Are Solar Power Incentives available for Homeowners & Businesses?

Solar Power Incentives

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Anytime you hear about solar power, you’ll likely hear about potential solar power incentives, which are often considered some of the best reasons to get solar power sooner, rather than later. In addition to the federal incentives that are the most popular and talked-about, there are also local incentives for Missouri residents that may also apply, depending on where you live and who provides your grid power.

Residential Solar Power Incentives

Residential solar power incentives are open to all homeowners that choose to invest in solar panels, inverters, and other solar power equipment. While it can be potentially expensive to install initially, there are ways to reduce and subsidize that cost, even recoup some of it with your income tax refund.

Federal Solar Tax Credit

One of the main incentives that people think of when considering a solar power installation is the federal solar tax credit, known as the ITC, or Investment Tax Credit. It helps to reduce the overall cost of installing a solar power system by up to 26%, and with the potential cost of a solar system, recovering more than one-quarter of that cost can mean a significant sum back in your hands.

The current credit stands at 26% for 2022 but will be reduced to 22% for 2023, reduced again for 2024 down to 10%, being eliminated after that. This makes it vital that homeowners considering solar investments consider the reduction in recoverable costs after 2022.

Potential Utility Rebates

Other benefits available for residents of Missouri are provided by the various utility companies that operate in the state. Depending on where you live you may be able to qualify for one of the following solar incentives:

Ameren Missouri

Ameren offers customers a utility rebate of $0.25 per watt just for installing panels. For a modest 4kW system that’s $1,000 back in the customer’s pocket. Ameren limits the rebate to 25kW for residential and 150kW for commercial installations.

Columbia Water & Light

Customers using Columbia Water & Light can earn up to $625 per kW of power production potential, with a cap of 10kW. Those with larger systems may qualify for other rebates.

Kansas City Power & Light

Customers equipped with solar net power meters installed by KCP&L can get rebates of up to $0.25 per watt for panels installed on KCP&L-powered homes. The rates will vary depending on when you apply, so communicate with the utility to see when is the best time to apply.

Liberty Utilities

Customers of Liberty Utilities can also get a $0.25 per watt rebate from the utility for installing solar panels.

Property Tax Increase Exclusion

A little-known perk for homeowners in Missouri who install solar panels is that they become exempt from any property taxes that may result from such an installation. Since solar power can raise a home’s value by about 4%, this can be a valuable way to limit property tax increases.

Commercial Solar Power Incentives

In addition to the incentives offered by the various municipal power utilities like Ameren and KCP&L, business owners who invest in solar power can claim an accelerated depreciation schedule for their solar equipment. “Bonus depreciation” was created as part of the Tax Cuts & Jobs Act of 2017, and can provide a massive financial boon to business owners. It allows a 100% depreciation in the solar system value in the first year, which can make it similarly valuable as the ITC.

Barrett Solar Will Take Care Of The Paperwork For You

When you partner with Barrett Solar as your trusted solar professional, you won’t need to worry about which rebates and incentives you qualify for, they’ll find out which ones you qualify for, and submit all of the needed paperwork. To take advantage of these powerful solar power incentives reach out to Barrett Solar today for a free quote on getting started.

Solar panel systems are made of durable tempered glass and require little to no maintenance for the 25 to 35 years that they will generate power. In most cases, you don’t even need to clean your solar panels. You can let the rain or snow take care of that for you. If something does happen, you will have manufacturer warranties on all equipment installed by Barrett Solar.

Solar rebates and incentives vary depending on where you live. In Kansas the largest incentive available is the 26% federal investment tax credit (ITC) which allows you to deduct 26% of the cost of your solar energy system from your taxes. Certain municipalities and utilities also offer cash rebates and other incentives. If you are a business in a rural area or a farmer, the USDA offers grants as well.

Solar rebates and incentives vary depending on where you live. In Missouri the largest incentive available is the 26% federal investment tax credit (ITC) which allows you to deduct 26% of the cost of your solar energy system from your taxes. Certain municipalities and utilities also offer cash rebates and other incentives. Evergy in Missouri, Columbia power and Ameren have notable rebates available. If you are a business owner in a rural area or a farmer, the USDA offers grants as well.

Barrett Solar offers two options to finance your solar panel system. You can purchase your system in cash or take advantage of our zero down, low APR financing options. We have a lot of different options to choose from. 

Generally it takes very large hail or a major storm to damage your solar panel system. After you go solar you will want to make sure your homeowners insurance policy has enough coverage to replace any of your panels that may be damaged in a heavy storm.

The cost of a solar panel system will depend on many factors, including the size of the system, the equipment, and the financing method. A solar panel system should be viewed as a major home upgrade, and because every home is different it is never good to base an idea of what something should cost off a ballpark figure found on the internet. Barrett Solar offers completely free no obligation solar proposals, and in most cases we can give you an accurate quote with just your historical energy usage data.

Tyler Blanchard

Founder & CEO

Tyler is the CEO of Barrett Solar.

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