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The Ultimate Guide to Affordable Solar Panels in Kansas: A Tech Expert‘s Money-Saving Insights

As a digital technology expert and solar enthusiast, I‘ve witnessed firsthand the incredible potential of solar energy to transform our homes, our grid, and our world. But I know that for many homeowners, the decision to go solar comes down to one key factor: cost.

The good news is, with the right knowledge and strategies, solar can be a sound financial investment even in states with modest incentives – like Kansas. As a native Kansan myself, I‘ve put together this ultimate guide to help my sun-soaked neighbors save big on their solar dreams.

Assessing the Sunflower State‘s Solar Potential

First, let‘s take a data-driven look at where Kansas stands in the solar landscape. According to the latest figures from the Solar Energy Industries Association (SEIA), Kansas currently ranks 45th in the nation for installed solar capacity, with just over 100 megawatts (MW) of solar installed as of Q4 2022. That‘s enough to power about 12,000 homes.

However, those rankings don‘t tell the full story of Kansas‘ solar potential. In fact, the National Renewable Energy Laboratory (NREL) estimates that Kansas has the technical potential to generate over 11,000 gigawatt-hours (GWh) of solar electricity annually – that‘s over 40% of the state‘s total electricity consumption!

Here‘s a key data point to illustrate that untapped potential: Kansas has an average of 230 sunny days per year, according to the Kansas Geological Survey. Compare that to the U.S. average of 205 sunny days. All that abundant sunshine is just waiting to be harnessed by solar panels on Kansas rooftops.

So if the solar resource is there, what‘s holding Kansas back? Unfortunately, the state has been slow to adopt policies that support and incentivize residential solar growth. Let‘s take a closer look at the current policy landscape.

The Ups and Downs of Kansas‘ Solar Policies

Net Metering: A Crucial Policy in Flux

One of the most important solar policies is net metering, which allows solar homeowners to send their excess electricity back to the grid and receive credit on their utility bills. Kansas has had a statewide net metering law in place since 2009, requiring investor-owned utilities to offer net metering to customers with solar arrays up to 25 kilowatts (kW).

However, in 2018, the Kansas Corporation Commission dealt a blow to solar adopters by ruling that utilities only had to compensate that excess solar electricity at the "avoided cost" rate (about 3-4 cents per kilowatt-hour) instead of the full retail rate (around 12-13 cents per kWh). This significantly reduced the value of net metering credits and extended the payback period for solar installations.

To put that in perspective, let‘s say you have a 6 kW solar system that generates 10,000 kWh of electricity per year, and you use 8,000 kWh in your home. Under the old net metering rules, you would have received a credit worth about $240 for that extra 2,000 kWh you sent back to the grid (assuming a retail rate of 12 cents/kWh). But under the new avoided cost rate, your credit would only be worth about $60 – a 75% reduction!

While Kansas‘ net metering policy is still better than having no net metering at all, this change has made solar less financially attractive for many homeowners. As a solar expert, my advice is to size your system to cover most, but not all, of your electricity needs, so you‘re not relying too heavily on those reduced net metering credits.

The Roller Coaster of Renewable Standards

Another key policy driver for solar is the state‘s renewable portfolio standard (RPS), which sets goals for how much of the state‘s electricity should come from renewable sources like solar and wind. Kansas was actually an early adopter of an RPS back in 2009, with a goal of 20% renewables by 2020.

However, in 2015, the state legislature threw the solar industry a curveball by making the RPS voluntary rather than mandatory. This means utilities are no longer required to meet the 20% target, taking away a key incentive for them to support solar growth.

Despite this setback, some utilities in Kansas have still been investing in solar. In 2022, the state‘s largest utility, Evergy, announced plans to add 700 MW of solar to its portfolio by 2024. While most of this will be large-scale solar farms, it‘s still a positive sign for the overall solar market in Kansas.

The Lone Bright Spot: Property Tax Exemption

Amidst the mixed bag of solar policies in Kansas, there is one consistent bright spot: the state‘s property tax exemption for residential solar panels. Thanks to this policy, any increase in home value from a solar installation is exempt from property taxes.

To illustrate the impact of this exemption, let‘s consider an example. The median home value in Kansas is around $178,000, according to Zillow. A typical 6 kW solar system would add about $15,000 to that value. With Kansas‘ average property tax rate of 1.37%, that solar addition would normally tack on an extra $205 to the homeowner‘s annual tax bill.

But with the exemption in place, that additional $205 tax is waived – not just for one year, but for the entire lifetime of the solar array! Over a 25-year span, that adds up to over $5,000 in tax savings. It may not be as flashy as a big upfront rebate, but it‘s a valuable long-term incentive that every Kansas solar adopter should be thankful for.

Here‘s a quick table summarizing the key solar policies in Kansas and how they compare to neighboring states:

State Net Metering Policy Renewable Standard Property Tax Exemption State Tax Credit
Kansas Avoided cost rate Voluntary 20% by 2020 Yes No
Missouri Retail rate Mandatory 15% by 2021 Yes Yes (25%, $50k cap)
Colorado Retail rate Mandatory 30% by 2025 (IOUs) Yes No
Nebraska Varies by utility Voluntary 10% by 2020 No No
Oklahoma Retail rate Voluntary 15% by 2015 Yes No

As you can see, Kansas falls somewhere in the middle of the pack compared to its neighbors. While it doesn‘t have the strongest solar policies, it‘s not the worst either. Missouri stands out as the leader with both retail net metering and a generous state tax credit, while states like Nebraska lag behind with no property tax exemption and weaker net metering rules.

The Economic Case for Solar in Kansas

So we‘ve assessed the solar potential and policy landscape in Kansas – but what about the bottom line? Does going solar make financial sense for Kansans, even without a plethora of state-level incentives?

The short answer is: yes! While the payback period and overall savings may not be as impressive as in solar-friendlier states, the average Kansas homeowner can still save tens of thousands of dollars by installing solar panels.

According to EnergySage‘s latest Solar Marketplace Intel Report, the average cost of a residential solar installation in Kansas is $3.06 per watt. For a typical 6 kW system, that translates to a total cost of $18,360. However, that doesn‘t account for the hefty 30% federal tax credit, which would knock $5,508 off that price tag, bringing the net cost down to $12,852.

With those upfront costs in mind, let‘s look at the potential long-term savings. The average Kansas household uses about 900 kWh of electricity per month, at an average price of 12.69 cents per kWh (according to EIA data from 2022). That‘s a monthly electricity bill of $114.21, or $1,370.52 per year.

Now, let‘s say that same household installs a 6 kW solar system, which produces about 8,400 kWh of electricity annually in Kansas‘ sunny climate. That‘s enough to offset almost 80% of the household‘s electricity usage! Even with the reduced net metering credits, the solar homeowner would still save about $85 per month, or $1,020 per year, on their electricity bills.

Over the 25+ year lifespan of a typical solar panel system, those annual savings add up. Even accounting for the upfront cost and assuming a modest 2% annual increase in electricity rates, the EnergySage report estimates that the average Kansas solar homeowner will save a net total of $21,348 over 25 years. That‘s a return on investment (ROI) of over 165%!

But the economic benefits of solar in Kansas go beyond just individual homeowner savings. According to The Solar Foundation‘s 2022 Solar Jobs Census, Kansas already has over 1,200 solar workers, and that number is projected to grow by 8% in the coming year. These are well-paying, local jobs that can‘t be outsourced.

Additionally, a recent study by the Kansas City-based Metropolitan Energy Center found that if Kansas reached its goal of 20% renewable energy by 2025, it would create over 4,000 jobs and generate $5.6 billion in economic output for the state. Solar energy can be a powerful driver of economic growth and diversification for Kansas, if policymakers embrace it.

Strategies to Maximize Your Solar Savings

As a solar technology expert, I know that going solar is not a one-size-fits-all proposition. The best way to maximize your solar savings will depend on factors like your location, energy usage, home layout, and financial situation. However, here are some general tips and strategies I recommend for any Kansas homeowner looking to go solar on a budget:

  1. Act fast to claim the 30% federal tax credit. This is by far the biggest financial incentive available to Kansas solar adopters, but it won‘t be around forever. The 30% credit is available for systems installed through the end of 2032, but then it steps down to 26% in 2033 and 22% in 2034 before expiring completely for residential systems in 2035. If you‘re serious about solar, don‘t wait to claim this massive discount.

  2. Get multiple quotes from reputable installers. The solar market is competitive, and prices can vary widely between installers. I recommend getting at least 3-4 quotes from licensed and experienced installers in your area. Check their customer reviews, compare their equipment offerings, and don‘t be afraid to negotiate. Tools like EnergySage‘s Solar Calculator can help you assess and compare your options.

  3. Right-size your system based on your energy needs and goals. Bigger is not always better when it comes to solar. With Kansas‘ reduced net metering credits, it‘s important to size your system to cover most, but not all, of your electricity usage. That way, you‘re not overproducing and selling excess power back to the grid at a discounted rate. Work with your installer to analyze your energy bills and design a system that matches your needs.

  4. Consider adding battery storage to boost your savings and reliability. One way to get more value from your solar panels is to pair them with a battery storage system. This allows you to store your excess solar power and use it later when the sun isn‘t shining, reducing your reliance on the grid. Storage can also provide backup power during outages, a growing concern as extreme weather events become more frequent. While storage does add to the upfront cost, it can enhance your long-term savings and peace of mind.

  5. Explore all your financing options. While paying for solar in cash will yield the highest savings, it‘s not feasible for every homeowner. Fortunately, there are a variety of financing options available that can make solar more affordable. Many installers offer solar loans with low interest rates and no money down. You can also look into home equity loans, personal loans, or even solar leases or power purchase agreements (though these typically offer lower savings than ownership). Don‘t let upfront costs deter you from going solar – with the right financing, it can still be a winning investment.

  6. Take advantage of local utility programs and rebates. While Kansas doesn‘t have any statewide solar rebates, some utilities and local governments offer their own incentives. For example, Evergy customers can earn a $0.25 per watt rebate (up to $1,250) for installing solar panels through the utility‘s Solar Rewards program. Similarly, the City of Lawrence offers a $1,000 grant for residents who install solar. Be sure to check with your utility and local government to see if any additional incentives are available in your area.

  7. Make energy efficiency upgrades before going solar. One often-overlooked way to maximize your solar savings is to make your home as energy efficient as possible before installing panels. By reducing your overall energy consumption, you can get by with a smaller, less expensive solar array. Simple upgrades like LED light bulbs, weatherstripping, insulation, and a programmable thermostat can go a long way in cutting your energy bills and making solar more affordable.

The Future of Solar in Kansas: Challenges and Opportunities

As a solar advocate and technology enthusiast, I‘m excited about the future of solar energy in Kansas, even as I recognize the challenges that lie ahead. With continued advances in solar technology, falling costs, and growing public support for clean energy, I believe solar will play an increasingly vital role in powering the Sunflower State.

However, realizing that potential will require overcoming some key obstacles. One of the biggest is the lack of strong, consistent state policies to support solar growth. As we‘ve seen, Kansas has taken a few steps backward in recent years with the weakening of its net metering rules and renewable energy standards. To unlock the full economic and environmental benefits of solar, Kansas policymakers will need to recommit to forward-thinking, pro-solar policies.

Another challenge is the entrenched power of the fossil fuel industry in Kansas, which has long dominated the state‘s energy mix and political landscape. According to the EIA, coal and natural gas still account for over 60% of Kansas‘ electricity generation, while solar makes up less than 1%. Transitioning to a cleaner, more renewable grid will require overcoming resistance from utilities and fossil fuel interests that stand to lose market share.

But amidst these challenges, there are also exciting opportunities on the horizon. One is the rise of community solar programs, which allow multiple customers to share the costs and benefits of a larger solar array. This can make solar accessible to renters, low-income households, and others who may not be able to install their own rooftop panels. In 2022, Kansas passed legislation (the Kansas Neighborhood Revitalization Act) to enable and regulate community solar projects, opening the door for more equitable solar growth.

Another opportunity is the integration of solar with other smart grid technologies like battery storage, electric vehicles, and demand response. By creating a more flexible, resilient, and interactive grid, these technologies can enhance the value and reliability of solar power while also creating new opportunities for energy management and savings. Kansas utilities like Evergy are already exploring pilot projects in this space, such as a virtual power plant program that pays homeowners for using their smart thermostats and appliances to reduce peak demand.

Ultimately, the future of solar in Kansas will depend on the collective efforts of policymakers, utilities, businesses, advocates, and everyday citizens. By working together to advance smart, equitable solar policies and projects, we can harness the power of the sun to create a brighter, cleaner, and more prosperous future for all Kansans. As a solar expert and proud Kansan, I‘m committed to being part of that solution – and I invite you to join me on this exciting journey.