Missouri solar in 2026 is utility-driven — and the two big investor-owned utilities pay residential solar customers materially differently under the same statute (RSMo §386.890). The gap is large enough that your payback depends as much on which utility serves you as on system size, cost, or production.
The headline:
- Mechanism: Net Metering and Easy Connection Act under RSMo §386.890. Mandate applies ONLY to investor-owned utilities (Ameren Missouri, Evergy Missouri Metro, Evergy Missouri West, Liberty / Empire District). Co-ops and municipal utilities are NOT bound and set their own terms.
- The two big paths pay DIFFERENTLY:
- EVERGY (Metro / West) and LIBERTY: effectively one-to-one MONTHLY RETAIL net metering. Monthly excess offsets at retail (~$0.115/kWh). PLUS $0.25/W upfront rebate (residential).
- AMEREN MISSOURI: excess credited at AVOIDED COST even monthly — about 5.39¢/kWh summer (June-September), about 3.92¢/kWh winter (year-round average about $0.0466/kWh). Ameren's residential rebate has ENDED.
- System cap: 100 kW residential. Annual true-up zeros leftover credits at avoided cost (no cash payout; credits expire after 12 months).
- Federal §25D = $0 for systems installed after December 31, 2025 (OBBBA P.L. 119-21, signed July 4, 2025).
- NO Missouri state income tax credit.
- Property tax EXEMPT, PERMANENT under RSMo §137.100(10) — no year limit. (PROPERTY tax only — does NOT exempt sales tax.)
- Sales tax NOT EXEMPT — normal state + local applies.
- NO SREC market (Missouri RPS expired 2021, no replacement).
- NO statewide battery rebate.
- About $2.90-3.12 per watt install pricing.
- Payback about 13-17 years with federal $0 — better on the Evergy retail + rebate path, worse on the Ameren avoided-cost path.
Sources citing about 12-year payback assume the now-dead 30% federal credit. Missouri's modest electricity rates also limit per-kWh savings.
The case for Missouri solar: permanent property tax exemption + (if you're on Evergy or Liberty) retail-offset net metering plus $0.25/W rebate. The drags: federal $0, no state credit, sales-not-exempt, and Ameren's materially worse avoided-cost path if you're in eastern MO.
What changed federally — and what's still on Missouri quotes that shouldn't be
The federal Residential Clean Energy Credit (§25D) — the 30% homeowner credit — was repealed for systems installed after December 31, 2025. For 2026 Missouri buyers, the federal credit on a purchased system is $0. The same applies to home batteries purchased outright. The §48E commercial credit (30%) still exists, but only for leased or third-party-owned systems where construction begins before July 4, 2026 — and the lessor claims it, not you. Full federal context here.
The repeal came through the One Big Beautiful Bill Act (P.L. 119-21), signed July 4, 2025. Missouri-focused solar sites are slow on this — any 2026 quote still showing "30% federal through 2032" is using the dead pre-OBBBA schedule. If a 2026 MO quote includes "30% federal solar tax credit" on a cash purchase, ask the contractor to redo the math with $0 federal and verify with IRS.
VERIFIED 2026-06 · IRS §25D repeal under OBBBA P.L. 119-21The utility split — Evergy retail vs Ameren avoided cost
This is the central Missouri solar fact in 2026, and most coverage understates it.
Both utilities operate under the same statute (RSMo §386.890 — the Net Metering and Easy Connection Act), but they implement excess-credit compensation very differently.
EVERGY (Missouri Metro and Missouri West) and LIBERTY (Empire District):
- Effectively one-to-one MONTHLY RETAIL net metering.
- Monthly excess offsets at retail (~$0.115/kWh).
- Annual leftover at the annual true-up zeros out at avoided cost (no cash payout — credits expire after 12 months).
- PLUS upfront residential rebate of $0.25/W. On a typical 7 kW system that's about $1,750; on 10 kW, about $2,500. Real money applied at install.
AMEREN MISSOURI:
- Excess credited at AVOIDED COST even monthly — about $0.0539/kWh summer (June-September), about $0.0392/kWh winter (year-round average modeled at about $0.0466/kWh).
- Materially worse than retail — roughly 40-50% of the Evergy retail-offset rate.
- Ameren's residential upfront rebate has ENDED. No $0.25/W incentive on the Ameren path.
The math difference is structural: an Evergy / Liberty customer earns about $0.115 per kWh exported (retail offset) and starts with a $0.25/W rebate off install cost. An Ameren customer earns about $0.047 per kWh exported (avoided cost) and pays full install cost. On the same system the Ameren path produces materially lower 25-year savings.
The page selector lets you switch between the two cases to see your specific payback. Verify which utility serves you before signing.
Co-ops and municipals: NOT bound by RSMo §386.890. Some offer retail-offset terms; some pay avoided cost only; some offer nothing. If you're not on one of the four named IOUs, verify your specific utility's tariff in writing.
VERIFIED 2026-06 · RSMo §386.890 / §137.100(10) / MoPSCState income tax credit — does NOT exist
Missouri has NO state solar income tax credit for residential. The state-level financial picture in 2026 is the net metering framework (Evergy retail vs Ameren avoided cost), the $0.25/W upfront rebate on Evergy / Liberty (Ameren's has ENDED), and the permanent property tax exemption — and that's it.
If a contractor includes a "Missouri state solar credit" line in your quote, ask for the statute citation; there isn't one.
Property tax — EXEMPT and PERMANENT (don't confuse for sales)
Missouri exempts residential solar from personal property tax under RSMo §137.100(10). The exemption is PERMANENT — not year-limited, no expiration. Solar systems are exempt from personal property tax indefinitely.
This is a real, structural plus. Unlike states with time-limited exemptions, the value of avoiding property-tax assessment on solar-driven home value uplift accrues over the full 25-year analysis horizon.
CRITICAL — common confusion: RSMo §137.100(10) covers PROPERTY tax only. It does NOT exempt sales tax. Missouri does NOT have a solar sales tax exemption — normal state + local sales tax applies to your install. Don't read the property exemption as a sales tax exemption. The two are different statutes with different scopes.
VERIFIED 2026-06 · RSMo §137.100(10); Missouri Department of RevenueSales tax — NOT exempt
Missouri does not exempt residential solar from sales tax. There is no solar-specific sales tax exemption — normal state + local sales tax applies to your install.
This is sometimes confused with the property exemption under RSMo §137.100(10), which is property tax only. Make sure your installer is properly including sales tax in your installed quote — the total install bill is not tax-free.
SREC / RPS — does NOT exist
Missouri has NO Renewable Portfolio Standard and NO SREC market for residential. The Missouri RPS expired in 2021 with no replacement.
There is no SREC revenue stream available to MO residential solar owners. Any quote citing "SREC revenue" is fictional.
This RPS gap is also the underlying reason for the main forward risk on Missouri solar (see below).
Battery — no rebate, resilience case
No statewide battery rebate in Missouri. Federal storage credit is $0 (§25D repealed for storage purchase).
Arbitrage gap depends on which utility serves you:
- Evergy / Liberty retail-offset path: arbitrage gap is minimal (export earns retail = self-consumption value). Battery doesn't help much economically on this path.
- Ameren avoided-cost path: gap is about $0.07/kWh (retail $0.115 vs avoided $0.0466) — battery has more arbitrage value here, but $12,000 capex still doesn't pay back on arbitrage alone.
Resilience case is real for Missouri: tornado alley, severe Midwest weather, summer storms, winter ice events. If you want backup for storm season, a battery makes sense — for the resilience, not the dollar return.
The honest payback — utility-driven, 13-17 years
At default install pricing of about $3.00/W (range $2.90-3.12), typical Missouri solar-only payback runs in the 13-17 year range with the federal credit at $0:
- Evergy / Liberty path: closer to the 13-15 year range — full retail offset on monthly export, PLUS the $0.25/W upfront rebate that reduces net cost.
- Ameren path: closer to the 15-17 year range — avoided-cost monthly export at about $0.047 instead of retail $0.115, and no upfront rebate.
- Sources citing about 12-year payback assume the now-dead 30% federal credit. Don't use those figures for 2026.
Missouri's modest electricity rates (~$0.115/kWh) mean per-kWh savings are smaller than in higher-rate markets. The structural strengths are the permanent property exemption + (on Evergy / Liberty) retail offset + rebate, not exceptional per-kWh value.
Right-sizing matters: at the annual true-up, leftover credits zero out at avoided cost (no cash). Don't oversize past your annual consumption.
VERIFIED 2026-06 · eia.govHow to read this — Missouri's case for solar
MO solar in 2026 is utility-driven and incentive-driven (the $0.25/W Evergy / Liberty rebate is the largest live incentive).
- Verify which utility serves you before sizing. Evergy / Liberty (retail offset + $0.25/W rebate) vs Ameren (avoided cost, no rebate) produce materially different payback on the same system.
- On Evergy or Liberty, claim the $0.25/W upfront rebate — that's $1,750 on a 7 kW system, $2,500 on a 10 kW system. Real money applied at install.
- On Ameren, expect the avoided-cost math (about $0.047/kWh export year-round average; summer $0.0539, winter $0.0392). The math is materially worse than Evergy / Liberty.
- Right-size to your annual consumption. Annual true-up zeros leftover credits at avoided cost (no cash payout — credits expire after 12 months). Don't oversize for export.
- Reject any 30% federal credit on a 2026 cash purchase. §25D was repealed effective for systems installed after December 31, 2025 (OBBBA P.L. 119-21, signed July 4, 2025) — sites still citing "30% through 2032" are using the dead pre-OBBBA schedule.
- Reject any quote citing a Missouri state solar income tax credit. Doesn't exist.
- Don't confuse the property exemption for a sales tax exemption. RSMo §137.100(10) is PROPERTY tax only. Sales tax applies — verify it's in your installed quote.
- Don't budget for SREC revenue. Missouri RPS expired 2021 — no market.
- The permanent property exemption is real and accrues over the full 25-year horizon — a genuine structural plus distinct from time-limited exemption states.
- Battery for resilience, not ROI — no rebate, federal storage $0. Tornado alley + severe weather is the real case for backup.
- Watch the credit-rate erosion risk. The Missouri PSC sets net-metering credit terms and NEM-3.0-style downgrades are anticipated in future years. Existing systems would likely grandfather but verify.
If you're on Evergy or Liberty and can claim the $0.25/W rebate, Missouri solar is a respectable mid-tier case in 2026 — 13-15 year payback with the permanent property exemption locking in indefinite value. If you're on Ameren, the avoided-cost math pushes payback to 15-17 years and there's no offsetting rebate. If you were counting on the federal credit, on a state credit, on a sales tax exemption, or on SREC revenue — none of those apply.
Run your real Missouri payback →The honest picture
| Fact | Missouri | Source |
|---|---|---|
| Mechanism | Net Metering and Easy Connection Act — investor-owned utilities only | RSMo §386.890 |
| Federal credit | $0 (cash purchase) | IRS — §25D repealed under OBBBA P.L. 119-21 |
| State credit | NONE | (no statute) |
| SREC | NONE for residential — RPS expired 2021, no replacement | (no market) |
| Property tax | EXEMPT, PERMANENT under RSMo §137.100(10) — solar exempt from personal property tax with no year limit | RSMo §137.100(10) |
| Sales tax | NOT EXEMPT — normal state + local applies; RSMo §137.100(10) is PROPERTY tax only and does NOT cover sales | Missouri Department of Revenue |
| Net metering / export | Evergy + Liberty: one-to-one MONTHLY RETAIL offset (about $0.115/kWh); Ameren: AVOIDED COST monthly (about $0.0539 summer / $0.0392 winter) | RSMo §386.890; Evergy / Liberty / Ameren tariffs |
| Excess credit rate | Annual true-up zeros leftover credits at avoided cost — no cash payout; credits expire after 12 months | RSMo §386.890 |
| Retail rate | About $0.115/kWh (modest national-tier rate) | EIA |
| Install $/W | About $2.90-3.12 per watt before incentives | (industry estimate) |
| System cap | 100 kW residential | RSMo §386.890 |
| Battery treatment | No statewide rebate; federal storage $0; arbitrage gap minimal on Evergy / Liberty, about $0.07/kWh on Ameren | (no program); IRS |
| Payback range | About 13-17 years with federal $0 — better on Evergy / Liberty + $0.25/W rebate; worse on Ameren avoided cost (sources citing about 12 years assume the dead 30% federal credit) | this calculator |
| Main risk | Credit-rate erosion — Missouri RPS expired 2021 with no replacement; PSC may approve NEM-3.0-style downgrades in future years | MoPSC; legislative testimony |
| Utility coverage | Mandate applies ONLY to investor-owned utilities (Ameren, Evergy Metro, Evergy West, Liberty / Empire District); co-ops and municipal utilities NOT bound — they set their own terms | RSMo §386.890 |
| Rebate | Evergy (Missouri Metro / West) and Liberty (Empire District): $0.25/W upfront residential rebate; Ameren's residential rebate has ENDED | Evergy / Liberty rebate programs |
| Right-sizing | Important — annual true-up zeros leftover credits at avoided cost (no cash); don't oversize past annual consumption | RSMo §386.890 |
Before you commit:
- Reject any 30% federal credit on a 2026 cash purchase. §25D was repealed effective for systems installed after December 31, 2025 (OBBBA P.L. 119-21, signed July 4, 2025) — sites still citing "30% through 2032" are using the dead pre-OBBBA schedule.
- Reject any quote citing a Missouri state solar income tax credit. Doesn't exist. Ask for a 2026 statute citation; there isn't one.
- Verify which utility serves you before sizing. Evergy / Liberty (retail offset + $0.25/W rebate) and Ameren (avoided cost, no rebate) produce materially different payback on the same system.
- On Evergy or Liberty, claim the $0.25/W upfront rebate. That's about $1,750 on a 7 kW system, $2,500 on a 10 kW system. Real money applied at install. Ameren's residential rebate has ENDED — not available on that path.
- Don't confuse the property exemption for a sales tax exemption. RSMo §137.100(10) covers PROPERTY tax only — solar is exempt indefinitely from personal property tax. Sales tax still applies; verify it's in your installed quote.
- Don't budget for SREC revenue. Missouri RPS expired in 2021 with no replacement; no market.
- Right-size to annual consumption. Annual true-up zeros leftover credits at avoided cost — credits expire after 12 months, no cash payout. Don't oversize for export.
- Watch the credit-rate erosion risk. The Missouri PSC may approve NEM-3.0-style downgrades in future years; existing systems would likely grandfather but verify.
Estimates only — Ameren seasonal avoided-cost rates (summer / winter) and Evergy / Liberty net metering terms update with PSC filings; the $0.25/W Evergy / Liberty rebate is subject to program funding and may change year-to-year; co-op and municipal utilities are not bound by RSMo §386.890 and set their own terms. Verify with the Missouri Public Service Commission, your specific utility (Ameren Missouri, Evergy Missouri Metro / West, Liberty Utilities / Empire District, or your co-op / municipal), and the Missouri Department of Revenue. This is not financial advice.