Kansas solar incentives and tax credits

Financial resources for going solar in 2024

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After the full federal solar investment tax credit (ITC), the residential solar panel system is $16,317 in Kansas, which is cheaper than in many other states. Kansas also has a property tax incentive to make going solar even more appealing for homeowners in the state.


Key insights

  • The average federal solar investment tax credit value is $6,993 in Kansas.
  • A solar property tax exemption means that your property tax bill won’t go up if your solar panels increase the value of your home.
  • On average, Kansas homeowners with solar panels get estimated net savings of $21,455 over 25 years.

Solar incentives in Kansas

The federal solar investment tax credit (ITC) is the biggest factor in reducing the cost of going solar in Kansas. If you install a residential solar panel system by the end of 2032, you will receive a federal income tax credit equal to 30% of the system's total cost, including equipment, labor and permits.

The federal solar investment tax credit drops to 26% in 2033 and 22% in 2034.

For example, the average system in Kansas costs around $23,310. After buying a system at that price, you can get a $6,993 credit when you file your taxes.

The solar tax credit is not a rebate or refund — you must claim it when you file federal taxes in the year that your solar panel system becomes operational. To do this, you have to complete Form 5695. The credit is also nonrefundable, meaning any unused portion rolls over into the next tax year.

Solar property tax exemption

Other than the federal tax credit, Kansas only has one statewide solar incentive. Homeowners who go solar can get a property tax exemption on the value solar panels add to their property for up to 10 taxable years.

This is great, considering that a study by Zillow estimates that, on average, houses with solar panels sell for 4.1% more than those without. The solar property tax exemption applies to residential, commercial and industrial solar investments.

The incentive is administered by the Kansas Corporation Commission. In addition to solar photovoltaics (PV panels), geothermal electric and solar thermal electric technologies are also eligible. Residential, commercial and industrial solar investments can qualify.

» MUST-KNOW: Tax benefits of owning a home: deductions and secrets

What to know about net metering in Kansas

If you don’t store your excess solar energy in solar batteries, you can sell it to your electric company. This process is called net metering. In Kansas, two electric companies are required to offer net metering programs to customers: Evergy and Empire District.

Payment is a credit on your account; if you don’t use it by the end of March each year, it will expire. Your system must be 15 kilowatts or less to qualify for net metering.

Solar resources in Kansas

Below are some additional resources that can guide you through transitioning to solar in Kansas.

» GREENEST STATES: Kansas ranks No. 15

Find solar companies in Kansas

Compare popular solar companies available in Kansas below. Read our guide to finding the best solar companies for more.

Do you own or rent?

FAQ

Can I get solar panels for free in Kansas?

No, but you can get a solar lease with little to no upfront costs. Still, it’s not completely free — solar leases generally require a flat monthly fee. 

» FREE SOLAR PANELS: Are they really free?

How can I pay for solar panels?

You can pay cash, but most people finance solar panels. A solar loan works a lot like any other type of loan — there’s an application and approval process, and you pay it back over time (with interest). If you are considering a solar loan, lease or power purchase agreement, always ask:

  • Is there a down payment?
  • How much will I pay per month?
  • Will monthly payments increase, and by how much?
  • Do you put a lien on my house?

» SOLAR PANELS: Lease vs. buy

How much can I save with solar panels in Kansas?

In Kansas, the average savings is $21,455 over 25 years. Even if you don’t generate 100% of your energy needs, you can still save a lot of money versus paying traditional utility bills.

Are there any commercial solar incentives in Kansas?

Yes, Kansas offers property tax incentives for installing solar panels for commercial use.

» MORE: Commercial solar panels

Bottom line: How much are solar panels in Kansas?

Solar panels in Kansas are cheaper than in other states, at an average of $23,310. You could pay even less with the federal solar investment tax credit and the property tax exemption. Plus, over 25 years, you could save an average of $21,455 on top of your more immediate savings.

The ConsumerAffairs Research Team conducted an in-depth analysis to determine how much it costs to go solar in Kansas and the average solar costs in other states.

Solar costs: Kansas vs. nearby states

*Before the federal investment tax credit (ITC); **When you pay in full upfront

Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
  1. DSIRE, “Kansas Solar Programs.” Accessed Nov. 18, 2023.
  2. EcoWatch, “How Much Do Solar Panels Cost in Kansas?” Accessed Nov. 18, 2023.
  3. United States Environmental Protection Agency, “Summary of Inflation Reduction Act provisions related to renewable energy.” Accessed Nov. 18, 2023.
  4. Solar Energy Industries Association, “Kansas Solar.” Accessed Nov. 18, 2023.
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