Hello Kansas resident! With ample sunlight available across much of the state, you might think Kansas would be a leader in solar energy adoption. However, the reality is that Kansas ranked 45th nationally for solar production in 2022. Despite the untapped potential, there are still ways for Kansas homeowners like you to save money by going solar if you know where to look.
Overview of Solar Savings Opportunities in Kansas
While upfront system costs have dropped over 70% in the last decade, solar panels still represent a major investment for homeowners. Making solar affordable in Kansas requires maximizing every possible incentive. Here‘s a high-level snapshot:
- Federal Tax Credit – 30% credit on solar system purchase, phasing down soon
- Net Metering – Bill credits for excess solar power at low wholesale rates
- Property Tax Exemption – Shields increased property value from solar install
Now let‘s explore the details around each opportunity to go solar for less in Kansas.
Leveraging the Federal Solar Tax Credit
With weak state support for renewable energy incentives in Kansas, the bright spot is that federal solar tax credits are still widely accessible to residents installing solar panels.
The federal investment tax credit allows you to deduct 26% of the cost of a home solar system from your federal income taxes in 2023. This credit steps down to 22% in 2024 before expiring for residential projects in 2035.
For example, on a typical 6 kW solar panel system costing around $14,340 installed, the current federal credit would cut your tax bill by $4,122. Over the 20+ year lifespan of a solar array in Kansas, that alone represents over $20,000 in energy cost savings!
| System Size | Cost | Federal Tax Credit Amount (30%) |
| 6 kW | $14,340 | $4,302 |
To qualify for this generous credit, you must own your solar panel system rather than leasing it. Both equipment and installation costs apply. If you don’t have enough tax liability this year, you can carry forward any unused credit up to 5 years out.
Minimal Savings From Net Metering in Kansas
Like many states, Kansas has implemented net metering rules requiring utilities to provide bill credits when your solar panels generate more electricity than you use on-site. Unfortunately, the wholesale rate they pay is exceptionally meager here.
Kansas homeowners only earn between 3 to 4 cents per kWh through net metering credits. At the typical household retail electricity rate around 13 cents per kWh, that means losing out on nearly 75% of the value. Last year, the average Kansas solar panel owner earned less than $30 from net metering surplus power annually.
So while a nice perk, net metering won‘t make ‘fueling‘ your solar panels profitable. Focus instead on offsetting your highest-value electric usage.
Property Tax Exemption for Solar Installations
One helpful solar incentive Kansas offers is exempting solar panel systems from increased property tax assessments. Normally, investing over $10,000 into new home equipment would trigger a higher valuation and thus property tax hike.
But under Kansas Statute 79-201x, installing solar panels cannot cause your property taxes to rise. Over the 20+ year lifespan of a typical system, this tax shield could save Kansas solar owners over $5,000 compared to being taxed for the upgrade value.
Combined with the 30% federal tax credit, property tax exemptions give Kansas solar panels a strong economic case based on incentives alone!
Recommendations for Kansas Homeowners
While upfront incentives are invaluable, I always recommend Kansas residents consider the long-term bill savings from solar too. Project out your system payback period and lifetime earnings using solar calculators before moving forward.
Here are a few other tips:
- Act soon before the 30% federal tax credit starts stepping down.
- Purchase rather than lease your system to maximize tax benefits.
- Calculate bill offset from solar closely with your installer‘s guidance.
Even lacking strong state-level solar incentives, Kansas residents can still benefit greatly from federal tax credits and property tax exemptions. Reach out to local solar installers to explore your custom savings potential!
