For over a decade, electric rates have been steadily rising across the nation. Inflation, fuel costs, and the maintenance of power plants and distribution centers have caused rates to increase. According to the Energy Information Administration, Missouri’s average retail price of electricity rose 28.5% from August 2009 to August 2019. 

How can you counter Missouri’s rising electric prices? Learn more about how going solar in the Midwest can save you money. 

Average Electric Bill in Missouri

The average American spends $1,856 on electricity each year. In Missouri, the average electric bill is around $126 a month for 1,118 kilowatt hours of electricity. Missouri’s changing seasons affect monthly energy usage. You may pay more to keep your home or business cool during the dog days of summer. Similarly, in the dead of winter, your electric bill may increase as your heating system works harder to warm your home. 

Cost of Solar

Last year, solar energy produced about 2% of the electricity in the United States. As more federal and state incentives are created for solar, the cost of solar continues to decrease and more people make the decision to invest in solar panels. While electric rates steadily rise, the cost of solar energy systems has dropped more than 70% since 2010. 

Federal Tax Credit

There’s never been a better time to go solar! You could save on the total cost of your solar system by claiming a Federal Solar Tax Credit. Through 2019, this credit will pay for up to a third of your cost! This credit covers panels, inverters, and other equipment, as well as labor and installation costs. The Federal Solar Tax Credit decreases to 26% in 2020 and 22% in 2021 before expiring on December 31, 2021. 

How Much Do Solar Panels Save You?

Do solar panels really save you money? The answer is yes! Solar panels can save you anywhere from $15,000 to more than $45,000 over the course of 30 years. Solar panels are an investment that pays off. With solar, you’ll have more control over your energy and more money in your pocket. 

Lower Electric Bill

Your electric bill will never look the same after you install a solar energy system. Each month, you will only pay for the electricity used to supplement the solar energy you’re producing. Often your solar panels will provide you electricity during the day, and your utility company will provide you with electricity at night. 

Earn Money Back

With net metering, you’ll be able to see how much energy your solar panels produce and how much energy you still need from the grid to power your home or business. If your solar panels produce more energy than you need, you can sell that energy back to your utility company, who will apply the credit to your future bills. 

Higher Home Value 

The value of your home will likely increase when you add solar panels to your roof or property. Many potential home buyers are willing to pay more for energy independence and future savings. In February 2018, Zillow found that people were willing to pay 4.1% more for homes with solar panels. 

The Lawrence Berkeley National Laboratory found that buyers were willing to pay an average of $15,000 more for homes with solar systems. If you own a solar energy system, you won’t just reduce your carbon footprint; you’ll also increase your home’s resale value.