Kansas solar 101: must read before you buy solar panels

The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.

Like in any other state, in Kansas you can sell your electricity into the commercial grid and gain credits from your electric company. Since 2014, residential solar systems must be under 15 kW to be eligible for the Net Metering program. Commercial installations have a capacity limit of 100 kW. For those who joined net-metering after July 1, 2014, all the net excess generation (NEG) is credited at a 100% rate of the utility's monthly system average cost of energy per kWh at the end of each billing period. The rates differ from company to company, so contact your electric supplier for more information.

The Energy Efficient Mortgages (EEM) program allows you to quickly get more money for energy upgrades for your home or for a new property with preinstalled upgrades. These loans are insured through Federal Housing Authority (FHA) and Veterans Affairs (VA) programs. 

If you qualify for an FHA loan, you do for the EEM program. Usually the energy package that can be added to a standard FHA loan amounts to:

– The cost of upgrades based on the home energy assessment; or

– the lesser of 5% of:

• the Adjusted Value;
• 115 percent of the median area price of a Single Family dwelling; or
• 150 percent of the national conforming mortgage limit.

Solar systems, of course, qualify as energy-efficient upgrades, so your loan can be increased by the amount your system costs. Again, the cost of a PV system doesn’t amount to panels only, but includes accessories, shipment and installation as well. Read more about the FHA program and apply here.

EEMs through the Veterans Affairs program are available for military personnel, reservists and veterans. The exact loan amount depends on your status and credit history. Check the guide on how to apply for the VA loan here.

According to Kansas solar laws, all renewable energy equipment that you add to your house is exempted from property taxes for 10 years after the installation. Thus your taxes don’t change after the installation of panels. However, your own solar system increases the value of your home on the market. After 10 years pass, your property tax is most likely to be reassessed. 

To build a solar system in Kansas, you need a permit for it. Generally, it’s your installer who takes care of this. First, you plan the installation and find a company that performs the installation. Then an inspector from your county or municipal agency comes and checks if your house is ready. You can check the general steps of getting a permit here. The exact process may differ from county to county and it’s important to figure out what papers you will need beforehand.

Kansas state specifically notes that residents can voluntarily create solar easement contracts. A written paper should be recorded with the county register of deeds. The purpose of the contract is to ensure that the solar system receives enough sunlight and doesn’t get overshadowed by a tree on your neighbor’s land. If a branch casts a shade over your modules, you can ask your neighbor to trim the tree.

Across the United States, Kansas has the second highest average number of tornadoes annually – around 60 every year. Solar panels, however, can withstand harsh weather very well, and tornadoes in particular. Most PV modules are made to tolerate at least a 140 mph wind. The speed of a tornado is around 40–100 mph on average. There aren’t any specific requirements for minimum strength of solar panels at the state level. However, it naturally makes sense to go for especially resistant and durable modules in Kansas – the land of tornadoes.