It’s Time to go Solar!
Solar energy saves resources, is more affordable than ever, and shows the community that you or your business care.
Alternative energy has never made more sense in Missouri or Kansas. Today, solar panel costs are at all-time low while government solar incentives and rebates (particularly the Missouri Solar Rebate) are at an all-time high.
None of these solar incentives are exclusive: one may take any or all of the incentives they qualify for.
Net Metering: Missouri and Kansas, Residential and Commercial
Kansas and Missouri both have net metering laws in place (new in 2009). This allows you to get full credit for the power you produce. The net metering laws in both Missouri and Kansas require investor owned utilities (KCPL, Westar, AmrenUE, etc) to give consumers the full retail value for any solar power generated- the law also applies to smaller Co-Ops and Municipal Utilities in Missouri (through not required, many of these smaller utilities have net metering in Kansas as well). Net metering laws prohibit any charges for participation and involve a monthly roll over of “Kilowatt hour” energy credits up to calendar year.
Federal Tax Credit: Missouri and Kansas, Residential and Commercial
In general, credits are available for solar projects at homes and businesses The credit is equal to 30% of the total cost, with no maximum credit for both photovoltaic (electricity) and solar hot water systems. Taxpayers may take the credit against the alternative minimum tax (AMT), subject to certain limitations. Businesses may elect to take the tax credit in the form of a grant available within 90 days of installation.
Solar Equipment Depreciation: Missouri and Kansas, Commercial only
Businesses may deduct 85% of the total cost (no maximum) for new solar projects. The deduction can be done all in first year via Section 179 or through the general Modified Accelerated Cost Recovery System (MACRS) which offers an accelerated 5-year depreciation schedule.
Missouri Utility Solar Rebate: Missouri KCP&L/AmrenUE customers, Residential and Commercial
As of 2010 KCP&L and AmrenUE are required to give customers who install solar a rebate of $2.00 per watt (CEC-AC) with a maximum rebate of $50,000. The CEC-AC rating adjusts the rated capacity of the system, typically specified by the manufacturer in kilowatts (kW) DC, to account for real-world operational conditions and the efficiency of the inverter in converting DC to AC power. With the price per installed Watt being very low right now for solar this incentive is approximately 30 to 40% of the total cost of a solar project. The rebate is made in a single lump sum check to the consumer 30-60 days from the date of install.
| System Cost | Fed Tax Credit | KCP&L Credit | You pay only |
|---|---|---|---|
| 100% | 30% | 34% | 36% |
Example:
5 kW Residential System in Missouri under KCP&L
Initial Cost- 100%
Federal Tax Credit -30%
KCP&L rebate -34%
You pay only 36% of the total cost
| System Cost | Fed Tax Credit | KCP&L rebate | Depreciation Savings | You pay only |
|---|---|---|---|---|
| 100% | 30% | 31-40% | 30% | 0-9% |
30 kW Commercial System in Missouri under KCP&L
Initial Cost- 100%
Federal Tax Credit -30%
KCP&L rebate -31 to 40%
Depreciation Tax Savings - 30%
You pay only 0 to 9% of the total cost
When we apply solar to a sloping roof for a commercial project the total incentives can cover the entire cost of the project
The information presented here is for informational purposes only and is not intended to be tax advice-
For additional information on state and federal solar incentives we would suggest http://dsireusa.org/
