2024 Solar Incentives Guide for Olathe, KS - Tax Credits & Rebates

What Solar Tax Credits, Incentives, and Rebates are Available in Olathe?

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Solar incentives are intended to make renewable energy usage more affordable via financial incentives for individuals who install solar panels on their homes. Various kinds of incentives, including cash back, discounts or credit towards your monthly utility bill, may be available to you. Certain incentives may be offered by the Kansas government, by your utility company or by county or municipality, while others are federal. Some solar incentives you might qualify for are:

• Tax Credits: Different from tax deductions, tax credits reduce, dollar-for-dollar, the amount of income tax that you owe the federal government.
• Tax Exemptions: Sales tax exemptions go into effect at the point of sale for your solar system. Property tax exemptions allow you to exclude the value that your solar panels add when calculating how much property tax you need to pay on your home.
• Rebates: A rebate is a partial refund given after you've purchased your solar system. Rebates may be offered by your local utility company, your state or your county. The cash back that you get from the rebates is normally applied before calculating tax credits.
• Net Metering: You can sign a net metering contract with your Olathe utility company. This agreement may apply to all or a percentage of the excess electricity your solar panels generate. They will then deduct this value from your utility bill each month.

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Federal Solar Incentives

Federal incentives are the kind of incentives that you are most likely to have heard of. It's likely that you've heard of the Federal Solar Investment Tax Credit, or ITC. This is a tax credit equal to a specified percentage of the money you spend on your solar system.

The ITC applies to solar panels installed after January 1, 2006, on a primary or secondary residence that you own in the United States. Originally, the tax credit was for 30% of the total cost – for panels, labor, accessories and equipment – although that amount may range from 26-30%, depending on when your solar project was undertaken. There is no cap on the claim amount.

To better understand how the ITC might apply to your situation, call your local Olathe solar panel installation expert and ask for more information.

The Inflation Reduction Act, passed in August 2022, made some changes to the ITC (as well as renaming it to the Clean Energy Credit). The Clean Energy Credit bolsters the current credit, increasing it up to 30% for solar systems installed between 2022 and 2032. At this point, the credit percentage will decrease slightly each year until the end of the program in 2035. Starting in 2023, the program expansion will also make it easier to get credit for energy storage systems.

More information about the new Inflation Reduction Act can be found here. To understand how the new Clean Energy Credit applies to you, speak with your local Olathe solar installation expert.

State & Local Solar Incentives

Not all solar incentives are federal; tax credits, rebates and more might also be offered at the state and local level. Some incentives are ongoing, while others are only available for a limited time. Solar incentives might be offered by the Kansas government, or by your county or municipality.

Next Steps for Installing Solar in Olathe

Solar incentives might be offered by your local utility company, the federal government or the Kansas government. The large number of available incentives has helped nationwide use of solar energy increase greatly in the last 15 years. Speak with your local solar panel installer today to find out more information and to save as much money as possible on a solar system for your Olathe home.