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If you’re exploring solar energy options in Kansas, understanding the available incentives can be crucial for maximizing your investment. Kansas offers a range of programs and benefits designed to support solar adoption for both homeowners and businesses. In this guide, we’ll break down the key solar incentives in Kansas, detailing how you can take advantage of them to make your solar transition as smooth and cost-effective as possible. Whether you’re considering installing solar panels for the first time or looking to optimize your existing system, this overview will provide the essential information you need to navigate the solar landscape in the Sunflower State.
The Residential Clean Energy Credit
The Residential Clean Energy Credit, previously known as the Federal Investment Tax Credit (ITC), can reduce the cost of your solar panel system by 30%. This incentive covers the entire system, including equipment, labor, permitting, and sales tax.
To claim this incentive, you need to purchase your system with cash or a solar loan, as leasing does not qualify for the ITC. You must have a sufficient federal tax liability to use the credit, though any unused portion can be rolled over year-to-year until the ITC expires at the end of 2034. Direct payment of the ITC is only available to tax-exempt entities, such as nonprofit organizations.
Kansas Solar Property Tax Exemption
Kansas offers a property tax exemption for projects producing electricity from renewable sources, including wind, solar, photovoltaic, biomass, hydropower, geothermal and landfill gas resources. The exemption applies to all property actually and regularly used in the generation of electricity from renewable sources, whether it is an industrial, commercial, utility or personal application.
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Net Metering
Under current Kansas net metering law, solar production is recorded throughout the month. If a customer generates more kilowatt-hours (kWh) than they use, they are paid for the excess energy at the utility’s “system average cost” (wholesale rate).
This means you receive a much lower rate than retail if your panels generate more than you need over the course of a month. Consequently, Kansas residents might prefer smaller solar panel installations that align with their usage during the sunniest months to avoid earning less for excess kilowatt-hours.
Solar for All
Based in Ohio, the Industrial Heartland Solar Coalition brings together 31 communities across eight states, spanning from the Midwest to the rustbelt. Led by Growth Opportunity Partners (Growth Opps), the coalition is committed to propelling a just and clean energy transition in America’s industrial heartland communities. Its Solar for All (SFA) program, centrally managed by Growth Opps, is locally guided and implemented by 18 coalition members. Through our SFA initiative, the coalition aims to deliver energy savings to households, reduce greenhouse gas emissions, and provide training through solar workforce development programs. By leveraging tax credits and SFA grant funds, our coalition seeks to reach low- and moderate-income households, installing residential rooftop solar and more.
Disclaimer
The information provided herein is for informational purposes only and is accurate as of the time of publication. Please be aware that the solar energy landscape, including technology, regulations, incentives, and market conditions, changes frequently. Therefore, it is essential to consult with qualified experts and professionals before making any decisions regarding solar energy installations or investments. This will ensure that you receive the most current and applicable advice tailored to your specific circumstances.
