As of November 2020, the average cost of a solar panel installation in Kansas is around $2.39 per watt which is lower than the average price across the US. The total cost of a 6kW solar system will not exceed $10,598 including the 26% federal solar tax credit. Keep in mind, the total cost may vary under certain factors that include:
1) The amount of electricity you use
If your home is full of electrical devices, one solar panel can barely meet your needs. Purchasing more than one solar panel will decrease your per-watt price but increase the overall cost (Note: Solar panels do get cheaper on a per-watt basis).
2) The type of solar panel you buy
The type of inverter and a silicon source for solar panels affect the overall price. There are 2 types of sources: monocrystalline and polycrystalline. As the name states, a monocrystalline solar panel is made of a single source of silicon, while polycrystalline is blended out of several silicon fragments. Monocrystalline panels are highly efficient but come at a higher price than polycrystalline solar panels.
There are two main factors that influence the amount of solar energy produced: power output and the amount of sunlight that hits the panel. Kansas receives 4.14 hours of daily sunlight on average, but the number can go above 5.5 hours during summer months. Power output is a physical solar panel attribute measured in watts (W) and it tells how much the panel can produce energy under ideal temperature (77°F) and sunlight conditions. Most home solar panels’ power output is 250 to 400 watts per 4 hours. Additional factors such as solar panel placement and shading should be considered as well.
Federal solar investment tax credit (ITC) – a governmental perk that allows all solar panel buyers to get a 26% deduction of the installing cost from federal taxes. For example, if your solar system costs $15,000, your tax credit would be $3,900. Deduction will be lowered by 5.0% in 2021 and will not be available the year after for residential solar panels.
Property tax exemption – in the state of Kansas all solar panel buyers are 100% exempted from property tax during the first 10 years after installation. Even though your solar panels add value to your property and should therefore be additionally taxed, they are exempted from property taxes. Keep in mind, the sales tax is still applied when you purchase a residential solar system.
Kansas Solar Incentives
Kansas Net energy metering (NEM) – this incentive allows solar users to send a surplus of produced power back to the grid in exchange for credits. When your solar panels produce more electricity than you need, your excess electricity will be sent to your utility company’s electric grid. However, Kansas electric coops and municipal electric providers are not required to offer net metering, but private utility companies must give you full credit for every kilowatt-hour of energy you send to their grids. All credits should be used within a year or they will be lost.
Solar easement law – this law helps panel buyers legally protect their right to direct sunlight by signing a written contract with the local county.
The state of Kansas is the 10th sunniest state in the country and has enormous potential for the solar industry. The cost of installation of a residential solar system per-watt basis is lower than the average in the country. Also, the payback period is relatively short which makes it possible to enjoy completely free energy in just a couple of years.
When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.
To be eligible to claim this credit, you must owe federal taxes.