 cents per kilowatt-hour in summer and 3.39 cents in winter. However, credit rates, billing rules and application requirements vary by provider.
Columbia offers more favorable credits than many other providers, so check your utility’s policy before choosing a system size. Credits generally expire after 12 months, which means an oversized system may not provide the best return.
Solar panel costs in Missouri
Average solar panel costs in Missouri range from approximately $12,683 for a 5-kW system to $25,366 for a 10-kW system.
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.
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 |
| St. Louis | $12,100 | $14,520 | $16,940 | $19,360 | $21,780 | $24,199 |
| Kansas City | $14,445 | $17,334 | $20,222 | $23,111 | $26,000 | $28,889 |
| Springfield | $11,648 | $13,978 | $16,307 | $18,637 | $20,967 | $23,296 |
How to pay for solar panels
You can pay cash, take out a solar loan, lease the system or sign a power purchase agreement.
Cash costs more upfront, but avoids interest. A loan spreads the cost over time. With a lease, you pay a monthly fee to use panels owned by the solar company. With a power purchase agreement, you pay for the electricity the system produces.
Pro tip
Always check the contract for fees, rate increases, maintenance terms and what happens if you sell your home.
» SOLAR PANELS: Lease vs. buy
Local solar loan options
City of Columbia Utilities offers low-interest solar loans to eligible customers. Homeowners can borrow up to $15,000.
As of publishing, rates are:
- 1% for terms up to three years
- 3% for four- to five-year terms
- 5% for six- to 10-year terms
You must own the home, stay current on utility bills and property taxes, meet credit and energy-efficiency requirements and get approved before installation.
The loan generally must be paid off if you sell the home or refinance. The city may approve subordination for certain refinances, such as those that lower your interest rate, shorten the loan term or finance an improvement project.
PACE financing
Property Assessed Clean Energy (PACE) lets you repay the cost of solar or other energy upgrades through an assessment tied to your property.
PACE can make large energy projects easier to afford, but most homeowners aren’t eligible.
Residential PACE availability is limited in Missouri and depends on the property location and program administrator. Confirm current eligibility directly with the applicable PACE district before applying.
PACE financing may place a lien on your home and affect a future sale or refinance, so review the rates, fees and payoff rules carefully.
Federal mortgage options for solar panels
Some federal mortgage programs let eligible borrowers include solar panels or other energy upgrades in a home purchase or refinance loan.
- FHA Energy Efficient Mortgage: Eligible borrowers may be able to finance cost-effective upgrades through an FHA-insured mortgage. A home energy assessment is required. FHA has separate rules for eligible solar and wind systems.
- VA Energy Efficient Mortgage: Eligible borrowers may be able to include approved energy upgrades in a VA-backed purchase or refinance loan. Amounts up to $3,000 generally require documented costs; amounts from $3,000 to $6,000 require evidence that expected utility savings will offset the higher payment. Larger amounts may be permitted when supported by the property’s value.
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 | 3.9 |  | 20.9% | 25 years | Cash, loan | 2020 |
 ION Solar | Learn More | 3.3 | | 21.9% | 30 years | Cash, loan | 2013 |
 Blue Raven Solar | Learn More | 3.2 | | Varies | 25 years | Cash, loan, lease, PPA | 2014 |
 ShopSolar | Learn More | 4.5 |  | Varies | Varies | Cash, loan | 2018 |
Find solar companies in your city
FAQ
Are solar panels worth it in Missouri?
Solar panels can be worth it in Missouri, particularly for homeowners with high electricity usage and a suitable, unshaded roof. 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?
A largely unshaded, south-facing roof typically provides the greatest annual production, although west-facing panels can also work well and may generate more electricity during late-afternoon peak periods.
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.
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.
What has Missouri’s investment in solar been so far?
Total solar investments in the state amount to $3.8 billion, according to the Solar Energy Industries Association.
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 July 28, 2026.
- Missouri Revisor of Statutes, "Title X TAXATION AND REVENUE." Accessed July 28, 2026.
- City of Columbia, "Solar Rebates." Accessed July 28, 2026.
- Missouri Public Utility Alliance, "Net Metering." Accessed July 28, 2026.
- Missouri Department of Natural Resources, "Net Metering and the Easy Connection Act - PUB2238." Accessed July 28, 2026.
- Missouri Public Service Commission, "Net Metering." Accessed July 28, 2026.
- City of Columbia, "Solar Loans." Accessed July 28, 2026.
- IRS, "Residential Clean Energy Credit." Accessed July 28, 2026.
- Solar Energy Industries Association, "Missouri." Accessed July 28, 2026.
