Missouri Solar Incentive Programs

---

Missouri is a great location for solar systems, with 206 sunny days on average per year. While it may not be among the sunniest states, Missouri’s weather conditions still present opportunities for viable solar power projects. The state actively supports renewable energy through various incentives. Following are some of the solar incentives available to homeowners and businesses in Missouri:

Federal Incentives

Federal Investment Tax Credit (ITC)

Commercial solar energy systems can take advantage of the Federal Investment Tax Credit 48E, which provides a tax credit of 30% of the total cost of the system, provided prevailing wage and apprenticeship requirements are met. 

Residential systems can no longer claim any federal solar tax credit, as the One Big Beautiful Bill eliminated it for systems installed after January 1st, 2026. 

Commercial Depreciation

Commercial asset owners can write off 100% of a project’s value in depreciation in the first year. The One Big Beautiful Bill reinstated the 100% bonus depreciation, while simultaneously eliminating the Modified Accelerated Cost Recovery System (MACRS) that previously depreciated solar energy systems over 5 years. 

The depreciable basis of a project is reduced by half of the ITC value when combined with the 30% ITC. Here’s a quick example:

• Project cost = $800,000
• 30% credit = $240,000
• Reduced depreciation basis: $800,000 – ($240,000 / 2) = $680,000

A company’s tax rate is then taken into account to calculate the exact amount they’re able to write off. 

Missouri Property Tax Exemption:

Missouri has a property tax exemption for those who install solar systems. Any increase in property value by installing a solar system is exempt from taxes. The exemption can help make the decision to go solar easier by not impacting your tax burden.

Net Metering:

One of the best solar incentives in Missouri is net metering. Missouri passed legislation in 2007 to enable net metering to homeowners with solar systems up to 100 kW. Ameren, Columbia Water & Light, Energy and Liberty Utilities all offer net metering where you can receive rebates for your solar systems. The rebates and incentives vary between the utility companies.

Further information and programs can be found at the Programs.Dsireusa.org