Solar Investment for your Home in Missouri
Boosting Home Value with Solar
Homes equipped with solar panels in Missouri typically see an average increase in resale value of about 4.1% . For instance, a home valued at $250,000 could appreciate by approximately $10,250 post-installation.
Beyond the immediate financial uplift, solar installations often lead to faster sales. Prospective buyers are attracted to the prospect of lower energy bills and the environmental benefits associated with renewable energy sources. Below we’ll explore exactly how solar saves you money, some of the cost savings, and also considerations for solar financing.
Financial Incentives and Cost Savings
As of May 2025, the average cost of solar panels in Missouri is around $2.74 per watt, making a typical 5 kW system approximately $13,701 before incentives . After applying the 30% federal tax credit, the cost drops significantly, enhancing affordability.
Missouri homeowners can also benefit from net metering policies, allowing them to earn credits for excess energy produced.
So what is Net Metering?
Net metering is a billing arrangement that allows Missouri homeowners with solar panels to send excess electricity they generate back to the grid and receive credit for it. Your solar system produces electricity, and when you generate more than you use your electric meter spins backward. That surplus energy goes to your utility provider, and you bank credits you can use later when your panels aren’t producing as much (like at night or during cloudy days).
Under Missouri law, investor-owned utilities are required to offer net metering for systems up to 100 kW (which covers virtually all residential systems). Here’s what that means:
One-to-One Credit: Missouri uses a true net metering structure, meaning you get full retail rate credit for the electricity you export to the grid. If you pay $0.11 per kWh for electricity, you also get $0.11 in credit per kWh sent back.
Monthly Roll Over: If you generate more credits than you use in a billing cycle, those credits roll over to the next month.
Annual Cash-Out: If any credits are still unused after 12 months, they are paid out to you—but only at the utility’s avoided cost rate, which is much lower than the retail rate (usually around $0.02 to $0.03 per kWh). So it’s smarter to size your system close to your actual usage.
How Net Metering Offsets Your Bill
Let’s say your solar system produces 1,000 kWh in a month, but you only use 800 kWh. You’ll carry a 200 kWh credit into the next billing period. The next month, if you use more than your panels produce, those credits will automatically be applied, reducing or even zeroing out your bill.
This means solar not only reduces your monthly electric costs, but when designed properly, it can even allow some homeowners to pay almost nothing annually for electricity—just a basic connection fee.
Utility Providers Offering Net Metering in Missouri
Most major utilities in Missouri participate, including:
Ameren Missouri
Evergy (formerly KCP&L and Westar)
Liberty Utilities
Municipal utilities and rural electric co-ops are not required by law to offer net metering, though some do voluntarily. It’s always best to check with your specific provider before installing a system.
Warranty Transferability
Most solar panel warranties are transferable to new homeowners, ensuring continued coverage and peace of mind. However, it’s essential to coordinate with your solar provider during the sale process to facilitate the transfer and ensure all documentation is appropriately updated.
How Do Homeowners in Missouri Pay for Solar?
Installing solar can cost between $13,000–$20,000 before incentives, depending on system size. While the 30% federal tax credit helps bring that number down, many homeowners still choose financing options to make solar more affordable upfront. Here’s what that looks like:
1. Cash Purchase
Best long-term ROI
No loan payments
You own the system outright, meaning you get 100% of the tax credit and incentives
Increases home value without encumbrances
No liens or transfer issues during resale
2. Solar Loans
Missouri homeowners often use unsecured loans (like personal or home improvement loans) or secured loans (like HELOCs or home equity loans).
Secured Loans (e.g., HELOCs)
Lower interest rates
Tied to your home as collateral
You still own the system
Unsecured Loans
Higher rates, but quicker to close
No home equity required
With both, you own the system, so you get the tax credit and full utility savings.
When selling your home, these loans typically must be:
Paid off at closing, or
Assumed by the buyer, depending on the lender (this is rare and often complicates the sale unless buyer agrees upfront)
3. PACE Financing (Property Assessed Clean Energy)
Offered in some areas of Missouri, though not statewide.
Loan is tied to your property taxes, not your credit
Payments are made through your annual property tax bill
Tax-deductible interest in some cases
Caution: PACE loans can delay or derail home sales. Since the lien is attached to the property, buyers and lenders often require it to be paid off before sale. If you have a PACE loan, it’s smart to start that process early when listing your home.
4. Solar Leases and Power Purchase Agreements (PPAs)
These are less common in Missouri but sometimes marketed by national installers.
You don’t own the system
A third party installs and maintains it
You pay a monthly lease or a per-kWh rate for the energy it generates
Downside: Leases and PPAs can make home sales tricky. Buyers must either:
Assume the lease (many don’t want to), or
You buy it out before closing
Because you don’t own the system, you don’t get the tax credit or full resale value benefits.
What’s the Best Option?
For Missouri homeowners looking to maximize their investment:
Cash or secured loan financing offers the best combo of ownership, incentives, and future home value
If financing with a loan, make sure to ask about payoff terms and transferability before signing
Always involve your solar provider if you plan to sell within the loan term, to avoid delays