* Cost data based on quotes for fully-installed solar panel systems submitted on our platform. Prices are shown after applying the 30% federal tax credit.
With many of the major state utility rebates set to expire in 2023 and the federal tax credit coming to an end in 2021, the best time to go solar in Missouri is now!
The state’s renewable portfolio standard is also coming to a close in 2021, meaning that the value of renewable energy credits will also start to decrease. The longer you wait to go solar in Missouri, the fewer savings you will receive in order to make solar a worthwhile investment.
The average cost for an installed residential solar system in Missouri is currently $10,857 after claiming the 30% federal solar tax credit. This is $2.59 per watt. However, there is some variance in solar prices in different parts of the state. The graph below shows the average cost of installed solar systems in your part of the state.
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Prices based on a 5.6kW system, after 30% federal tax credit
Solar panels have fallen in price by more than 80% in the last ten years. In 2022 they also remain subsidized by the 30% federal tax credit and the net metering law, making them an excellent investment. They offer a return well above the long term average return from both the share market and also property investment.
Another way to look at this question is the levelized amount you will pay for each kWh of power you will use over the next 25 years with and without solar panels. As you can see below the savings are significant.
(forecast avg Missouri electric rates over the next 25 years)
The most significant incentive to install solar panels for homes and businesses is the federal solar tax credit. At the end of 2020, the amount of the credit will decrease from 26% to 22% of the cost of the solar installation. Because home and business owners want to get the largest incentive amount possible, solar panel installation companies will likely be flooded with new projects before year’s end. In order to maximize your savings potential, the best time to go solar in Missouri is now.
Missouri utilities are required to offer net metering to their customers. When your home solar system produces more electricity than you use in a given billing period, you will receive a credit for each excess kilowatt-hour (kWh) of energy you send to the grid - these credits will be applied to your next bill.
However, Missouri only requires excess generation to be credited at the utility’s avoided cost rate, which is less than the retail rate.
While receiving credits equal to the retail rate would offer greater savings on your electric bill, getting credited at the avoided cost rate still provides some savings, which is better than none.
(After tax credit)
(After tax credit)
You will save most money by buying your solar system rather than leasing it. Read more about the pros and cons of leasing vs buying solar.
Minimum of 25 years but generally 30 or more
Solar panels power your house when they can but your home uses the utility company for power at other times. In 2023 "solar systems with battery storage" are becoming more popular. These are known as hybrid systems.
A grid-tied system is the most common type of solar system. It has no solar battery for backup power and utilizes net metering to maximize savings. Solar panels are mounted on your roof then wired together, and the power generated flows into an inverter where direct current (DC) electricity is converted into alternating current (AC) electricity. This electricity is either used by your home or is exported to the utility grid.
In hybrid solar systems, rooftop solar panels are connected to both a solar battery and the electric grid. The solar electricity generated by your panels that your home does not use is stored in the battery instead of being sent to the grid, which reduces your reliance on the utility while also providing backup power when needed. Battery storage is still expensive but you may be able to reduce costs by using state incentives.
Off-grid solar systems are not connected to the grid at all, so all of your energy needs must be met by the sun. There is no utility to fall back on. The solar installation needs to power your home not only during the day, but after dark as well, so many solar panels and a large battery system are required. These systems are often expensive and don’t make sense for homes that have access to the grid.
Read more about types of home solar systems.
No, but cleaning them can improve power generation if they are dirty.
Given this environment, and the effect of import tariffs placed on solar panels by the Trump administration during 2018, it is hard to see that solar power system prices in Missouri will fall during 2023.
Depending on the location, solar panels will generate different amounts of electricity.
A solar system that is installed on a south-facing 0-degree pitch roof Missouri will generate 588kWh of peak DC (direct current) capacity per year per 1kW in Missouri.
Enter your details into the solar panel calculator to see how your location, roof tilt, and roof direction impacts solar panel production.
The advantage of installing solar panels on your home in Missouri is that many utilities offer rebates for installing solar systems. Also, state policy mandates that utility companies must offer net metering to their customers.
The disadvantage of installing solar panels in Missouri is that net metering only has to be offered to customers at the avoided cost of electricity. This means that your utility has the ability to reimburse you for less than the retail rate of electricity for each excess kilowatt hour (kWh) of energy you send to the grid. Also, if you want to take advantage of utility rebates, you often have to give your utility provider the rights to your renewable energy credits (RECs) for 10 years.
This solar calculator requires you to input your address, utility company, your average monthly power spend - it tells you:
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Missouri solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Note: Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.