Kansas State Solar Power Rebates, Tax Credits, and Incentives

INTRODUCTION

Solar Legislative Score:

The Flint Hills of Kansas, well the whole state really, 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. 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.

STATE LEGISLATION

A Renewable Energy Standard?

In early 2006, the Kansas legislature passed House Bill 2589, setting a renewable energy standard. This bill says that all energy production facilities put into service in 2007 or later must meet the goal of having 10% of their production from renewable sources by January 1, 2010. Sadly, old power plants were grandfathered in and face no new regulations. It must be time to replace those aging utilities in Kansas!

A little tax credit

Kansas also passed Senate Bill 251, giving a $0.005/kWh tax credit to utilities for the sale of clean power generated from renewable sources. It’s a start, especially when combined with the baby step taken by House Bill 2589.

NET-METERING

House Bill 2844, passed in 2006, established net-metering rules for Kansas utilities. Net-metering is available for systems that generate 10kW or less. Net excess generation is credited to the customer’s next bill until the end of a 12-month billing cycle. After 12 months if you generate more than you use, you’ve just made a donation to your utility company (but it’s for a good cause since you’re using clean power). Reimbursement is however capped at 1% of the total number of kilowatt hours sold by the utility. This means that up to that 1%, customers are credited at the retail rate for the power they generate. Beyond the 1% cap, the utility reimburses customers at 150% of the wholesale rate.

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES

The Kansas Energy Office had a grant program in place that offered to help fund many important clean power projects, but it relied upon money from the US Department of Energy which cut back its support, and as of 2007, the Kansas Energy Office has not found other resources to continue the program. Just goes to show that states need to find their own resources and put pressure on the federal government if solar power and other renewable energy sources are going to remain priorities in the US.

On the plus side, all equipment used to generate renewable energy is exempt from property tax in Kansas. That goes for corporations as well as individual taxpayers. Sadly, Senate Bill 385, passed in 2006, makes it possible for counties to require payment to offset the tax exemption. We’ll have to stay tuned to see what that means for the promotion of clean power in Kansas, but it doesn’t look good from here.

Check out these incentives for renewable energy in Kansas:

Property Tax Exemption

* Renewable Energy Property Tax Exemption

State Grant Program

* Kansas Energy Office Grants Program

EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST

Kansas has a Great solar rating. That means installing a solar electricity system is a cost-effective, efficient means of generating power for your home. Installing a typical 3kW system in Wichita would run about $49,500. With your new system, you’d save about $974 each year on your utility bills, and would raise your property value too. Even better, the system should pay for itself in about 22 years (using 1,300 kWh/month at a rate of $0.0858/kWh), and you’d get to keep about 160 tons of greenhouse gasses out of the atmosphere in that time! Here are some other important details about your solar power system:

• 550 square feet of roof area required
• $11,600 estimated property value increase (tax free!)
• Estimated utility bill savings over 25 years of $24,338

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. Topeka needs to take solar energy much more seriously. At present Governor Sebelius is still stuck on the dinosaur of “clean coal.” Better check out the fossils in Kansas quickly, they’ll be gone soon…

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