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 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.
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.