Solar Panel Laws in Missouri

The state of Missouri receives a decent amount of sunlight over the year. The Show-Me state ranks in the top half of all US states for average peak sun hours. This presents an excellent opportunity to receive massive savings by going solar.

Other than the natural potential of sunny days, Missouri has great financial attractiveness related to solar power. There are various rebates and incentives to encourage homeowners to go solar and utilize the sun’s potential.

Using solar to generate electricity is free, and it is clean. Coal power plants burn fossil fuels to produce energy, releasing carbon into the atmosphere. Increasing carbon levels have led to global warming, a climate disaster being experienced worldwide.

Solar PV powering up your house is equivalent to planting 100 trees. When you switch to solar, you contribute to saving the environment and financially. An average household can be supported using a 5kW solar PV system. The average price of a solar PV system in Missouri is $19,000.

The payback period for a solar panel in Missouri is 13 years. This figure is calculated by dividing the amount used to acquire the asset and the savings one gets after paying for electricity to the utility providers.

The benefit of switching is that it starts generating electricity after your solar panels are installed in Missouri. You can save up to $750 in the first year alone. These are average figures because every home has different dynamics, and some factors limit the efficiency of a solar panel.

The solar energy incentives and rebates have made Missouri gain recognition for championing the use of renewable energy. It has formulated policies that have made solar panels cheap and readily available.

Going solar is an easy decision in this state. Here are the various solar panel laws in Missouri.

Key Takeaways

• Missouri has favorable solar panel laws, with ample sunlight and financial incentives, making it an excellent opportunity for homeowners to go solar.
• Missouri’s Renewable Portfolio Standard (RPS) requires utilities to source at least 25% of their energy from renewables, including 0.3% from solar, encouraging residential solar adoption.
• Homeowners in Missouri can benefit from a federal tax credit, robust net metering policies, and property tax exemptions, making solar power an attractive and financially advantageous option.

Missouri Renewable Portfolio Standard

A Renewable Portfolio Standard (RPS) is a policy that requires utilities to achieve a certain percentage of energy production using renewable means.

Missouri RPS requires all utilities to get at least 25% of their energy from renewable sources. 0.3% of it should be generated using solar means.

If a utility doesn’t reach this goal, it is fined heavily. This is great for the homeowner as residential solar power counts towards their targets. This means utilities are actively helping homeowners acquire solar PV systems so that they can be able to meet the targets required by law.

It is also cheaper to give homeowners incentives than to invest in whole solar systems.

Federal Tax Credit

The federal government offers a tax credit to anyone acquiring a solar PV system. Otherwise known as the Investment Tax Credit (ITC), you can deduct 30% of the Solar PV system cost from the taxes you owe the government.

This means that you can deduct 30% of the cost of your solar system from your taxes. For a solar system costing around $16,500 after rebates, you get a tax credit of $4,950. You can deduct the whole amount from the taxes due for one year. You can split the amount into other years if you don’t pay enough taxes.

This tax credit applies to homeowners buying a solar system in one go, either by cash or a solar loan. For maximum savings, you should buy the entire system in cash. If you are strapped for cash, you can apply for a loan and use the 30% cut to pay for your first installments.

Net Metering In Missouri

Missouri has a very robust net metering system policy. Utilities must monitor your energy production and consumption and refund you for any surplus.

Net metering is a system that allows homeowners who have invested in solar PV systems to connect to the grid and use the grid as a battery.

When solar power produces more energy than your household needs, the grid will adapt extra power to serve another load elsewhere. When you give power to the grid, you earn solar credits that can be used to offset your electricity bill.

When your solar panel is not producing enough power, i.e., during the winter period, you can use power from the grid to power your house. The credits will be netted off your bill. The solar credits are rolled off to subsequent months if unused.

The only drawback in Missouri is that you are not compensated at full retail price for the electricity you generate. Utilities pay according to how much they would have cost to produce the same energy at their coal plants.

Utilities can’t impose insurance requirements on solar PVs rated 10 kW and below. An external disconnect switch may be needed for some instances.

Missouri Tax Exemptions

Solar PV systems are exempted from property taxes in Missouri. When you install a solar power system, your house’s value increases; a solar system can increase $15,000 worth of value to your home.

Property taxes are paid according to the house’s value. Hence, when the value increases, the taxes also increase. The state requires that solar power be exempt from being included in property taxes.

Case Study: Residential Solar Installation in Missouri

Background

Springfield, located in the heart of Missouri, experiences a favorable climate for solar energy with ample sunshine throughout the year. This case study highlights the installation of a 5 kW solar PV system for a residential property in Springfield, focusing on the practical benefits and the process of leveraging state and federal incentives.

Project Overview

Our team at Solar Panels Network USA undertook a project to install a solar PV system for a homeowner in Springfield. The homeowner was motivated by the potential for substantial energy savings and the environmental benefits associated with solar power.

Case Study: Residential Solar Installation in Missouri

Background

Springfield, located in the heart of Missouri, experiences a favorable climate for solar energy with ample sunshine throughout the year. This case study highlights the installation of a 5 kW solar PV system for a residential property in Springfield, focusing on the practical benefits and the process of leveraging state and federal incentives.

Implementation

Initial Assessment: We conducted a thorough site evaluation to determine the optimal placement of the solar panels, considering factors such as roof orientation, shading, and structural integrity. Springfield’s abundant sunlight made it an ideal location for solar energy production.

System Design: The system was custom-designed to match the household’s energy consumption patterns, ensuring maximum efficiency and return on investment. We incorporated high-efficiency solar panels and a state-of-the-art inverter to optimize energy conversion.

Installation: Our experienced technicians performed the installation with precision, adhering to all safety and regulatory standards. The system was mounted securely to withstand Springfield’s weather conditions, including occasional storms.

Grid Connection: Leveraging Missouri’s robust net metering policy, we facilitated a seamless connection to the local utility grid. This allows the homeowner to earn solar credits for excess energy produced, which can be used to offset future electricity bills.

Results

Energy Production: The installed system capitalized on Springfield’s sunny days, producing approximately 25% more electricity compared to states with less sunlight. This efficiency translated into significant savings, with the homeowner saving an estimated $750 in the first year alone.

Financial Benefits: The homeowner reduced the upfront cost by 30% by utilizing the federal Solar Tax Credit (ITC). Additionally, the state’s Renewable Portfolio Standard (RPS) incentivized the installation by making it easier for utilities to offer rebates and incentives.

Environmental Impact: The solar PV system significantly reduced the household’s carbon footprint, equivalent to planting approximately 100 trees. This transition to renewable energy contributed to Springfield’s sustainability efforts and set a positive example for the community.

Summary

This residential solar installation in Springfield, Missouri, exemplifies the potential for solar energy in the state. Through strategic use of available incentives and rebates, combined with Springfield’s natural advantages, we demonstrated that solar power is a viable and beneficial option for homeowners. Our approach ensured a seamless integration of solar technology into the homeowner’s energy ecosystem, highlighting the importance of a well-structured project to maximize financial benefits and environmental impact.

Expert Insights From Our Solar Panel Installers About Solar Panel Laws in Missouri

Missouri’s Renewable Portfolio Standard is a game-changer for homeowners. By requiring utilities to source a significant percentage of their energy from renewables, including solar, it creates a strong incentive for individuals to adopt solar power. This policy directly benefits homeowners who install solar PV systems by helping utilities meet their targets.

Senior Solar Installer

The federal tax credit, or ITC, is one of the most substantial financial benefits for Missouri residents considering solar. By allowing a 30% deduction on the total system cost, this incentive significantly lowers the upfront investment and makes solar power an economically viable option for many.

Lead Solar Technician

Missouri’s robust net metering policy is highly advantageous. It not only allows homeowners to offset their electricity bills with solar credits but also provides a way to connect seamlessly to the grid. This makes solar energy a reliable and efficient choice for long-term savings.

Solar Energy Consultant

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Map image by Wikimedia Commons User: TUBS / CC-BY-SA-3.0