Are you looking to install solar panels on your home in Kansas? You might wonder what your return on investment (ROI) will be.
You've probably heard that the cost of installing a solar panel system has become more affordable in recent years. That is thanks to federal tax credits and various state solar incentive programs.
But even though installing solar panels has become more affordable, you're still wondering what your savings are going to be over the lifetime of your system and how you can benefit from it.
Luckily, we're here to help break down the Kansas solar incentives for you. Keep reading to learn more.
What Are the Solar Incentives Available in Kansas?
This 2023, Kansas is offering many exciting solar incentives across the state. The incentives available depend on where you live, how much energy you use, and the type of system you are installing. Incentives include the Federal Solar Investment Tax Credit and Kansas Solar for Schools rebate program.
There are other local incentives available in certain areas. These include net metering, state tax credits, and property tax exemptions. Kansas also offers several solar loan programs that help homeowners finance their solar installations with low-interest rates.
These incentives make solar energy an excellent investment for Kansas homeowners in 2023.
Federal Solar Investment Tax Credit
Kansas adopted the Federal Solar Investment Tax Credit (ITC) in 2018. It allows solar owners to receive a 26% tax credit on the total cost of ownership for systems installed before December 31, 2023. The solar industry in Kansas shows no signs of slowing down, as the incentives related to the ITC continue to make solar technology more accessible to the public.
According to federal regulations, solar owners must own their system to take advantage of the 26% tax credit. Currently, there is up to a 30% Kansas state rebate that is offered to businesses that decide to go solar. This could potentially save commercial entities thousands of dollars in the long run.
Kansas Solar for Schools Rebate Program
This program offers a cash incentive of up to $750,000 to school districts in the state that decide to install solar energy systems. It helps increase enrollment in environmental and science-related courses.
It also effectively fosters the growth of the solar industry. It's because the grant offers educational opportunities for students interested in learning about renewable energy.
Lastly, public schools find it easier to shift to clean energy sources through Kansas solar rebates.
Net Metering
Net metering allows users to sell the excess energy they produce to their utility company. There are different net metering models throughout the state. Still, the main premise is that the amount of energy generated will be measured against the amount of energy used by the utility company.
The excess energy produced will appear on the utility bills as a 'credit.' This can be applied as a deduction from the user's monthly bill.
The net metering policy in Kansas has been put in place to ensure that solar energy users are not penalized for taking advantage of renewable energy sources. This policy will continue to positively incentivize renewable energy sources in Kansas for years to come.
State Tax Credits
The credit is a one-time state tax credit worth up to 25% of the project's cost, up to $10,000. Solar energy systems must be installed and operational to qualify for the credit.
The solar energy systems must also be certified for performance by an independent third party. Moreover, the system must be assigned to a Kansas taxpayer and remain operational for 3 years or longer.
Property Tax Exemptions
Solar systems installed after January 1, 2023, are exempted from property tax in Kansas. Homeowners can apply for a Homestead Exemption on their primary house.
It excludes the full value of their solar system from their property taxes. Business owners and landlords are also eligible for property tax exemptions.
Solar systems can also qualify for ad valorem tax exemptions based on their county, valuation district, or political subdivision. To be eligible for a property tax exemption, solar systems must be installed, operational, and documented after January 1, 2023.
Property owners must also apply for exemptions with their local assessor's office. Property tax exemptions are a great way to save money on investing in a solar system and are sure to be popular in Kansas in 2023.
Solar Loan Programs
Kansas offers low-cost loans for solar installations. They are provided through organizations such as solar loan servicers and other designated lenders or through banks and credit unions that partner with a solar loan servicer.
The loans are often interest-free and are available for up to 7 years. This allows homeowners to qualify for even more incentives.
Homeowners who choose to take a loan for installing solar are also eligible for balloon loan financing with no points, enabling fixed monthly payments over the life of the loan. As a bonus, you can claim state and federal tax credits for the full amount of the loan and solar system costs. This results in tremendous cost savings for the customer.
How Much is the Solar Power in Kansas?
The average solar power customer in Kansas can expect to pay around $2.14 per watt of energy produced from their solar system before any incentives. Most households will only need a 4-7kW solar system to completely meet their energy needs and end up powering their homes with solar energy in Kansas.
Why Choose Solar Power in Kansas?
Kansas is among the leading states for solar incentives. Not only will you be helping the environment by choosing to go green with solar power, but in Kansas, you can save money on your energy bill too.
Take advantage of the state's generous incentives. Enjoy clean energy for a fraction of the cost of traditional utilities.
Solar power is not only a reliable energy source but a smart investment that will provide long-term savings. Discover more here on how you can enjoy the benefits of going solar in Kansas.
Benefit from Kansas Solar Incentives Today
Solar energy is an increasingly attractive and cost-effective solution to our energy demands, and Kansas is one of the states at the forefront of investment. As a homeowner, you should take advantage of Kansas solar incentives now to reduce your electricity costs and gain other benefits.
Don't miss your chance to seize this opportunity - contact a local renewable energy provider today!
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