Federal and Missouri Rebates for Whole-Home Backup Batteries

Federal and Missouri State Rebates for Whole-Home Backup Batteries

Installing a whole-home backup battery can be a significant investment, but there are various federal and state incentives available to help offset the costs. Here’s a detailed overview of the key rebates and incentives for homeowners in Missouri.

Federal Incentives

Federal Investment Tax Credit (ITC):

• Overview: Under the Inflation Reduction Act (IRA), homeowners can claim a 30% tax credit on the cost of battery storage systems, including installation. This credit applies to batteries installed after December 31, 2022, and is effective until January 1, 2033.

• Eligibility: The battery must have a capacity of at least 3 kilowatt-hours (kWh) and be installed in connection with a dwelling unit used as a residence by the taxpayer. This includes standalone batteries not paired with solar panels.

• Benefits: There is no cap on the amount you can claim, and the credit covers labor costs, permitting fees, inspection costs, developer fees, and balance-of-system equipment (e.g., wiring, inverters).

• Application: Homeowners must complete IRS Form 5695 and submit it with their federal tax return. The credit is non-refundable, meaning it can reduce your federal tax liability but will not result in a direct refund if the credit exceeds your tax bill. Any unused portion of the credit can be carried forward to future tax years​ 

Missouri State Incentives

Property Tax Exemption:

• Missouri offers a property tax exemption for the added value that solar and battery systems bring to a home. This means that installing a backup battery system will not increase your property taxes, making the investment more attractive for homeowners.

Utility Rebates:

• Some Missouri utility companies may offer additional rebates for installing battery storage systems. These rebates can vary, so it's best to check with your local utility provider for specific programs and incentives available to you. Additionally, the Database of State Incentives for Renewables & Efficiency (DSIRE) provides up-to-date information on available incentives in Missouri​.

How to Claim These Incentives

Federal ITC:

1. Install Your System: Ensure your battery system meets the requirements (minimum capacity of 3 kWh).

2. Save Your Documentation: Keep all receipts and documentation provided by your installer.

3. File IRS Form 5695: Use this form when you file your federal taxes to claim the ITC.

Missouri State Credits:

1. Consult with a Tax Professional: State tax incentives can be complex, so it's advisable to consult with a tax professional to ensure you maximize your credits.

2. Submit Necessary Forms: Follow the state's guidelines for claiming the property tax exemption and any applicable utility rebates.

Bottom Line

By leveraging these federal and state incentives, Missouri homeowners can significantly reduce the upfront costs of installing a whole-home backup battery system. Rebates for Whole-Home Backup Batteries

These incentives not only make such investments more affordable but also enhance energy independence and resilience against power outages. For the latest information on available incentives, consult resources like EnergySage and DSIRE​.