Missouri Solar Power Rebates, Tax Credits, and Incentives

st louis arch solar missouri Missouri Solar Power Rebates, Tax Credits, and Incentives

Solar Legislator Score:  Missouri Solar Power Rebates, Tax Credits, and Incentives

From the Gateway Arch to Branson, with stops along the way in the Ozarks, Missouri has tons of stuff going on. Don’t forget about the Kansas City Jazz scene either. With all sorts of happenings in the Show Me state, what better way to take care of Missouri than by using renewable energy. Clean solar power is also a great way to keep the state’s important waterways sparkling too. Keep reading to see what the legislature has done with solar energy.

STATE LEGISLATION

Missouri’s Senate Bill 54, passed in June, 2007 is an overhaul of the state’s renewable energy policy. Part of that bill, called the Green Power Initiative, set up a Renewable Energy Standard requiring 11% of the state’s energy needs to be produced from renewable sources by 2020. It is up to the Public Service Commission to decide what renewable energy sources are most important though, so stay tuned.

The state does need to review its priorities though. Missouri offers a $5.00/ton tax credit for burning wood residue from the forestry industry in the state. Maybe we should think about keeping those trees planted in the ground, so that they can reduce the CO2 in the atmosphere, rather than burning them to put more greenhouse gas up there.

NET-METERING

Missouri is a newcomer to net-metering. The governor just signed the authorization in 2007 (also part of Senate Bill 54), and it goes into effect on January 1, 2008. Your clean power system of 100kW or smaller is eligible for net-metering under this plan. The plan also calls for allowing up to 5% of the utility’s peak capacity to qualify for net-metering. Customers get a credit on their next month’s power bill for any excess power generated. That credit can carry over during the annual billing cycle. However, after a year, you get to donate excess credits to the power company. Therefore, it’s extremely important to size your system appropriately so you aren’t giving free energy away.

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES

Missouri does have a nice Energy Loan Program through which schools and local governments can get very low interest loans to purchase solar power equipment.
If you are a Columbia Water & Light customer, you can take advantage of their Super Saver Loan program to put in a solar water heater or a solar space heating system. This program will give you a low interest 5-year loan to use the power of the sun to heat your house or water supply.

Columbia Water & Light will also give you a $500/kW rebate for installing a solar electricity system. This applies to any solar system from 250 watts to 10kW. Since an average size system is about 3kW, you’d receive a rebate of $1,500 from them. It’s something, but really, compared to incentives offered in other states for solar energy installation, this is not really that impressive.
Here are the details on rebates and loans for solar power in Missouri:

State Loan Program

* Energy Loan Program
Utility Loan Program

* Columbia Water & Light – Super Saver Loans

Utility Rebate Program

* Columbia Water & Light – Solar & Efficiency Rebates

EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST

You live in Kansas City and want to take advantage of Missouri’s Great solar rating? Installing a typical 3kW home solar electricity system will cost about $27,000. This system is eligible for a federal tax credit of $2,000, however it must be installed by December 31st because congress couldn’t get their act together to renew it. Also keep in mind that you can take out a low interest loan through the state’s Energy Loan Program to help pay for your system. If you use 1,300 kWh each month, and are set up with Kansas City Power & Light who charges $0.0803/kWh, your system will pay for itself in less than 20 years. During that time, you’ll be saving over $900 each year on your utility bills, and keeping a whopping 160 tons of greenhouse gasses out of the atmosphere. Check out these other important details about your system:

  • 600 square feet of roof area required
  • Estimated property value increase of $10,820
  • $22,701 estimated utility bill savings over 25 years

CONSENSUS

Missouri is trying to show us they’re getting interested in solar power. However, now is the time to take some more serious action. Let’s get the state off the cutting down forests wood residue kick, and onto the solar bandwagon. Legislators in Missouri have taken the first step, but why not go further? For starters, why a renewable energy standard of only 11%? How about shooting for 25-30% or more? Governor Blunt signed the Green Power Initiative, but that’s not the end of the story. Missouri can do much better.

Read the 42 brilliant comments below or add yours!

Matt
Comment on January 2nd, 2008.

I would love to install solar, but the return on investment is way too far out to make sense. Government is clearly not serious about promoting alternative energy sources or they would offer larger tax rebates. I would rather build the structure in a more energy-efficient manner (eg. ICF’s, foam insulation, earth berm) and use the coop for power. Maybe someday solar and wind will make sense ecomomically.

larry j roberts
Comment on January 12th, 2008.

I would like to install a solar and wind system. I think the recent bill 54 will allow me to place the system in operation as a grid tied net metering. The bill should not have allowed donating it to the power company at any time – seems ridiculous.
I hope that a sun tracker will allow me to get maximum operation out of the system. For $2,000 tax credit or $6,666 of equipment, the project will have a small incentive. should have been a bigger incentive.

Michael Monteith
Comment on January 18th, 2008.

They have plenty to go by. Like California offers $2.2/watt and Nevada is like $3/watt rebate for solar. That reduces the cost per watt of putting in solar tremendiously to make it somewhat feasible. But still people use too much total electricity in the first place and need to reduce that. For me installing and buying my own equipment and installing it will defray the costs somewhat. Looks like windmills are better from the cost per watt side of it. I’ll probably have a combination.

Missouri needs to get aggressive and make up for lost time. Give incentives to reduce how much electricity you use. Incentives for using more efficient devices. Incentives converting to solar and wind. It should have already been in place.

Michael

Comment on February 25th, 2008.

Hello:

We are G2Power Technologies, llc and we are a St. Louis based solar company offering solar products to the Missouri region. Please visit our page and learn more about how you can install solar products to your home and start reducing your addiction to utility companies.

http://www.g2power.com
sales@g2power.com

ray
Comment on April 22nd, 2008.

When will there be a tax break to be able to make a diffrence in the green ?

Andy
Comment on May 1st, 2008.

I don’t see any power companies donating their power.

Dana Connell
Comment on June 15th, 2008.

Hi, My husband is in construction, but he would like to get into something else. He was interested in becoming an installer of solar/wind mills. Since gas prices have soard we thought people could save money by going solar. We live in Missouri and know nothing about solar and need some assistance. Is this a profitable business? Thanks

Diana
Comment on June 22nd, 2008.

I disagree with the statement that wood burning is not green. The technology today allows for efficient burning of wood and for those of us in heavily wooded areas, this is a very manageable and renewable resource.

Missouri needs to get on the ball and do net metering correctly, not to benefit the electric company. If they keep going like this, when my house goes up this year, I’ll go off the grid. Wind is very plentiful here in the Ozarks and possibly garners a better bang for the buck.

Brad
Comment on August 21st, 2008.

I will probably be going solar soon but not net metering as long as there is a chance I will be donating to the power companies. That is wrong if I generate it I should be paid for it the same as we have to pay the electric company. They will shut you off if you don’t pay. Why should they get anything for free?

Oneal
Comment on August 29th, 2008.

This entire program is ridiculous! Why would anybody pay $54,000 plus interest to save $900 a year for 27 years. It another government mortgage trap. I guess whoever thought of this consider people who would like to save as simply…fools. Take your panels and ram it.

Dave
Comment on September 6th, 2008.

I’m disappointed to read that the the federal tax credit for going solar is a measley 2 thousand dollars. That is hardly a drop in the bucket when paying 54 grand for a system. What about Missouri? No tax credits for this??

Comment on September 7th, 2008.

Hi Dave,

We’re disappointed as well that the federal tax credit for going solar is a measley $2,000. However, we’re even more disappointed that congress failed to even renew that incentive, so it expires December 31st. On the table is a $4,000 maximum credit for solar that will probably be passed next year. Still though, you’re correct this is a drop in the bucket. Much of the incentive for solar adoption will be left to the states. Hopefully Missouri gets on board requiring their utilities to derive a significant portion of energy from renewables in the near term. That way, utilities will be forced to provide significant rebates or agree to purchase clean power from solar adopters at a higher rate. We urge all Missouri residents to contact their congressmen to make this happen.

Mike Rakestraw
Comment on November 19th, 2008.

Just a note, as of now you can recive solar paneling for as little as a dollar a watt, figuring the average house uses 1000 watts a day, for a 1000 dollars you can run your homes electronics for free!

Gene
Comment on December 3rd, 2008.

Back in the 1970’s my parents were given for free a solar box that was installed on the outside of their home, this heated the whole house, where can I get the same thing for my house. You don’t see anything like this any more. I live in North Kansas city , mo.

Chris
Comment on January 1st, 2009.

We are in the proccess of building a solar furnace using recycled aluminum cans. Depending on your building and salvaging skills these can be built for under $100 and produce 5000 btu’s of heat. Lots of construction videos for free on youtube.

William Brueggen
Comment on January 19th, 2009.

We have 30,000 sq ft of office space & 40,000 sq ft of warehouse. How do I calculate how many solar panels I will need to provide electricity for my whole operation? Is there a formula?

Comment on January 19th, 2009.

William,

Panel estimates should be made based on energy usage, not the square footage of your space. Reason is, you could have an art gallery in all that space or you could be running heavy machinery in that space. The answer is to take a look at your power bill over the past year. Then, take an average of the kwh used over all those months. With that number in hand, you can get a sense of how many panels you’d need to eliminate your bill. Each panel might account for roughly 25-35kwh, depending on access to sunlight.

Hope this helps,

- Dan

LeeAnn
Comment on February 12th, 2009.

At the recent KCMO Home remodeling show I asked a representative of a solar panel manufacturer for a list of dealer/installers in the state. Not only did he refuse to pass along the information but he also told me that Missouri was interpreting the 35% tax rebate for solar systems installed “after January 1, 2009″ to be anytime…and will not grant tax rebates until sometime in 2010. Is this information correct?

Mark
Comment on February 16th, 2009.

If and when the State and Federal governments agree to truly support and ’subsidize’alternative enery with a meaningful tax credit (like 50% of the total system cost), people will start installing them and this new industry will flourish. Until then it’s just more political lipservice!

Shawn Evans
Comment on March 1st, 2009.

Yes there needs to be cheaper ways to go solar and wind. Mainstreaming will bring it down. But Missouri is behind the times to the smaller towns need to go with mandatory recycling and incentives to get off grid or grid tie to put in cheaper systems. I am building a work shop I would like to have solar and wind power for this put it would break me to install. If someone has a way I could do this cheaply let me know.

Tammy
Comment on April 1st, 2009.

The information you have posted under legislation for Missouri’s wood energy tax credit is incorrect & misleading. You make is sound like a tax credit is given for cutting down trees. The credit is given for using Missouri forestry industry residue.
“Residue that results from normal timber harvest or production from a location within Missouri. It includes slash, saw dust, shavings,edgings, slabs, leaves, bark and timberthinnings from timber stand improvements which are located within Missouri.”
To make
(C) Processed wood products,Wood pellets,
cubes, charcoal, flour or any product
that results from thermal, chemical or
mechanical processes that sufficiently alterMissouri forestry industry residue into a product that can be used as an energy source.
So it is not cutting down healthy trees-it is using “leftovers”

Comment on April 2nd, 2009.

Thanks Tammy,

Noted above.

T. Rasgaitis
Comment on November 17th, 2009.

I’m a medically retired veteran. Since I only collect disability I do not have to file taxes. Where is my incentive. What the state offers is nothing.

Comment on November 17th, 2009.

Hey, T. That’s something to ask your legislator, I’m afraid. Not us. If you can’t benefit from the Federal 30% tax credit, you’re not going to receive any incentives at this point. However, there may be some programs headed your way where you can finance the system through a special tax assessment on your property. Generally, these payments can be less than your current electric bill, but I don’t think any city in Mighty Mo land has adopted a PACE financing, sometimes known as “the Berkley program” or “municipal financing.”

Bottom line, you’re not gonna get any incentives at this point, but that may change in the next few years. Also, please bug your local lawmakers to adopt PACE.

Wish I could be more help.

sharkman
Comment on December 25th, 2009.

Wait a minute did I read this correctly any excess energy that is generated and accumulated during the year does not get issued as a credit or a rebate check? It just gets picked up by the utility company and billed out? If this is correct that is insanity. I am located in a particularly winded area with consistent year around avg wind speed at local air port(1-/2 mile away) and I am over 1000 ft higher elevation I am prime for wind and solar. I was thinking about powering the workshop I am building utilizing the 2 but would never use all i would generate because would only use maybe 20 hours a week but would need all the panels to power 100% I was under the impression it was fedral law that the electric companies had to buy back all kwh that went unused at whatever the current rate was. I would rather dump my unused electric than give the even 1 watt

Comment on January 4th, 2010.

Please update your site for the new $2 a watt Solar rebates available through KCPL and Amergen UE. We are awaiting approval to install the first system under the Amergen UE program right now. These rebates went into affect on January 1st.

Comment on January 4th, 2010.

Thanks, Kevin! We try to keep track of all 50 states, so lots to keep up with. We appreciate your (and others’) updates.

Brett
Comment on February 10th, 2010.

The power company’s are scarred, as they see what happened to the landline telephones business over the past 10 years due to people adopting cell phones and VOIP, and shutting down their expensive land lines, AT&T and Verizon have laid off thousands of workers and more are in the works.

The same will happen to power company’s once solar is adopted on a large scale give it another 10 years, someone will make the systems cheaper and better than by power companies

Comment on February 11th, 2010.

We’re already on our way, Brett. It’s a little complicated, but see this report from the NREL. Solar is already at grid parity in some states. Not Missouri yet, but sooner than you think.

http://www.nrel.gov/docs/fy10osti/46909.pdf

Rebecca
Comment on May 25th, 2010.

I have a horse farm in Kansas City that sits on the top of the hill and gets more than six hours of direct sun light per day. We were thinking of installing solar panels on the roof. We aren’t a gigantic energy user — although we run fans on the horses in the summer — but our bills run several hundred dollars per month. We had thought we could sell the excess energy to the grid. From what I’ve seen that won’t work in MO. Can we take our property “off the grid” entirely if we produce enough energy?

Erika
Comment on June 26th, 2010.

If I buy a system that is too big, what happens to the “extra” power if I’m not attached to the grid? If I understand correctly from friends’ systems, “extra” power is simply lost if their batteries are full. Is there any benefit to turning the system “off”? Seems like staying attached to the grid is better (in an emergency, in February, whatever) but important to install a system that is about the right size or a little too small.

Andrew
Comment on July 11th, 2010.

I would like to install solar on the trailer I’m currently in but the cost you mention is prohibitive.

Kenneth N. Amend
Comment on August 5th, 2010.

I myself was raised in South Florida, though after the Navy decided to relocate as my parents did here in Jefferson City,Mo.I have worked in the roofing industry for roughly 12 years. Though solar has gotten my attention.Would LOVE to learn more…though given excess energy back to the power company is a slap in the FACE..especially after getting teased with such a small rebate. I don’t claim to be the smartest, wheres the incentive.

Marie
Comment on October 3rd, 2010.

Over time, *every* technology has become cheaper – except solar energy. Look at the prices of televisions, VCRs, DVD players, home computers, etc. In the beginning, only the “rich” could afford the new toys, but competition brought the price down fast.

With gov’t subsidies, the companies have no incentive to bring the prices down. They can still get tens of thousands of dollars in profits in places where the gov’t is willing to foot the bill.

If we kill *all* gov’t subsidies, companies will become more efficient and drop their prices in order to survive. Kill the subsidies, then wait about four or five years. Solar will be affordable for everyone.

James R. Wattler
Comment on November 4th, 2010.

Hellow Everybody this is James Wattler of Eureka. Several individuals including myself are trying to turn our campus St. Louis Communtiy College into a green campus. We are working on several possibilities. If anyone has some ideas that I can bring up to the Disctrict Green Committee that would be greatly appreciated. Shoot me an e-mail at jwattler4@my.stlcc.edu
*companies in the area that are cheap
*grants we could get
*tax information
*price on panels
*savings facts
Thanks,
James

Pat
Comment on November 19th, 2010.

Very interested in building and installing a solar/wind grid tied battery back-up system. Is there any state or federal exp. DOE papers or guides. Sevral books solar or wind combining not so much. Also any local suppliers of inverters etc.

Gerard Nordskoven
Comment on November 30th, 2010.

Jesus Christ help us! Dead leaves and wood composting on the ground (slow oxidation) produce the same amount of CO2 as a tree burning (fast oxidation) in the wood-burning stove. Harness it.

Kent
Comment on February 4th, 2011.

It is the cost that keeps me from installing. I could remodel my house for what installers want ($60k at this time) and have it more efficient as a matter of guess work, I could probably have my house 50% more efficient with $20 of investment. No need to go solar until the manufacturers and sellers get reasonable, 5 year 100% warranty parts and labor and a 5 year RIO is reasonable.

Sue
Comment on July 12th, 2011.

I see some have commented that they would like to get involved directly in the solar industry and don’t know where to start. I found solar training that is coming to Missouri next week (July 18-22, 2011). Information can be found here: http://preview.tinyurl.com/ONTILITYtrainingSTL

I noticed there are also scholarships for displaced construction workers.

Comment on July 23rd, 2011.

Just finished the above mentioned Solar Energy Systems Training given by ONtility instructor: Tim Coats. 1 week, and 40 hours of intense, but not “tense” education in PV Solar residential, & commercial applications. At GrayBar, St Louis. Course included a 6 panel install on a ground placed shingled roof at = 102 F!
Course titled: NABCEP Entry-Level Solar Electric Systems, might be a bit misleading. I started at the entry level, and now ave a much more sophisticated understanding of PV Systems than many commercial building maintaince managers whom thought they have it all figured out.
Am available, and actively seeking employment in the St Louis Metro Solar Industry. Appreciate your consideration. PS: Mr. Coats was a very fine Instructor!

Gerry
Comment on November 4th, 2011.

Energy conservation with solar panels on the roof equal money in the bank.

In 1984 my wife and I built a 1900 square foot home in surburban (Sappington) St.Louis. We had purchased the lot two years previous and had spent the intervening months planning. We had survived the energy crisis of the 70’s and planned a super-insulated house with solar potential. The house was built with a south facing front which we planned to utilize for solar power. Unfortunately in the 1980s the cost of solar electric panels for the house would have exceeded $50,000 with no incentives and questionable tax credits. Rather than that type of investment we learned how to minimize our energy use.

The construction is of highly insulated SIP (structural insulated panels) which we learned about a the St Louis Builder’s and Home Show. The panels are of 4′ x 8′ x 6” which are made up of 3/8” wafer board sheets with 6” of foam insulation between. The wall insulation is rated at R-25 and we have R-38 attic insulation. The panels were advertised to save approximately 50% of heating and cooling costs. There was a slight premium to build using these panels but we looked at the energy savings to pay this back within 7 to 10 years. Since the construction was so efficient we enjoyed energy bills which were approximately one half of those of our neighbors. The house was so efficient that Union Electric (now Ameren) examined their meter during the first summer because our electric usage was so much lower than surrounding homes.

We installed a instant natural gas water heater that made hot water on demand with no storage.
The only noticeable “solar” treatment was the 18′ glassed front porch which provides passive heat during the winter to the house. With this feature we were able to take advantage of a $5,000.00 solar tax credit offered by the IRS.

We have used flourescent tube lighting and CFL (compact fluorescent lights) bulbs throughout the house and worked hard to minimized our energy costs. The basement was finished with R-19 insulated walls and an old water heater tank was adapted as a preheater for the demand water heater. A preheater tank allows the cold water entering the house (approximately 45 to 50 degrees during the winter to reach 65 degrees before being heated for use). I am planning to add a solar water next year. Last year we took advantage of the Laclede Gas and IRS incentives and replaced our HVAC system with a 95% efficient furnace and a 14 SEER air conditioner. Our already low total energy costs dropped to $105.00 per month.

During the past winter I began investigating the possibility of adding Photovoltaic panels to our home and discovered the following:
St Louis receives 92% of the solar energy potential as Miami .
Each 1 kWh produced from solar there is saving of burning approximately one pound of coal and it’s associated pollution.
The life of a PV systems is at least 30 years with almost no maintenance.
For every annual $1 savings of electricity that is offset with solar adds approximately $20 to you homes value.
Ameren offers significant incentives for solar electric systems (almost 50%).
The federal government offers (until 2016) a 30% tax credit that would also apply to this installation.

Wishing gave way to planning and that to installation. On July 18 of this year, during the 100 degree heat of the summer, we became electric producers. A 4.1 KW system was installed using 18 panels installed on the south facing slope to the roof. The installation was completed in only 3 days, 60 days after applying for permits and Ameren approval. The initial cost of the system was approximately $24,000.00 but within 60 days we received two checks from Ameren totaling $13,500.00 and after the solar tax credit is taken on our 2011 tax return the cost of my system with be less than $6,000.00.
Since the installation, and not changing the thermostat setting, our electric bills have averaged $6.00 per month. I know that we will never achive a net 0 in energy costs but when considering that the average homeowner in St Louis spends over $2,000 a year for electricity our estimated annual cost will be under $150.00.

We chose this type of investment for a variety of reasons, the first was the potential for huge cost saving for the next 30 years, along with the reduction of greenhouse gassses associated with the production of our electricity. We had prepared for the addition of solar power for our house by minimizing our electric use. By minimizing our energy demand we were able to reduce our photvoltalic system size. At the present Ameren rates, the system will pay for itself in less than 10 years and with any rate increases that time will shorten. Where else can you get a 7% rate of return on very safe investment. Not at the paltry rates paid by banks. Possibly better rates in the stock market, but is that safe? Not with a hybrid car that costs $25,000.00 with a small credit, depreciation, and will require eventual battery replacement.

We took the economically and environmentally sensible approach. We went solar and love it.

There are many solar companies operating in the St Louis area and a quick internet search will offer you many choices. Learn how to reduce you electric power use, (visit “www.energystar.gov”) get your estimates, check with the BBB and join the solar powered life.

Bryan Hornsby
Comment on April 26th, 2012.

KCP&L now has $2/watt rebate for Kansas City customers…think this should be updated! http://www.sovdepot.com

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