Solar Panels

In a Nutshell

Solar panels generate electricity using the nearly limitless supply of energy from the sun. Panels can be installed in large arrays or on rooftops/walls of homes and buildings. Solar panels have become more affordable over time, and new funding and incentives included in the 2022 Inflation Reduction Act make solar more affordable than ever.


Practical Solution

The “How To”The “How To”

Making a building as energy efficient as possible is a good first step in preparing for solar. In order to make a building more energy efficient, you can start with a Home Energy Audit. You can also find more resources in the Energy Efficiency tool in the OneSTL Toolkit. 

When considering solar, it is important to note that the 2022 Inflation Reduction Act (IRA) made tax credits available that can reduce the costs of purchasing and installing solar panels and battery storage by 30%, through 2032. For the first time, governments, schools, nonprofits, and other tax-exempt entities can also take advantage of clean energy tax credits. See the Dollars & Cents tab for more information. 

If rooftop solar is not an option, Ameren MO offers a community solar program that customers can subscribe to. In Illinois, the Illinois Solar for All program provides opportunities for income-eligible homeowners and renters to subsribe to community solar. Participants are guaranteed to see savings on their energy bills. 

Grow Solar St. Louis and Grow Solar Metro East are public education and group buy purchasing programs for residential and small commercial solar. They help connect consumers with more information about solar and secure significant discounts through the group buy program.

Planning & ZoningPlanning & Zoning

Solar Ready Ordinances

In 2020, the City of St. Louis became the first city in the Midwest to pass a solar ready ordinance covering both commercial and residential construction. For buildings that are five stories or less, the ordinance requires roofs to be sturdy enough to receive solar arrays and requires a conduit to an electric service panel with dedicated space labeled "For Future Solar Electric."

Streamlined Solar Permitting

Streamlining the solar permitting process can help reduce the 'soft costs' of solar, which are costs associated with getting the project approved. Solsmart is a program that helps local governments reduce solar energy barriers. The City of Clayton has received the Silver Solsmart designation. As part of the process, the city reviewed local zoning requirements, adopted nationally recognized best practices to advance solar market growth by cutting red tape and improving local solar market conditions, and trained staff on permitting and inspection best practices. The City of Collinsville's municipal code requires native plants to be grown under commercial solar installations, as an additional environmental benefit.

Dollars & CentsDollars & Cents

Ultimately, solar energy investments pay for themselves. This online tool can assist in estimating cost savings.

However, incentives are available to further reduce the cost of solar. Through the year 2032, federal tax credits are available that can reduce the costs of purchasing and installing solar panels and battery storage by 30%. Credits and rebates are also available for many energy efficient upgrades, such as heat pumps and electric vehicles. Homeowners and renters can click here to find out which incentives they may qualify for. In Illinois, a Solar Renewable Energy Credit program provides additional incentives, which can cover an additional 20-35% of a solar project.

For the first time, governments, schools, nonprofits, and other tax-exempt entities can also take advantage of clean energy tax credits. Find out more about how tax-exempt entities can use clean energy tax credits to reduce the cost of solar from this user guide. Lawyers for Good Government offers a Clean Energy Tax Nagivator tool to assist tax-exempt entities in using clean energy tax credits for their potential, planned, or completed projects.

Additional resources include the Missouri Department of Natural Resources website, which offers information on available incentives for renewable energy, including solar. 

Measuring SuccessMeasuring Success

Once solar panels are installed, property owners will immediately see a drop in their utility bills. Other benefits include cleaner and more environmentally-friendly energy production.

Solar panels increase the percent of energy that municipalities receive from renewable energy, also know as energy diversity. Energy Diversity is one of the performance measures OneSTL is measuring as part of our 'Efficient' goal for our region.