Commercial Solar Power - Solar Panel Incentives & Tax Credits in Missouri

Solar electric power is a great way to reduce your commercial buildings carbon footprint, but benefits don't stop there. Commercial solar power is supported by various incentives in the form of state rebates and federal tax credits, as well as business development grant programs. These programs individually, or combined when applicable, provide immediate savings, or even cash payments for most commercial solar power installations.

Commercial Solar Systems

Commercial solar systems, most commonly achieved through the use of grid-intertied solar panels, are slightly different from residential solar systems that operate on an off-grid basis. Commercial solar panels or photovoltaic systems are made of solar cells that capture light energy from the sun and convert it directly into electricity. To achieve this solar cells send the sun's light energy to an inverter which converts it into usable AC power, the same type of electricity that is sent from the utility grid. The electricity, or power, then travels from the inverter to the electrical services panel where it is distributed throughout the building.

Not all solar panels and inverters are suitable for commercial use; some are designed specifically for commercial buildings and large loads of electricity, while others are strictly for residential use and smaller scale projects. It is important to consult with a reputable and experienced commercial solar panel installation company, like Kirberg, who is capable of not only guiding you through the selection and purchase process, but also able to install the solar panels on your roof.

Solar Power Utility Credits

When solar panels are operating in optimal conditions excess power can be produced. When this occurs the power flows from the converter into the utility grid via the electric meter, causing the meter to run backwards, resulting in a credit with the utility company.

Each utility company has different policies and procedures for when a commercial building feeds their excess electricity into the utility grid. It is important to review the utility company's net metering agreement which states how credits are applied. Additionally, utility companies will provide guidelines on the use of a time-of-use-meter, which applies varying rates of credit according to the time of day, week and month that your solar panels send electricity back into the grid. For example, higher credit rates are applied during times of high energy consumption, such as during the afternoon in summer months. Kirberg recommends that you install a time-of-use-meter as most building owners will benefit and increase their energy credit.

Commercial & Residential Solar Energy Tax Credit

Residential home owners are granted an energy tax credit of 30% of the total expenses, which include installation of residential solar panel (PV) systems, solar thermal systems, fuel cells and labor expenses. A tax credit is a sum deducted from the total amount a taxpayer owes which you should claim on your federal income tax form.

All residential solar panel systems that are installed and operational by December 31, 2016 are eligible for a 30% tax credit on the cost of the materials and labor expenses with no cap. The residential tax credit can only be applied to your primary residence.

However, tax credit policies differ for commercial solar panels than residential. Below is an outline of the commercial solar power tax credits for building owners in St. Louis and Kansas City.

St. Louis, MO Solar Energy Tax Incentives

• Incentive Type: Utility Rebate Program
• Eligible Renewable/Other Technologies: Photovoltaic systems
• Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Fed. Government, Agricultural, Institutional
• Amount: $2.00/W DC
• Maximum Incentive: $50,000
• Eligible System Size: Maximum capacity of 100 kW (the limit for net metering in Missouri)
• Equipment Requirements: Equipment must be new; modules and inverters must have a minimum warranty of 10 years; lockable external disconnect switch required
• Installation Requirements: System must be grid tied, net metered, and permanently installed on the customer's property

Kansas City, MO Solar Energy Tax Incentives

• Incentive Type: Utility Rebate Program
• Eligible Renewable/Other Technologies: Photovoltaic system
• Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Tribal Government, Fed. Government, Multi-Family Residential, Agricultural
• Amount: $2 per watt (CEC-AC)
• Maximum Incentive: $50,000
• Eligible System Size: Maximum capacity of 100 kW (the limit under Missouri's net metering law)
• Equipment Requirements: Equipment must be new and certified by the California Energy Commission (CEC); modules and inverters require 10-year manufacturer's warranty; lockable external disconnect switch is required.
• Installation Requirements: Systems must be permanently installed, grid-tied, and net metered

For more information read 7 Steps to Installing Solar Panels or contact a Kirberg solar panel installation expert and learn how you can start saving money and powering your building with solar energy.