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Is Solar Worth It in Missouri in 2026?

Complete analysis of solar costs, incentives, net metering, and payback for Missouri homeowners — without the federal ITC.

Cost Per Watt

$2.70

installed

Electricity Rate

$0.150

per kWh

Payback (No ITC)

13.9 yr

current reality

Payback (With 30% ITC)

9.7 yr

hypothetical

25-Year ROI

80%

return on investment

Incentive Breakdown — Missouri

Available incentives for a typical 7kW residential solar system in Missouri

Federal ITC (25D)

Expired

The federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.

State Tax Credit

None

Missouri does not offer a state tax credit for solar installations.

SREC Market

Not Available

Missouri does not have a traditional SREC market.

Property Tax Exemption

Solar system value excluded from property tax assessment

Sales Tax Exemption

No statewide sales tax exemption for solar

Key Incentives: Property tax exemption for solar.

Solar Math — With vs Without Federal ITC

Cost breakdown for a typical 7kW residential system in Missouri

2026 Reality (No Federal ITC)

System Size
7 kW
Cost per Watt
$2.70/W
Gross Cost
$18,900
Federal ITC
$0
Net Cost
$18,900
Annual Savings
$1,357/yr
Payback Period
13.9 years

Hypothetical (With 30% ITC)

System Size
7 kW
Cost per Watt
$2.70/W
Gross Cost
$18,900
Federal ITC (30%)
-$5,670
Net Cost
$13,230
Annual Savings
$1,357/yr
Payback Period
9.7 years

Impact: Without the federal ITC, Missouri homeowners face a 4.2-year longer payback period — paying $5,670 more out of pocket.

Net Metering Policy — Missouri

How Missouri compensates your excess solar production

NEM 1.0 Full Retail Net Metering

Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.

Missouri requires net metering at full retail rate for systems up to 100 kW under PSC rules.

Cost Per Watt Benchmark — Missouri

Missouri Average

$2.70/W

National Average

$3.05/W

Typical 7kW System

$18,900

$2.00/W $3.50/W $5.00/W

Missouri's average installed cost is below the national average of $3.05/W

Breakeven Timeline

Without the federal ITC, a typical 7kW system in Missouri breaks even in 13.9 years. With the former 30% ITC, payback would drop to 9.7 years.

Without Federal ITC

13.9

years to break even

With Former 30% ITC

9.7

years to break even

Production Details

Peak Sun Hours4.6 hrs/day
Production1293 kWh/kW/yr
Annual Production$9,050 kWh
Annual Savings$1,357

Ready to Go Solar in Missouri?

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