Solar Power Rebates, Tax Credits and Solar Panel Incentives in Kansas; 2012 Update
Kansas has made some important steps in the last year or so in that they have expanded upon their original Renewable Portfolio Standard.
Kansas RPS or Renewable Portfolio Standard
The Kansas Renewable Portfolio Standard (RPS) calls for 20% of power to be generated by renewable power supplies by 2020. Interim targets have been set at 2011 - 2015: 10%, 2016 - 2019: 15% and 2020 onward: 20% This RPS is more complicated than most that I have seen; it seems geared towards larger commercial installations rather than residential applications. So this is another example of the importance of getting advice from local solar professionals.
Federal Tax Credit
The single most significant financial incentive for your solar power system in Kansas is the same Federal Tax Credit that applies right across the USA. This gives you a credit on your Federal Tax bill equivalent to 30% of the cost of your solar system For more information on this visit out page "The 30% federal tax credit for residential solar power systems" Because this is a tax credit you get the benefit of this when you do your next federal tax return, rather than getting a cheque on the day of installation. Still, it has a real value if you are in a position where you are paying annual federal income tax equivalent to 30% or more of the value of your solar panel system.
Net Metering Kansas seems to have a more complicated than need be Net metering system, the rules allow residential systems up to 25 kilowatts (kW) and non-residential systems up to 200 kW. A net-metered system must be appropriately sized so as not to exceed expected load. If a customer-generator produces more electricity than is consumed during a monthly period, the net excess generation (NEG) will be carried forward to the next month at the full retail rate. Any NEG remaining in the customer's account at the end of the calendar year will be granted to the utility. So its important as a residential customer to get the right sized system or you will be making free power for the power companies to sell to someone else. Fill out the form to get some quotes.
Kansas State Tax Exemptions and State Tax Credits
Your solar power system is 100% exempt from property tax, this is good news.
Kansas Loans Program
There is a program currently running that allows residents by borrow up to a maximum $20,000 for approved renewable energy systems such as Solar PV. There is quite a bit to the rules of the program and as always these programs can run out of funding very quickly. Homeowners may borrow up to $20,000 and small businesses may borrow up to $30,000, but monthly loan repayments may not exceed the estimated monthly energy savings. Participants will have up to 15 years to repay the loan. Participants must first have an energy audit performed by a program qualified auditor to identify the best efficiency improvements to pursue. Participants are responsible for paying for the energy audit, but the cost can be rolled into the loan amount. These programs are complicated so it would be best for anyone interested to seek information directly from the program itself.
Kansas Solar Incentives and investment case: Summary April 2012
Kansas has a long way to go if it wants to catch up with some of the other states. It's not all bad news there is a RPS in place but it doesn't really go hard enough, hopefully that will change in the future. The Net Metering program in Kansas is overly complicated and seems to really cater for large scale systems rather than smaller residential installs, it is a lot better than nothing though. In most cases if you are still reading this you are interested in going down the solar road, click "here" and we will put you in touch with local solar professionals. Remember, Warren Buffet's compound annual return on investment over 50 years is only around 20% and with a solar power system you are likely to exceed this within only 5-6 years. From then on the percentage return you get each year just goes up and up as power prices go up and up over the next 30 years