Kansas State Solar Power Rebates, Tax Credits, and Incentives
Soldier and a loved one overlooking Kansas
2012 Update
Kansas used to be the floor of an inland sea. That means the state is home to a phenomenal wealth of natural history. Not only that, Kansas is the breadbasket of America. Guess what you need to grow food? You guessed it: sun. With all those wide open spaces on the plains, Kansas is the perfect place to take advantage of clean solar power. Using renewable energy would protect the valuable natural history of the state and preserve its farmland too. Lately, the state legislature has been taking 1 step forward and 2 or 3 steps backward on clean power though. Here’s how the lawmakers have addressed renewable energy.
Kansas’ Renewables Portfolio Standard
A Renewables Portfolio Standard (“RPS”) is a law or other piece of regulation that mandates that a certain percentage of at state’s energy production comes from renewable resources by specified target dates. A strong RPS is important because it forces utility companies to promote conversion to renewable energy. That generally means free money for you in the form of solar power rebates and performance payments when you switch to solar.
Kansas is taking the legislative lead in the region, and unlike a lot of our neighbors, we have a pretty strong RPS in place here (yay us!) While most state RPS’s are based on total retail sales of electricity, the RPS here is based on total capacity for electricity generation. A utility’s total capacity is equal to the net capacity of all facilities the utility owns or leases. Each facility’s net capacity is determined by subtracting the power needed to operate a facility from that facility’s total electricity output.
Utilities must generate 20% of total electricity capacity from renewable resources by 2020. That target will be reached in phases. Currently 10% of electricity must come from renewable resources. That minimum raises to 15% is 2016, and reaches the final 20% in the beginning of 2020.
Solar Performance Payments and Rebates in Kansas
Unfortunately this is one of the few places that a solid RPS has not translated to utility-backed rebates or performance payments for residential solar power systems. There are currently no such incentives available here.
Kansas Solar Tax Credits
The legislature hasn’t been much help in picking up the slack on residential incentives; there are no tax credits available for installing a solar power system here either.
Kansas Solar Tax Exemptions
Fortunately the legislature has passed a property tax exemption. While this won’t save you any money upfront, it will save you thousands over the long haul. Installing a solar power system adds value to your home (we’ll get to how much value in just a minute). With the property tax exemption in place, you won’t have to pay a single extra penny in property taxes for that home value increase. That saves you thousands over the three decade life of your solar power system!
Unfortunately lawmakers have yet to pass a matching sales tax exemption. While you may not think about it on smaller purchases, not paying that extra 6.3% would save you a pretty nice chunk of change on your new solar power system.
Utility Prices in Kansas
Kansas pays an average of 11.61 cents per kilowatt-hour (“kwh”) of electricity. That’s right around the national average of 11.43 cents/kwh. We know you like the cheap electricity, but the long term costs of those prices are through the roof. All that cheap electricity is produced by burning fossil fuels. Millions upon millons of tons of greenhouse-gas producing, ozone killing fossil fuels. When the astronomical environmental costs start to mount, monthly electricity bills are inevitably going to rise as well. And that happens you’re going to feel pretty darn smart –we’re talking Einstein level smart– for all that cash you’re saving with your clean efficient solar power system.
Kansas Net Metering and Interconnection
Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume, and to make sure you get credit for any surplus. Kansas requires all investor-owned utilities to offer net metering. All monthly surplus energy production is applied as a credit to your next bill at the full retail rate. Unfortunately the utility will not cut you a check for long-term surplus. At the end of every calendar year all unused surplus credits will be granted back to the utility without compensation. Net metering is available for residential systems up to 25kw in capacity on a first-come first-serve basis until net-metered systems reach a total of 1% of a utility’s peak electricity demand during the previous year.
That’s a pretty solid net metering program. Overall we gave Kansas a “B” in this category only because of the system limits that prevent all customers from meeting on-site generation needs, and because electric cooperatives and municipal utilities are currently exempt from the requirement to offer net metering at all. We’d like to see the net metering program expanded to cover all utility’s and every-sized customer. But all in all the regulations in place are a solid start.
Legislators should use that solid foundation to expand interconnection procedures as well. Currently there are virtually no interconnection procedures in place here beyond basic safety requirements addressed in the net metering law. While lawmakers did set rules for additional liability insurance (prohibiting utilities from requiring it) and external disconnect switches (allowing utilities to require them, despite their redundancy), very little else is addressed. Interconnection could be vastly improved here by adopting the Interstate Renewable Energy Council’s standard procedures.
5kW Example Return on Investment in Kansas
Installing a typical 5kW solar system in Kansas should start at about $25,000. Don’t worry – even without state incentives, you’re still going to save a lot, just in the first year.
- Since the feds calculate the federal solar tax credit based on actual out of pocket costs, no state solar power rebates or other incentives mean a bigger federal tax credit. Subtract $7,500 (30% of $25,000) for a new price of $17,500.
- After the federal solar tax credit we subtract your first year’s energy savings, which we estimate to be about $770. That brings your cost after the first year to $16,730.
- With a conservative estimate for the future rise of electricity prices, you can expect your new solar power system to pay for itself in about 15 years. Even with that somewhat slower payback time frame, you can still expect to get another 15 years of profits out of your solar power system. We estimate those profits to be more than 20 thousand through 2036!
- In addition to those direct wallet-fattening savings, you also increased your home value by $15,395!
- And last but not least, you’ve created some green for the earth as well as yourself by not using all that fossil-fuel backed electricity. In fact, the fossil-fuel energy you’re not using is the carbon-saving equivalent of planting 117 trees a year, every year your solar power system is humming.
We used numbers for the Kansas City area, where folks get a little bit less sun than the western part of the state. Payback there should be a little bit faster. Even if you are in Kansas City however, keep in mind that these numbers are estimates. Your home is unique and how much power you generate and how much money you save depends on that uniqueness. The best way to find out how much cash switching to solar can save you is to get one of our free quotes, and an expert installer in your area can draw up a home-specific estimate for you. Your quote is 100% free (yes, that’s right, 100% free) and you can get as many of them as that smart shopper in you desires!
Kansas Solar Consensus
With all that space in Kansas, solar energy could really make a difference in the future of the state. If only lawmakers could see beyond their own noses and take advantage of this abundant renewable resource. Some work has been done, and at least the legislature has considered the issue from time to time. Unfortunately, the bills that are passed often end up watering down or completely removing any progress on clean power generation. In short, Topeka needs to take solar energy much more seriously. The RPS and property tax incentive are a start, but they’re only enough to earn The Sunflower State one bump up to a “D” for now.
I am writing a paper on solar energy in southeast kansas if anyone has any good information that could help it would be great
Net metering is bogus. The “new” Kansas law is outdated and an appeasement of Westar.
There is a guy on ebay selling 3kw grid tie systems made in USA for 15K
You will not get more than $500 a year in savings with a 3kw system on a house unless you can track the sun, that requires land.
If you have land you will get 4x cost/watt benefit for installing a windmill.
i think this is the BEST website ever!!!! i get everything i need just by looking up stuff!!!!!!!!
Want to know information about Kansas energy… http://www.kansasenergy.org/wind_projects.htm
This show the currnet in processed and proposed wind energy ongoing here in Kansas.
“A 3KW in Kansas cost $49,500″ This is pure insanity to propogate this type of misinformation. That equates to $16.50 a watt. No wonder they aren’t investing in solar. You can get systems installed for about $6-$8 a watt. 3KW system should cost $15,000-$22,000 depending on who installs it and what equipment you choose. I am a Georgia based solar company and we get competitive pricing. Maybe I should set up a branch in Kansas and provide the fine people of that state with the service they deserve. Solar power rocks please debunk this $49,500 for 3KW myth. Time to farm the sun like your sunflowers do. Good luck
In just about all the information I have read on renewable energy and indicators of potential, Kansas always pops in my head. Kansas is the perfect environment for wind, solar, bio-fuel production and food for human energy. Kansas seems like the epicenter for renewable energy production to me.
Kansas Solar Electric Co~operatives, Inc.
Non-profit Founded2005 Incorporated 4/2008
Issued 1 Million N/P Shares $10 Each
PhaseI Demonstration 10,000 SF @ KS County
Phase II Foundation 1,000 MWp BI-PV Solar in KS by 2022 $3 Billion
Phase III Manage+Maintain+Monitor 2010-72
GOALS ARE TO INCREASE:
Homeland Security
Emergency Preparedness
Environmental Integrity
BI-PV Solar Expertise
Provide Over 1,000 Green Energy Jobs 50Yrs
Visit Website – Read Annual Report 2009
http://www.geocities.com/Solar_Electric_Cooperatives
Help Support K-SEC Intervention Before
Kansas Corporation Commission [KCC]
Have you seen KCC’s on-line oil well permit site: https://solar.kgs.ku.edu/
Please help redirect misrepresentation and encourage KCC to change SOLAR acronym for coal business to SOAR. See K-SEC’s comments filed with KCC Oct 20, 2009.
UPDATE: Notice new website: http://www.BI-PVSolarArchitecture.com
K-SEC does not charge for our solar systems. Our motto is “1,000 MWp BI-PV Solar At A Time”! That translates to approximately 75 million SF of solar roofing. 75% of K-SEC’s projects will be commercial and 25% will be residential.
Consider how little installed solar energy generation capacity there presently is in the United States being somewhere between the 2009 level of 500 MWp to around 750 MWp. That translates to one small coal plant. The German States have an installed solar energy capacity of 3.5 GWp with only 4 sun hours a day. That is seven times the installed solar energy capacity we have in the U.S..
These facts amazed me and inspired me to research the forces suppressing solar energy in the United States. The culprit I found was momentum. Momentum is the problem and momentum is the solution. If we are to have a meaningful amount of solar energy capacity, we must plan for deployment of 1,000 MWp At A Time. We are organizing an effort to train enough installation techs in Kansas to assure that 735 installation techs are working to install 2,000 SF BI-PV Solar a week in every county of Kansas for ten years. Number crunching takes us to a new level.
K-SEC leases consumer rooftops. Our goal is to produce, install, monitor, maintain and manage our solar systems for fifty years. They will then be renovated or recycled. The consumer continues to pay their monthly electric bill. K-SEC sells our solar energy wholesale. Approximately 70% of the electricity we produce is consumed at the generation site thereby avoiding the typical distribution loss that is generally around 35% of the electricity generated.
Many consumers insist they want to own a solar system. For fifteen years I marketed solar systems and provided energy audits for consumers. The many regulatory hurdles, up-front payment of 20 to 50 years of electricity and the demands of monitoring and managing a solar system were more than most consumers realistically could or would tackle when it came to signing on the dotted line. When Clint Eastwood was not paid his solar incentives of 50% rebate and net metering, I asked myself, “Who will they pay?” Mr. Eastwood called a meeting with Governor Davis and was finally paid, but most people do not have the influence he has to call a meeting with the Governor of the state of California.
The challenge of The K-SEC Model is that the program starts as a grassroots effort. People have to get involved, K-SEC is sort of like training wheels when you are leaning to ride a bike. Solyndra could not survive without an adequate industry infrastructure in place. The Kansas Corporation has instructed us to develop a database for our Phase I Demonstration and to form our business organization to qualify for bond financing with ratepayer revenue backing in place.
Public education must be our first goal. K-SEC is presently building the K-SEC Mobil Solar Room Exhibit to visit each county in Kansas this year (2013). If you want to get involved, visit the K-SEC website, submit your home, business, school or church rooftop on our Submit A Roof form. K-SEC is a non-profit deployment acceleration program. Become a volunteer, purchase our non-profit stock for $10 a share and/or become a board member. K-SEC is building the infrastructure for major BI-PV Solar industry commerce in Kansas. Be a part of the future, today!
Just one question since I’m just learning about solar panels and I live in Kansas. We do get a lot of sun and of course, wind.
unfortunately, we have severe weather as you know. Does insurance cover these or I’m assumiung you have to pay for insurance and also, can they take tennis ball size hail a few times a year? what about 80-100 mile an hour winds and of course, what about the winds from tornados? In other words, how much beating can the solar panels take and are there systems to help hold them down in high winds?
Is this possibly why many people do not purchase solar panels here in Kansas?
I’m seriously asking this because again, I’m just learning about them. thank you.
Solar rooftops are insured as part of the home or in some cases as an appliance.
Bio-fuels are a waste of time. They are not sustainable and if considered at the global scale, really do much more harm than good.
Can a Homeowner install the solar panels? Certainly a professional is needed to install a converter and hook it up to the grid. Is a permit required? Why is it so expensive? It seems that all of the natural resources(wind & sun)are in place. Seems we are being delayed by the quest for $$$$$$$$$ rather than saving energy costs.
Clayton, a good solar installer should recognize there is a mistake in the example provided. I think there is a mistake on the example system. My guess is that it is talking about a 7 kW system.
I am a business man. I.m looking for a new business and solar sounds promising. I’m a general contractor and I’m interested in selling and installing solar shingles or other solar products. any help will be appreciated
bbird contact me on face book if your in the Wichita area, we are just starting and have wholesale accounts already in place for all equipment needed. Solar shingles are the plan for specialization.
I’m from Illinois, planning to move to Kansas. Illinois has one of the best programs for Solar Power. I plan on installing Solar Panels in my new house in Kansas, I just wish Kansas had a program that would help the residents like many other states. Get With It Kansas!!
To b bird and D Clayton, we should start a complete do it yourself store for home solar power.bmaster59@hotmail.com
We are building a home and the developer/HOA will not allow any type of solar installation. His reasoning is that it is unattractive and reduces property values/resales. This is in a development with average home prices of over $500k. Any ideas on how to make the right to solar power actionable? We had already broken ground when we informed that solar was out. Its hard to believe that Kansas is do backwards when it comes to renewable energy.
Can anyone recommend some solar PV installers who would bid a small 5 KW system in Rush County (Hays/Great Bend area)? My father is interested in installing a system for his farm and would like it completed by Dec. 31 if possible. Any recommendations for quality, reasonably priced installers would be appreciated. Thanks!
To Brenda – I had panels up and we had tennis ball sized hail or even bigger and the panels handled it ok, although almost every roof in the area didn’t and even my mailbox had holes in it. Previously we had over 90 mile per hour wind that managed to suck the panels out of their housing and they hit the ground, breaking the back of one. Upon reconnecting them they worked fine. I had mine insured, but I think they are probably covered under house insurance also, but check with insurance on that.
Hello,
I started a solar business in Wichita Kansas early this year. Due to the lack of interests and out of capital, I moved. I am a license contractor, and solar trained by SEI. I have whole account with multiple suppliers, especially Lumos and Magnum energy. I am specialize in battery backup system. I can help build a 3KW system for as little as $5/watt or I can show you how to do it yourself as long as you buy your equipment from me. I will stay with you during the entire installation process and beyond 10+ yrs. Please let me know davyechan@gmail.com. Offgrid is the way to go.
I am interested in solar energy and live in Kansas but how do you know how big of a system you need for your home, i.e. 3k, 7k, etc. and how much savings you will get versus the cost of the panels, etc.
Davy, Im sorry your solar business diddnt survive in Wichita. The common thought is in this economy in Kansas is a solar company must have res wind and be willing to travel.
& Patrick unless i am mistaken it is against the law for a HOA to deny a renewable energy installation. Take it to the city council first. BUT FIGHT! We need all the renewable energy we can get!
Anyone that’s doing business in Wichita, KS please contact me. I’m heading up a green initiative in one of the business districts the members of which have an interest in getting bids for rooftop solar.
thanks,
Rick
rikster61201@yahoo.com
I have 160 acres of farm land in southwestern KS doing nothing. I currently live in Germany and watch neighbor by neighbor put solar panels on their houses and tie them into the grids. They pay no electricity bills and are refunded for the amount of energy they produce and put back in the grid. There is solar farms that go for miles along the autobahns and they still love their windmills. What would it take to fill my land with solar panels and who wants to help with it?
Thanks
JJ
jj.johnx5@gmail.com