Solar Incentives in Missouri
Missouri homeowners installing solar in 2026 have access to a modest set of state-level incentives. Under the Net Metering and Easy Connection Act, all electric utilities in Missouri — including investor-owned utilities such as Ameren Missouri and the Evergy Missouri companies, as well as municipal utilities and rural electric cooperatives — must offer net metering for customer-owned renewable systems up to 100 kilowatts. Net excess generation is credited at the utility's avoided fuel cost as defined by the Missouri Public Service Commission, meaning credit rates vary by utility and are not a flat statewide figure. Homeowners in Columbia may also qualify for a rebate of $500 per kilowatt of installed capacity from Columbia Water & Light, with an additional peak-performance premium available, plus PV system loans up to $15,000 for residential customers. Missouri's PACE financing law authorizes municipalities to form clean energy development boards that can finance solar installations repaid through a property assessment over up to 20 years; terms vary by locality. A low-interest state loan program also exists, but it is restricted to public schools, colleges, universities, and local governments — not private homeowners.
The federal picture has changed significantly for 2026. The residential Clean Energy Credit under Internal Revenue Code §25D — commonly called the 30% federal tax credit — expired for systems placed in service after December 31, 2025, under the One Big Beautiful Brain Act (Pub. L. 119-21). Homeowners who install a new residential solar system in 2026 do not qualify for that credit. The loss of what had been a substantial offset to upfront costs lengthens payback periods compared to prior years.
Missouri's residential electricity rate averaged approximately 13.44 cents per kilowatt-hour as of March 2026, up roughly 1.43 cents year-on-year. At that rate, solar generation displaces moderately priced grid power, but without the federal credit and with net-metering compensation set at avoided fuel cost rather than retail rates, financial returns depend heavily on system size, local utility, and available local incentives.
Figures here are verified as of June 2026 against official sources; programs change with each legislative session and utility rate case, and the Missouri Public Service Commission and Missouri Department of Natural Resources are the authoritative sources for current program terms.
Federal credit update. The federal residential Clean Energy Credit (the 30% “solar tax credit” under §25D) expired for systems placed in service after December 31, 2025. New 2026 residential installs do not qualify; a 2025 install can still be claimed on a 2025 return (IRS Form 5695). What this means for 2026 →
Current solar incentives in Missouri
Net Metering and Easy Connection Act
Missouri's Net Metering and Easy Connection Act requires all electric utilities in the state — investor-owned utilities (Ameren Missouri, Evergy Missouri Metro, Evergy Missouri West, Liberty), municipal utilities, and rural electric cooperatives — to offer net metering for customer-owned renewable systems up to 100 kW. Customers are billed only for net power used; net excess generation is credited at the utility's avoided fuel cost. Systems of 10 kW or less use a simplified all-in-one application, and utilities cannot impose fees or charges unique to customer-generators.
| Amount | Net excess generation credited at the utility's avoided fuel cost as defined by the Public Service Commission; no special standby or interconnection fees allowed. |
|---|---|
| Who qualifies | Customers of any Missouri electric utility with systems up to 100 kW powered by wind, solar (PV or thermal), hydro, or qualifying fuel cells, intended primarily to offset the customer's own use. |
| Administered by | Missouri Public Service Commission (regulated utilities); individual municipal utilities and cooperatives adopt conforming policies |
Source: Net Metering and Easy Connection Act (RSMo 386.890); PSC rule 20 CSR 4240-20.065; MO DNR Division of Energy fact sheet PUB2238 Official source →
Property Assessment Clean Energy Act (PACE)
Missouri's Property Assessment Clean Energy Act authorizes municipalities to form or join clean energy development boards that finance renewable energy improvements (including solar) and energy efficiency improvements on private property. Property owners repay through an annual special assessment on the property for up to 20 years, not to exceed the weighted average useful life of the improvements. Availability depends on whether the local jurisdiction has joined a PACE district; multi-jurisdiction districts operate across much of the state.
| Amount | Financing repaid via property assessment for up to 20 years; terms set by the local clean energy development board and capital providers. |
|---|---|
| Who qualifies | Owners of property in jurisdictions that have formed or joined a clean energy development board under the Act. |
| Administered by | Local clean energy development boards formed under RSMo 67.2810; oversight involvement by the Division of Finance, Department of Commerce and Insurance |
Source: Property Assessment Clean Energy Act, RSMo 67.2800 to 67.2840 Official source →
Missouri Energy Loan Program
The Missouri Department of Natural Resources offers low-interest loans from the state's revolving Energy Set-aside Fund for energy efficiency and renewable energy projects, including renewable energy systems, at public institutions. Eligible borrowers are public K-12 schools, public colleges and universities, and local governments and special districts (cities, counties, public airports, hospital, sewer, water, and ambulance districts). Recipients repay loans from energy cost savings, and repayments revolve into new loans. The application period is closed as of June 2026; funding rounds open via Notice of Funding Opportunity.
| Amount | Low-interest loans; amounts and terms set per funding round (see Notice of Funding Opportunity). |
|---|---|
| Who qualifies | Missouri public schools, public higher education institutions, local governments, and statutory special districts that own and operate the building or system being improved; not available to homeowners or private businesses. |
| Administered by | Missouri Department of Natural Resources, Division of Energy |
Source: MO DNR Energy Loan Program page; program brochure PUB3087 Official source →
Columbia Water & Light Solar Rebates
City of Columbia Utilities, the municipal utility for Columbia, pays solar rebates of $500 per kW of installed capacity, plus a premium rebate for systems designed to produce well during peak demand periods (calculated from azimuth, tilt, and shading). The utility also offers PV system loans of up to $15,000 for residential customers and $30,000 for commercial customers. This is a municipal utility program, not a statewide incentive.
| Amount | $500 per kW capacity rebate; additional peak-performance premium rebate; PV loans up to $15,000 residential / $30,000 commercial. |
|---|---|
| Who qualifies | City of Columbia Utilities electric customers installing solar systems. |
| Administered by | City of Columbia Utilities (Columbia Water & Light) |
Source: City of Columbia Utilities solar rebates program page Official source →
Verification note. Some official source pages for this state block automated access from our servers, so one or more figures here rest on the underlying statute or an official search result pending a final browser check. The cited official source is authoritative — confirm current terms there before you rely on a figure.
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Programs verified as of June 2026 against official state and federal sources (each cited above); refreshed quarterly as legislatures and utility rate cases change the rules. How we verify this data. This page is informational only — not tax or legal advice.