Kansas solar incentives

As the United States approaches the close of 2025, the residential energy sector in Kansas stands at a critical juncture, defined by a convergence of legislative volatility, evolving utility rate structures, and significant shifts in federal subsidization. For the Kansas homeowner, the decision to adopt solar photovoltaic (PV) technology is no longer merely an environmental statement or a simple purchase of hardware; it has transformed into a sophisticated financial hedge against rising utility costs, necessitating a deep understanding of complex regulatory statutes and tax codes.
This report provides an exhaustive technical and economic analysis of the solar energy landscape in Kansas as of late 2025. It dissects the intricate interplay between the modified Federal Residential Clean Energy Credit, the landmark Kansas House Bill 2527 (HB 2527) enacted in 2024, and the disparate billing mechanisms enforced by Investor-Owned Utilities (IOUs) versus Rural Electric Cooperatives (RECs). Furthermore, it examines the abrupt contraction of low-income support mechanisms following the repeal of the Environmental Protection Agency’s (EPA) "Solar for All" program, creating a bifurcated market where access to renewable energy is increasingly stratified by income and geography.
The overarching theme of the current market is "regulatory friction." While the fundamental physics of solar generation remain unchanged, the economic value proposition is now heavily dependent on navigating the bureaucratic distinctions between "Net Metering" and "Parallel Generation," understanding the "150% Rule" for system sizing, and securing installations before the looming expiration of federal tax incentives at the end of the year. This document serves as a comprehensive guide for stakeholders, providing the evidence-based clarity required to make informed decisions in a turbulent environment.

1. Federal Incentives and the 2025 Policy Shift

The backbone of residential solar adoption in the United States has historically been the federal Investment Tax Credit (ITC), known legislatively as the Residential Clean Energy Credit. However, the political and legislative developments of 2025 have introduced a degree of uncertainty unprecedented in the last decade. The passage of the "Working Families Tax Cut" in mid-2025 has fundamentally altered the long-term trajectory of federal support, creating a "sunset" scenario that demands immediate attention from prospective solar adopters.

1.1 The Residential Clean Energy Credit (Section 25D)

Despite the legislative upheaval, the Residential Clean Energy Credit remains the single most impactful financial incentive for Kansas homeowners for the remainder of the 2025 tax year.

1.1.1 Current Operational Structure

Under Section 25D of the U.S. Tax Code, homeowners are entitled to a tax credit equal to 30% of the total qualified system costs for solar electric property placed in service during the tax year.1 This is not a deduction that lowers taxable income, but a dollar-for-dollar reduction in the tax liability owed to the Internal Revenue Service (IRS).
Qualified Expenses:
The credit applies comprehensively to the hardware and labor required to install the system. This includes:

Solar Photovoltaic Panels: The core generation hardware.
Balance of System (BOS) Equipment: Inverters, racking systems, wiring, and conduit.
Energy Storage Technology: Battery systems with a capacity of at least 3 kilowatt-hours (kWh) are eligible, regardless of whether they are charged exclusively by solar or the grid, a modification solidified in previous years.1
Labor Costs: On-site preparation, assembly, and original installation, including piping or wiring to interconnect the property to the home.1

Eligibility Criteria:
The statute requires that the home be located in the United States and used as a residence by the taxpayer. While the credit is available for both primary and secondary residences (such as a vacation home), it specifically excludes properties used exclusively as rentals where the taxpayer acts as a landlord and does not reside.1 Furthermore, the credit applies to existing homes and new construction, provided the taxpayer is the one placing the original use of the equipment.1

1.1.2 The Mechanics of Claiming the Credit

To realize this incentive, taxpayers must file IRS Form 5695 (Residential Energy Credits) alongside their annual Form 1040 return.4

Non-Refundable Nature: The credit is non-refundable, meaning the amount of the credit cannot exceed the taxpayer's total tax liability for the year. If a homeowner is eligible for a $6,000 credit but only owes $4,000 in federal taxes, the IRS will not issue a refund check for the $2,000 difference.1
Carryforward Provision: Crucially, the unused portion of the credit is not lost. The excess credit can be carried forward to the succeeding tax year, reducing future tax liability. This carryforward mechanism has no statutory lifetime dollar limit under the current rules, allowing homeowners with lower tax burdens to eventually capture the full value of the 30% incentive over multiple years.1

1.2 The Legislative Disruption of 2025

The stability of the ITC was severely challenged in 2025. The enactment of the Working Families Tax Cut on July 4, 2025, signaled a dramatic pivot in federal energy policy.6

1.2.1 The Repeal and Sunset Provisions

The new legislation included provisions that effectively schedule the termination of the Residential Clean Energy Credit for customer-owned systems. While the 30% rate was previously extended through 2032 under the Inflation Reduction Act, the new law has introduced a repeal date.

The Deadline: Documentation indicates that the federal solar investment tax credit will expire for customer-owned residential solar systems installed after December 31, 2025.2
Immediate Impact: This creates a hard "cliff" for the market. For most homeowners, this means the credit is effectively inaccessible for any project not already in the advanced stages of deployment as the year draws to a close.2
Verification of "Placed in Service": The IRS defines "placed in service" as the point at which the property is ready and available for its specific use.7 This nuance is critical; simply signing a contract or paying a deposit before December 31, 2025, is insufficient. The system must be installed and capable of generating electricity to qualify for the 2025 tax credit.

1.2.2 The Repeal of the Greenhouse Gas Reduction Fund (GGRF)

The legislative sweep also targeted the funding mechanisms for broader solar access. The Working Families Tax Cut repealed Section 134 of the Clean Air Act, effectively rescinding the funding for the $27 billion Greenhouse Gas Reduction Fund (GGRF).6

Solar for All Cancellation: A direct casualty of this repeal was the EPA's "Solar for All" program, a $7 billion initiative designed to provide grants to states, territories, and tribes to subsidize solar for low-income and disadvantaged communities. On August 7, 2025, EPA Administrator Zeldin announced the termination of the program to align with Congressional intent, rescinding all unobligated funds.6
Kansas Impact: This cancellation has had a profound impact on equity in the Kansas energy market. The Kansas Housing Resources Corporation (KHRC) and tribal entities like the Iowa Tribe of Kansas and Nebraska had been positioned to receive millions in grant funding to lower energy burdens.9 The evaporation of these funds shifts the entire financial burden of solar adoption back to the individual homeowner, effectively pricing out low-to-moderate-income (LMI) families who lack the tax liability to benefit from the ITC or the creditworthiness to secure private financing.

1.3 Strategic Implications for Homeowners

The combination of the 30% credit's imminent expiration and the cancellation of grant programs creates a polarized market environment in late 2025.

The "Rush to Install": Installers are facing capacity constraints as homeowners scramble to complete projects before the December 31 deadline.2
Economic Bifurcation: The removal of grant funding means that solar in Kansas is currently a viable investment primarily for those with sufficient tax liability to utilize the ITC and sufficient capital to finance the system without subsidies.
Future Uncertainty: For systems installed starting January 1, 2026, the federal incentive landscape is projected to be barren unless new legislation is introduced. This potential 30% increase in net system cost fundamentally alters the Return on Investment (ROI) calculations for projects slated for 2026 deployment.

2. Kansas State Statutes: The Regulatory Backbone

While federal policies provide the capital incentives, the operational viability of a solar energy system is dictated by state law. In Kansas, the governing statute is the Net Metering and Easy Connection Act (K.S.A. 66-1263 through 66-1271), which underwent a comprehensive overhaul in 2024 via House Bill 2527 (HB 2527). This legislation represents a complex compromise between the solar industry's desire for market access and the utilities' concerns regarding cost-shifting and grid stability.

2.1 The Net Metering and Easy Connection Act (Amended 2024)

The 2024 amendments to the Act significantly modernized the framework for distributed generation, but they also introduced new constraints that will tighten over time. It is crucial to note that this Act applies mandatorily only to Investor-Owned Utilities (IOUs)—specifically Evergy and Empire District Electric Company (Liberty Utilities).11 Municipal utilities and Rural Electric Cooperatives (RECs) are exempt from these specific mandates, a distinction that creates a two-tiered system of solar rights within the state.

2.1.1 Expanded System Sizing Capacities

Prior to HB 2527, residential systems were often artificially capped at low thresholds (e.g., 15 kW), which prevented larger homes or those with electric vehicles from offsetting their full energy usage. The 2024 amendments introduced a more logical, load-based approach to system sizing.

The 150 kW Ceiling: The bill raised the maximum system size for residential, commercial, and industrial customers to 150 kilowatts (kW).11 This ten-fold increase (for residential) effectively removes the hardware size cap as a barrier for nearly all residential applications.
The Load-Based Formula: While the cap is 150 kW, the specific size allowed for a customer is determined by a formula based on the customer's historic average energy consumption.11 The system acts to "appropriately size" the generation to the load, preventing customers from becoming merchant power plants disguised as residential accounts.
Future-Proofing Limitations: Importantly, utilities often restrict sizing calculations to historical usage. Snippets indicate that Evergy, for example, is unable to consider "potential future load," such as a planned pool or electric vehicle purchase, when calculating the maximum allowable system size.12 This creates a procedural hurdle for new homeowners or those planning electrification upgrades, forcing them to establish a usage history before maximizing their solar array.

2.1.2 The "150%" Export Rule and the 2026 Restriction

HB 2527 introduced specific limitations on how much power a system can export to the grid, designed to encourage self-consumption and grid stability.

The Export Capacity Definition: For customers connecting under the new rules (post-July 1, 2024), the export capacity is tied to the historic usage calculations.11
The 2026 Constraint: A critical provision of the bill targets future adopters. For customers who begin participating in net metering on or after January 1, 2026, the generation capacity is limited to 50 percent of export capacity.11
- Analysis: This cryptic statutory language implies a shift toward systems that consume more than they send back. If a system is designed to export only 50% of its capacity, it effectively mandates the integration of battery storage or advanced inverter controls to "clip" production or store excess energy on-site. This provision is a clear signal that the state legislature intends to reduce the volume of energy flowing backward through the distribution grid.

2.1.3 The Aggregate Capacity Cap (The 1% to 5% Slide)

To prevent unlimited erosion of utility revenue, the Act sets a "ceiling" on the total amount of net metering capacity a utility must accept.

The Escalator: The cap was historically set at 1% of the utility's peak demand. Under HB 2527, this cap increased to 2% on July 1, 2025, and is scheduled to increase by an additional 1% each July until it reaches 5% in 2027.11
Market Implication: This expansion provides immediate "headroom" for the market. In previous years, the 1% cap was a looming threat that could have triggered a moratorium on new solar connections. The legislative increase to 5% ensures that, at least for the next few years, regulatory capacity will not be the bottleneck for adoption in Evergy territory.

2.2 Property Tax Exemptions: A Wealth Protection Mechanism

Kansas offers a robust property tax exemption that is critical for the long-term ROI of solar assets. Without this exemption, the value added to a home by a solar array would result in higher annual property tax bills, eroding the savings generated by the system.

2.2.1 The Renewable Energy Property Tax Exemption (K.S.A. 79-201)

Scope: The statute provides a property tax exemption for property "actually and regularly used predominantly to produce and generate electricity" using renewable resources, including solar photovoltaics.14
Duration: For exemptions applied for after December 31, 2016, the exemption is valid for the 10 taxable years immediately following the year in which construction is completed.14
Valuation Impact: Residential solar systems can cost between $15,000 and $40,000. In Kansas, where residential assessment rates are 11.5% and mill levies often exceed 150, adding $20,000 in taxable value could cost a homeowner ~$345 per year in taxes. This exemption saves that cost for a decade, totaling over $3,400 in protected value.
The Battery Exclusion: A significant clarification was issued in September 2024. The Kansas Department of Revenue’s Division of Property Valuation issued guidance stating that the exemption does not apply to Battery Energy Storage Systems (BESS) if they are merely attached to a renewable system. While standalone BESS might qualify for commercial exemptions, residential batteries are likely subject to standard property taxation.14

2.3 Sales Tax: The Labor vs. Materials Nuance

A common misconception among Kansas homeowners is that solar installations are entirely sales tax-exempt. The reality is a partial exemption based on the tax treatment of residential labor.

2.3.1 The Residential Labor Exemption

Kansas law generally exempts the gross receipts received for the service of installing or applying tangible personal property in connection with the "original construction, reconstruction, restoration, remodeling, renovation, or repair" of a residence.16

Implication: The labor portion of a solar installation contract—which can account for 30% to 50% of the total project cost—should not be taxed.
Materials Taxation: The solar panels, inverters, and racking equipment are classified as tangible personal property. The contractor is deemed the final consumer of these materials and must pay sales tax on them at the time of purchase (which is then passed on to the customer in the total price), or collect tax from the customer if retailing the materials.16
No Specific Solar Exemption: Unlike some states that have a dedicated sales tax holiday for energy-efficient appliances, Kansas has no specific statute exempting the materials of a solar system from sales tax.19 Homeowners should scrutinize their invoices to ensure sales tax is applied only to the materials and not the labor services.

3. Investor-Owned Utilities: The Evergy Ecosystem

Evergy serves the majority of the Kansas population, including the Kansas City metro area, Topeka, and Wichita. As an Investor-Owned Utility regulated by the KCC, its policies are a direct reflection of the state statutes and recent rate case settlements.

3.1 The 2025 Rate Case (25-EKCE-294-RTS)

In 2025, Evergy Kansas Central (EKC) filed a significant rate case that has reshaped the financial baseline for energy consumers.

The Request and Settlement: EKC initially requested a revenue increase of $192.1 million to recover costs associated with new infrastructure, including the Viola and McNew natural gas plants and the Kansas Sky solar facility. A unanimous settlement agreement was reached in July 2025 and approved in September 2025.20
Rate Impact: The settlement resulted in a net revenue increase of approximately $128 million. For the average residential customer, this translates to an effective rate increase of roughly 9.62% for Kansas Central customers in 2025 compared to the previous year.22
The "Solar Hedge" Effect: Rate inflation is the strongest driver of solar economics. As utility rates rise, the "avoided cost" of purchasing power increases. A 9.6% rate hike effectively improves the ROI of a solar system by increasing the value of every kilowatt-hour the system generates and offsets.

3.2 Residential Net Metering Mechanics

Evergy's implementation of net metering under the new HB 2527 rules dictates how customers are compensated for their power.

3.2.1 Billing Structure

Consumption: Customers pay for energy delivered by Evergy at the standard tariff rate (or TOU rate).
Generation Offset: Energy generated by the solar system first offsets the home's immediate load. Excess energy flows to the grid.
The 1-to-1 Credit: Within a monthly billing period, Evergy provides a 1-to-1 retail kilowatt-hour credit for exports. If a home imports 500 kWh and exports 400 kWh, they are billed for the net 100 kWh.23
Net Excess Generation (NEG): If a customer exports more than they use in a month (e.g., imports 400 kWh, exports 500 kWh), the excess 100 kWh is carried forward as a credit. While these credits roll over month-to-month, they are typically cashed out or expire at the end of the annual period (March 31) at a rate closer to the system average cost (avoided cost), rather than the full retail rate.23 This discourages massive over-sizing of systems for profit.

3.3 The "Grid Access Fee" and Rate Design

A contentious history surrounds Evergy's attempts to impose specific charges on solar customers.

Historical Context: In 2021, the KCC rejected Evergy's proposal for a $3.00/kW "Grid Access Fee" on solar customers, ruling it discriminatory.24
Current Status (2025): Currently, residential solar customers are not forced onto a discriminatory rate class with mandatory demand charges. However, Evergy maintains a specific rate schedule, RS-DG (Residential Service - Distributed Generation), which includes demand components.25
Opt-Out: Customers are generally allowed to remain on the standard Residential Service (RS) rate or choose time-based options.
Time-Based Plans: Evergy offers Summer Peak, Nights & Weekends, and Standard plans.26
- Solar Strategy: Solar customers on the Summer Peak plan (where rates are high from 4 PM – 8 PM) face a misalignment, as solar production drops during this window. Without batteries, these customers may export low-value power at noon and buy high-value power at 6 PM. Staying on the Standard Plan or adding storage is often the safer financial move.

4. The Rural Electric Cooperative (REC) Divide

The solar experience for homeowners in rural Kansas is fundamentally different from that of Evergy customers. Rural Electric Cooperatives (RECs) are member-owned and generally not subject to the mandatory net metering requirements of HB 2527. As a result, many have adopted "Parallel Generation" policies that are significantly less favorable to solar owners.

4.1 Parallel Generation vs. Net Metering

The defining characteristic of the REC landscape is the use of Parallel Generation riders rather than true Net Metering.

The Mechanism: Two meters (or a bi-directional equivalent) measure inflows and outflows separately.
Retail vs. Wholesale: The member buys power at the full retail rate (e.g., $0.14/kWh) but sells excess power at the "Avoided Cost" rate.
The Avoided Cost Gap: The avoided cost represents what the Cooperative would have paid to purchase that power from its wholesale supplier. In 2025, this rate is typically between $0.025 and $0.05 per kWh.27
Economic Consequence: This 10-cent price differential destroys the economics of over-production. If a system exports 50% of its energy, the blended value of the solar power drops drastically, extending payback periods to 20+ years in some cases.

4.2 Cooperative Case Studies

4.2.1 Heartland Rural Electric Cooperative

Heartland REC has taken a strict stance on distributed generation to manage costs for its broader membership.

Parallel Generation Mandate: As of September 1, 2025, new connections are strictly Parallel Generation. The credit for excess kWh is 100% of avoided cost, cited as approximately 2.5 cents/kWh.27
Peak Charges: Heartland utilizes a Peak Charge of $4.00/kW based on the member's single highest hour of usage during peak months (3 PM – 8 PM).29 Solar is an ineffective hedge against this charge because a single cloudy day during the peak window exposes the member to the full demand charge for the month.
Moratoriums: Heartland has issued moratoriums on new solar interconnections for members served by specific substations (Devon, Greenbush, Urbana) due to grid saturation constraints.27 This highlights the "first-come, first-served" reality of rural solar access.

4.2.2 Victory Electric Cooperative

Victory Electric offers a hybrid approach but maintains strict caps.

Net Metering Rider: Available, but subject to capacity limitations. Service is denied once the total generating capacity reaches 1% (primary limit) or 5% (secondary limit) of the cooperative's peak retail demand.30
Waiver of Rights: Members electing the Net Metering rider must sign a voluntary waiver of their rights under the Parallel Generation statutes.30 This indicates the cooperative prefers to channel solar owners into a specific, capped program rather than the open-ended parallel generation mandate.

4.2.3 Wheatland Electric Cooperative

Wheatland Electric also employs a Net Metering Rider (Schedule 16-NM) but enforces a "1% cap" on total rated generating capability relative to the cooperative's peak load.31

Process Friction: Snippets note that Wheatland has faced issues with installers building projects before receiving approval, emphasizing the need for strict adherence to the application process.32
Parallel Option: Members can choose the Renewable Parallel Generation Rider, but cannot switch back and forth without approval and a one-year commitment.31

5. Economic Modeling: The ROI of Solar in 2025

To understand the financial viability of solar in Kansas, we must model the cash flows under the contrasting utility regimes using 2025 market data.

5.1 System Cost Baseline

Average Installed Cost: Approximately $2.86 per Watt.23
Typical System Size: 6 kW (Residential Average).
Gross Cost: $17,160.
Federal Tax Credit (30%): -$5,148 (Assuming installation by Dec 31, 2025).
Net Investment: $12,012.

5.2 Scenario A: Evergy Customer (Net Metering)

Assumptions: 6 kW system producing ~8,400 kWh/year. 100% offset of consumption (initially). Blended retail rate of $0.15/kWh (post-2025 rate hike).
Annual Savings: 8,400 kWh x $0.15 = $1,260.
Simple Payback: $12,012 / $1,260 = 9.5 Years.
Internal Rate of Return (IRR): With energy inflation at 4% (conservative given recent 9% hikes), the 20-year IRR approaches 12-14%. This is a strong financial performance, outperforming many traditional conservative investment vehicles.

5.3 Scenario B: REC Customer (Parallel Generation)

Assumptions: Same system. 40% of energy consumed on-site; 60% exported. Retail rate $0.15/kWh; Avoided cost $0.03/kWh.
Savings Calculation:
- Self-Consumed (3,360 kWh x $0.15): $504.
- Exported (5,040 kWh x $0.03): $151.
- Total Annual Benefit: $655.
Simple Payback: $12,012 / $655 = 18.3 Years.
Analysis: The payback period nearly doubles. Under this regime, the investment is financially marginal.
The Battery Fix: If the customer invests an additional $10,000 (net) in a battery to store that exported energy and use it later:
- New Net Cost: ~$22,000.
- New Annual Savings: ~$1,260 (100% retail value captured).
- New Payback: ~17.4 Years.
- Result: Batteries improve the functional utility and energy security but do not radically shorten the payback period due to their high upfront cost. However, they protect against future changes to avoided cost rates and demand charges.

6. Equity and Access: The Low-Income Solar Gap

The most troubling development in 2025 is the widening gap between high-income and low-income access to renewable energy.

6.1 The Collapse of "Solar for All"

The "Solar for All" program was the intended bridge for this gap. Its cancellation in August 2025 removed the primary mechanism for subsidizing the capital costs for LMI households. Without these grants, LMI families are left with the 30% tax credit—which is non-refundable and therefore useless to a family with little to no federal tax liability.

6.2 Weatherization Assistance Program (WAP)

For low-income Kansas households, the Weatherization Assistance Program (WAP) remains the most viable alternative for energy cost reduction, though it is not a solar program.

Eligibility: Households with income at or below 200% of the federal poverty level (e.g., ~$64,300 for a family of 4 in 2025) are eligible.33
Scope: The program provides comprehensive energy audits and funds improvements like insulation, air sealing, and furnace repair/replacement at no cost to the resident.35
Solar Exclusion: While WAP aims to reduce energy burdens, it rarely funds solar PV installations in Kansas, focusing instead on "building shell" efficiency which offers a higher immediate return on investment for the program dollars.36

6.3 Community Solar Subscriptions

For those who cannot afford a rooftop system, Evergy offers Solar Subscription programs (e.g., Solar Subscription Rider).

Mechanism: Customers subscribe to "blocks" of solar energy from a central facility.
Cost: Participants pay a Solar Block Subscription Charge (e.g., ~$0.13667/kWh for residential) which replaces the standard fuel charge.37
Benefit: This allows access to solar without upfront capital or credit checks. It hedges against future fuel cost volatility, as the solar rate is often fixed or more stable than fossil-fuel-based rates.38

7. Consumer Protection and Implementation Guide

The complexity of the 2025 market creates fertile ground for misinformation. Homeowners must be vigilant.

7.1 Avoiding Scams and Misleading Marketing

The "Government Rebate" Lie: Unscrupulous marketers often refer to the 30% tax credit as a "rebate check." Homeowners must understand they will not receive a check in the mail; they will only pay less tax the following April.
Utility Imposters: Victory Electric and Evergy have issued warnings about salespeople posing as utility employees. Utilities do not send door-to-door solar sales teams.39
Lease vs. Buy: Marketing that promises "Free Solar" describes a lease or Power Purchase Agreement (PPA). In these arrangements, the third-party company owns the system and keeps the 30% tax credit. The homeowner merely buys the power. While this requires no money down, it creates a long-term contract lien on the home that can complicate resale.23

7.2 The Pre-Requisite Checklist

Before signing a contract in late 2025, a Kansas homeowner should verify:

Interconnection Approval: Has the installer submitted the application to Evergy/REC? Do not start construction without approval.
REC Status: If in a rural coop, is the substation under a moratorium? What is the current avoided cost rate?
Tax Liability: Did a tax professional confirm sufficient tax liability to use the 30% credit?
Timeline: Can the installer guarantee "placed in service" status by December 31, 2025? If not, is there a price adjustment clause if the credit expires?

7.3 Insurance Requirements

Most utilities require proof of General Liability Insurance.

Evergy: Typically requires coverage (often $100k-$300k) for systems connected to the grid.
Heartland REC: Explicitly states they are not liable for damage to member equipment and require disconnect switches for safety.29

8. Conclusion

As 2025 concludes, the Kansas solar market is defined by urgency and complexity. The "Solar for All" cancellation has closed the door on subsidized low-income access, cementing solar as a middle-to-upper-class investment vehicle. For these investors, however, the fundamentals remain strong if executed correctly. The combination of Evergy's ~9.6% rate increase and the remaining 30% federal tax credit creates a compelling 9-10 year payback window for net-metered customers.
However, the regulatory clock is ticking. The impending 2026 expiration of the federal credit for customer-owned systems and the tightening of net metering export rules (the 50% limit) signal the end of the "early adopter" phase. The market is transitioning toward a more restricted, self-consumption-focused model where battery storage will eventually become mandatory for economic viability. For the Kansas homeowner, the time to act is now—but only with a clear calculator and a verified interconnection agreement in hand.

Table 1: Comparative Analysis of Kansas Solar Incentives (Q4 2025)

Incentive / Mechanism	Investor-Owned Utilities (Evergy)	Rural Electric Cooperatives (RECs)
Federal Tax Credit	30% (Expires 12/31/25 for owned systems)	30% (Expires 12/31/25 for owned systems)
State Net Metering	Mandated (HB 2527)	Not Mandated (Voluntary policies)
Export Compensation	1-to-1 Retail Credit (Monthly rollover)	Avoided Cost (~$0.025 - $0.05/kWh)
System Size Cap	150 kW (Load-based formula)	Variable (Often 10-25 kW or strict load caps)
Demand Charges	Optional (Can choose Standard Rate)	Common (Peak charges of ~$4.00/kW typical)
Grid Moratoriums	Unlikely (5% cap provides headroom)	Active in specific substations (e.g., Heartland)
Property Tax	Exempt (10 Years)	Exempt (10 Years)
Sales Tax	Labor Exempt; Materials Taxable	Labor Exempt; Materials Taxable

Legal Disclaimer: This report is for informational purposes only and does not constitute legal, tax, or financial advice. The "Working Families Tax Cut" and other 2025 legislative details referenced herein are based on the provided research materials and should be verified against current official statutes. Utility tariffs are subject to change without notice. Homeowners should consult with a certified tax professional and their specific utility provider before signing binding agreements.

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