The average homeowner will save thousands over the 25-year operating life of their solar panels, and benefit from increased home value and environmental benefits.
- Qualify for 26% in Federal Tax Credits.
- Receive a rebate from your electric company.
- Receive a $500 rebate from our solar dealership or we pay your electric bill for 3 months.
- Lock in your electric rate for as long as you own the home.
- Add equity to your home.
- Own your own electricity instead of renting it and having nothing to show for the $1,000's down the drain every year.
Here’s how the numbers work for a 10-kW rooftop solar system in Missouri:
- Installing a typical 10-kW solar system should start at about $27,000 after the 2020 Missouri solar rebates. That's cheaper than solar has ever been, but it still might seem like a big investment. Do not worry, because after tax breaks and energy savings, your first-year costs will be considerably less than that.
- The Federal government offers a great tax credit worth 26% of system costs after the rebate. So, take 26% of $27,000, and you've got $7,020 you won't be paying to Uncle Sam next year. That brings your first-year investment down to $19,980.
- After the tax credit we subtract your first year’s energy savings, which we estimate to be $1,519. That reduces your cost after the first year to only $18,451.
- Those electricity savings will quickly make your money back, and your system will pay for itself in 12 years. That means free electricity until at least the end of your panels' 25-year warranty. We are talking $25,700 in savings over 25 years! The internal rate of return for this investment is not too shabby at 9%, but it likely is not as good as if you just put the money into a mutual fund.
- And here is a nice bonus to consider: your home's value just increased by nearly $20,000, too (your expected cost after incentives).
- In addition to all that cash (and home value), you have created some green for the earth as well by not using electricity from fossil fuels. It's like planting 459 trees a year, every year your solar power system is humming.
Here’s how the numbers pencil out for a Missouri homeowner who makes a solar purchase with a loan:
- Installing a typical 10-kW solar system should start at about $27,000 after instant rebates. That's how big your loan will need to be to cover it.
- The electricity you will save in the first year of operation would have cost $1,519, but your annual loan payments will be $2,479, meaning you would spend $960 on solar this year, but...
- You'll also see a huge tax break! The Feds give you 26% of the cost of your system back as an income tax credit, which in this case means $7,020. You will be paying overtime but getting the benefits up front!
- All those incentives mean you will come out $6,061 ahead after year 1. Your loan payments will be about $80/month more than your energy bill savings, but that difference will get smaller as the utility company raises rates every year.
- By the time you have paid off your loan in 2034, you'll see yearly savings of over $2,000, and they'll keep getting larger as the utility raises rates. After 25 years, your total profit will be over $15,500!
- On top of the green that will stay in your pocket, your system will mean green for the environment, too—459 trees-worth, every year!
Missouri's Renewable Portfolio Standard
15% by 2021
Missouri's Solar Carve-Out and SRECs
0.3% by 2021
Missouri Electricity Prices
Missouri has what basically amounts to a statewide rebate program for solar installations, because several of the state's largest electric utility companies offer rebates for their customers. Here's what's available for homeowners in Missouri:
|Ameren||$250/kW||Must be installed before 2023|
|Columbia Water & Light||$500/kW, up to $5,000||Must meet warranty and certification requirements.|
|Empire District Electric||$250/kW||Must meet warranty and siting requirements and be installed by 2023|
|Kansas City Power & Light||$500/kW||Must meet warranty and certification requirements; funds nearly exhausted|