2022 Kansas Solar Incentives, Tax Credits, Rebates (And More)
Here’s a quick look at the solar incentives in Kansas:
- Federal Solar Tax Credit
- 10-Year Property Tax Exemption
- Net Metering
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Solar panel systems have never been more affordable than they are right now, but the average cost to go solar in Kansas is still $23,310. Unfortunately, this is prohibitively expensive for many homeowners, so most residents look for ways to reduce costs and save money on their installations and equipment.
There are some solar incentives available in Kansas that will make solar more accessible and more appealing. However, according to the Solar Energy Industries Association (SEIA), Kansas is in the bottom 20% of states that are solar-friendly and promote solar conversions, so there are relatively few incentives available.1 We’ll discuss all of the solar tax credits and benefits available in Kansas below.
Disclaimer: This article is for informational purposes only. It should not be relied on for and is not intended to provide accounting, legal or tax advice.
Current Solar Rebates, Tax Credits and Incentive Programs in Kansas
The table below provides some basic information for the solar incentives for Kansas residents. We’ll provide some additional information for each incentive further down in this article as well.
|Kansas Solar Incentive||Description|
|Federal Solar Tax Credit||The federal tax credit is a credit toward your federal taxes owed for the year you turn on your solar energy system. The credit is currently worth 26% of your total solar system cost.2 In Kansas, this comes out to an amount of $6,061 on average.|
|Renewable Energy Property Tax Exemption||Kansas’s Renewable Energy Property Tax Exemption prevents you from having to pay additional property taxes when your home’s assessed value increases as a result of installing solar for 10 years.3 This could amount to thousands of dollars.|
|Net Metering||Net metering is a billing policy that helps homeowners reduce or even eliminate their energy bills. Kansas has a fairly standard net metering program, which we’ll discuss in detail below.|
Kansas Solar Tax Credit
In addition to the federal solar tax credit, which we’ll discuss below, many states also provide residents with a state solar tax credit. Unfortunately, Kansas does not have a state tax credit at this time, and it’s unclear whether one will be available in the future.
Kansas is ranked 44th in the country by the SEIA for solar friendliness, so the incentives available above and beyond the federal tax credit and net metering are few and far between.4
This is due, in part, to the popularity of wind power in the Sunflower State. Kansas established a Renewable Portfolio Standard (RPS), which set a goal of 20% of all energy production in the state coming from renewable energy sources by 2020. While solar was included in these sources, wind power production quickly met the RPS goal, so solar took a back seat in terms of incentives and promotion.
Other Kansas Solar Incentives
Kansas homeowners have a surprisingly limited number of incentives available when it comes to installing solar panel systems. Many states that lack solar incentives at least have incentives for energy-efficiency upgrades, but unfortunately, Kansas doesn’t offer these, either. Below are the only incentives offered to Kansas homeowners on a state level:
- 10-year property tax exemption
- Net metering
Kansas Solar Property Tax Exemption
While Kansas doesn’t go out of its way to promote solar conversions, it at least minimizes the potential downside of installing solar with its property tax exemption. Most home improvements that increase the value of your home will also cause your property taxes to go up. Without legislation to prevent this, many homeowners would decide against solar power as a means of clean energy production.
The property tax exemption in Kansas prevents your non-educational property taxes from increasing for 10 years as a result of installing a solar system. When you go solar, you’ll enjoy the benefit of a boosted property value without the downside of a spike in property taxes for a decade.
Many other states also include a sales tax exemption that prevents you from having to pay sales tax on solar equipment, but this benefit is not available in Kansas.
Net Metering in Kansas
Net metering is a billing policy offered by electric companies across the country, and many states require that it be offered to homeowners. Nearly all residential solar systems allow energy to flow to the local power grid via interconnection. When your panels fail to produce sufficient energy — like on cloudy days — the grid will supply the needed power to your home. When you overproduce, your system will send the excess to the grid in exchange for credits from your utility company. These credits can be used toward your future power bills.
Kansas mandates that all investor-owned utilities (IOUs) provide the opportunity for net metering to customers. Some electric cooperatives and public utilities also offer net metering even though they aren’t required to do so. For customers of IOUs — including Westar Energy, Empire District Electric and Kansas City Power & Light — the value of the credits, or the rate at which the utility provider “buys back” your overproduction, can vary. Check with your electric company for details.
Unfortunately, Kansas doesn’t have any local solar incentives beyond the property tax exemption discussed above. This is, of course, subject to change, especially as solar becomes more popular in Kansas. You can check back here for updates on policies and offerings.
Federal Solar Tax Credit
As is the case with many states, the federal solar investment tax credit (ITC) is the most beneficial incentive available to homeowners in Kansas, and it has statewide eligibility. This incentive, offered by the federal government, is a credit toward your federal income taxes owed for the year in which your solar power system is installed and commissioned. In 2022, the tax credit is for 26% of your entire PV system cost. Given the average cost to go solar in Kansas of $23,310, the credit will be for an average of $6,061.
It’s important to note that the federal tax credit is set to drop to 22% in 2023, which would bring the average credit in Kansas down from $6,061 to $5,128. The credit is set to expire for residential systems in 2024, so it will no longer be available unless Congress renews it. As such, installing a photovoltaic system as soon as possible in Kansas is recommended to take full advantage of the credit.
FAQ: Kansas Solar Incentives
Despite the fact that solar energy is still gaining traction in Kansas, the EcoWatch team still gets questions regularly from Kansas residents about going solar and how to save money in the process. Below are some of the questions we see most frequently, along with our responses.
The federal solar tax credit is available to all Kansas residents, although it’s scheduled to decrease in value in 2023 and will no longer be available for home systems in 2024. However, Kansas lacks a state tax incentive, so the federal credit is the only one available at the moment.
It’s unlikely. Wind power has very much taken the spotlight in terms of renewable energy sources in Kansas, and solar is just starting to gain traction. As more homeowners turn to solar conversions for energy production, incentives could start to pop up. For now, though, there are no solar incentives on a state level in Kansas aside from the 10-year property tax exemption and the net metering policy.
Unfortunately, there are no rebate programs available to help with the upfront cost of solar power in Kansas. Kansas is one of the few states that doesn’t even offer rebates for other energy-efficiency upgrades. There could be rebates established in the future, but the timeline and specifics are unknown at this time.
Not for the first 10 years. Most home improvements that increase your property value will also cause a bump in property taxes. While solar panels will make your home more valuable, Kansas’s property tax exemption prevents the bump in value from increasing your property taxes for a decade after installation.