Kansas Rebates and Incentives Summary
Kansas has potential to have some of the best solar programs in the nation, with the vast amount of sunlight that the state enjoys. Without so much sun, Kansas would not be able to have the thriving agricultural business that it does. Unfortunately, the Kansas state legislature has been somewhat slow to take advantage of these natural benefits, and the measures taken by the state to encourage solar power have been few and far between.
As of 2007, all energy production plants in Kansas must produce at least 10 percent of their energy from renewable sources, and utilities companies receive tax credits for electricity generated from renewable energy. Net metering is also available for Kansas residents with renewable energy systems in place, although unused utility credits earned won’t result in a rebate. For homeowners and small businesses, personal tax credits, property tax exemptions, and state loans are some of the few ways that Kansas has begun to move beyond the state’s past fixation on coal-generated energy.
Renewable Energy Facility Personal Tax Credit
| Program Type | Personal Tax Credit |
|---|---|
| Technologies | Photovoltaics, Solar Thermal Electric, Wind Energy, Biomass |
| Amount | 10 percent of the first $50,000,000 invested. Five percent for any amount above $50,000,000 |
| Required Documentation | Agreement with the Kansas Department of Commerce before construction begins |
| Official Web Site | http://www.kansascommerce.com/SpecialInitiatives/WindEnergyInitiative/tabid/262/Default.aspx |
This personal tax credit is designed to encourage business owners to construct on-site renewable energy facilities in order to meet current or future electricity needs. For renewable energy systems constructed between Jan. 1, 2007 and Dec. 31, 2011, investment tax credits can be claimed for up to 10 percent of the first $50 million spent, and an additional 5 percent for any amount above $50 million. These tax credits are claimed over the course of 10 years, in equal increments.
In order to be able to claim these tax credits, the business owner must enter into an agreement with the Kansas Department of Commerce before beginning work on the renewable energy system. The energy facilities must remain operating for at least 10 years, and the Department of Commerce will review them each year to ensure they are operating within the bounds of the initial agreement.
Renewable Energy Property Tax Exemption
| Program Type | Property Tax Incentive |
|---|---|
| Technologies | Solar Thermal Electric, Photovoltaics, Wind Energy, Geothermal Electric |
| Amount | 100 percent |
| Required Documentation | Receipts from the renewable energy equipment |
| Official Web Site | http://www.kcc.state.ks.us/energy/index.htm |
As of 1999, any renewable energy equipment installed in the state of Kansas is exempt from property taxes.
Unlike many of the renewable energy incentives available in Kansas, this tax break is available not only to businesses, but to homeowners as well, and applies to most types of renewable energy equipment, including solar panels and solar thermal electric systems. Since this exemption covers 100 percent of state property taxes, it is a modest but important step for Kansas in helping to make solar energy more widely available to private households.
Efficiency Kansas Revolving Loan Program
| Program Type | State Loan Program |
|---|---|
| Technologies | Photovoltaics, Wind, Other Distributed Energy Generation Technologies |
| Amount | Up to $20,000 for residential projects, and $30,000 for commercial and industrial projects |
| Required Documentation |
Energy audit from qualified auditor, and an Energy Conservation Plan submitted to local utilities company |
| Official Web Site | http://www.efficiencykansas.com |
Money from the American Recovery and Reinvestment Act has been set aside by Kansas to promote renewable energy and more efficient energy systems for both homes and small businesses. These loans are directly administered by public utilities companies and private lenders, and are available for repayment periods of up to 15 years.
Before applying for this loan, homeowners and business owners must first undergo an energy audit from an auditor deemed “qualified” by the program terms. The cost of the audit can be covered in the loan, although the first 1,500 applicants before April 1, 2011, may qualify for a discounted $100 audit. The audit recommendations and contractor bids for installation must then be written up as an Energy Conservation Plan to be presented to utilities companies or private lenders who in turn submit the plan to the State Energy Office.
If the loan is approved by the state, the repayment costs are included in the utility bills. The loan is attached to the property itself, and not to the individual home or business owner. This means that future occupants of the building must be told about the repayment obligation in the event that the home or business owner moves before the loan has been paid off.
Kansas Solar Power Financial Incentives
Financial Incentives
Property Tax Exemption
State Loan Program
Utility Loan Program
Utility Rebate Program
- Kansas City Board of Public Utilities - Commercial Energy Efficiency Rebate Program
- Kansas City Board of Public Utilities - Homebuilder Energy Efficiency Rebate Program
- Kansas City Board of Public Utilities - Residential Energy Efficiency Rebate Program
- Kansas City Board of Public Utilities - Subdivision Developer Energy Efficiency Rebate Program
- Kansas City Power & Light - Commercial/Industrial Energy Efficiency Rebate Program
- Kansas City Power & Light - Cool Homes Residential Rebate Program
- Kansas City Power & Light - Energy Optimizer Programmable Thermostat Rebate Program
- Kansas City Power & Light - Home Performance with Energy Star
Rules, Regulations & Policies
Building Energy Code
Energy Standards for Public Buildings
Solar Access Law/Guideline
Related Programs & Initiatives
Alternative Fuels and Advanced Vehicles Data Center
The U.S. Department of Energy's Alternative Fuels and Advanced Vehicles Data Center (AFDC) provides a wide range of information and resources to enable the use of alternative fuels and other petroleum-reduction options, such as advanced vehicles, fuel blends, idle reduction and fuel economy. The AFDC site offers a database of state and federal laws and incentives related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation-related topics.
The U.S. Department of Energy's Green Power Network provides news and information on green power markets and activities, including opportunities to buy green power. This site provides state-by-state information on green power marketing and utility green power programs. In addition, the site lists marketers of renewable energy credits (RECs), also known as green tags or renewable energy certificates, which represent the environmental attributes of the power produced from renewable energy projects.
Weatherization Assistance Program
The U.S. Department of Energy's Weatherization Assistance Program (WAP) enables low-income families to reduce their energy bills by making their homes more energy-efficient. Through this program, weatherization service providers install energy-efficiency measures in the homes of qualifying homeowners free of charge. The WAP program web site offers a state-by-state map of opportunities, projects and activities.
The U.S. Department of Energy's Wind Powering America site provides state-by-state information on wind projects and activities, including wind working groups, validated wind maps, anemometer loan programs, small wind guides, state-specific news, wind for schools, workshops and web casts.
