Kansas, known for its expansive plains and agricultural heritage, is also a state with significant potential for solar energy with approximately 225 sunny days annually, providing a substantial amount of sunlight for solar energy initiatives. Despite a historical lack of strong support for renewable energy, Kansas has begun to offer incentives for homeowners considering the switch to solar power. These incentives, coupled with the state’s abundant sunshine, make solar energy an increasingly attractive option for Kansans.
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Federal Solar Investment Tax Credit (ITC)
The most substantial incentive for Kansas residents is the Federal Solar Investment Tax Credit (ITC), which provides a 30% tax credit on the cost of solar panel systems, including equipment, labor, and permitting. This credit is a major financial benefit for those installing solar systems before the end of 2032.
Net Energy Metering in Kansas
Net metering in Kansas allows homeowners to sell surplus solar energy back to the grid. However, the rate at which utilities purchase this excess energy is lower than the retail rate. Under current law, if a customer generates more kilowatt-hours (kWh) than they use in a month, they’ll be paid for the excess energy at the utility’s “system average cost” or wholesale rate, which is about 2.1 cents per kWh, compared to 11.3 cents/kWh retail.
Property Tax Exemption for Solar Installations
Kansas offers a property tax exemption for the added value that a solar installation brings to your home. This incentive doesn’t save money upfront, but over time, it can result in significant savings, as homeowners won’t have to pay extra property taxes for the home value increase caused by installing a solar power system.
The Affordability of Solar in Kansas
The typical upfront cost for solar conversion in Kansas stands at around $23,310. This number is based on the average cost per watt for solar equipment ($2.59 in Kansas) and the average solar system size (9 kilowatts or kW) required to offset typical utility bills in the area.
While Kansas may not have the same level of incentives as some other states, the available federal tax credit, net metering, and property tax exemption still make solar energy a viable and financially beneficial option for residents. As the state continues to explore renewable energy options, the future of solar power in Kansas looks promising, offering a sustainable and cost-efficient energy solution for its citizens.
Further information and programs can be found at the Programs.Dsireusa.org
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