Kansas City  Guide to Residential Solar Panels (2021)

Kansas City may be known for its Jazz heritage, mouth-watering barbecue, and immaculate fountains, but with over an average of 200 sunny days a year, did you know that it is also a beautiful location for solar energy?

Before we start, here is a rundown of the solar situation in Kansas City:

kansas city solar report card

It’s essential before we continue into the details of your solar opportunity in Kansas City that we call attention to a Federal Tax Credit that is currently available to homeowners installing solar panels on their homes. With this credit, you will be receiving an incredible 26% return on the entire cost of installing your solar system. This credit has been extended to cover the next two years, but we can have no guarantee that it will be renewed. This means you have an incredible opportunity now to take advantage of these extraordinary savings!

The Benefits of Solar Energy

Solar energy has been a growing choice for residents year-over-year, and it’s not hard to see why. With the incredible environmental benefits, many have taken this opportunity to do a part in cleaning up our surrounding climate. However, most people aren’t even fully aware of the financial benefit that comes with a transition to solar power. We’re going to break down this benefit so you can see how incredible this opportunity is right now!

Cost of Solar Installation in Kansas City

The climate in Kansas City is great for solar energy, which means lower costs and more savings for you. Before we dive into some incredible savings, it’s important to understand the full cost of a solar system installation in Kansas City. We put together this graphic to point out what makes up your final cost:

kansas city solar panel cost

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In Kansas City, your average system for solar energy is going to be the 5 kilowatts (kW) or 5,000 watts option. This option will cover your average size home of about 1,500 square feet. Your total installation price, as you can see, has an average market price of $16,150. This is going to be the average quote you will receive when speaking with different Kansas City solar companies. 

So, now you’re wondering, “where are these savings you spoke of.” Let’s first look back at the “Federal Tax Credit for Solar Photovoltaics” that we pointed out in the beginning, and explore how you can drastically reduce this cost. 

Federal and Other Solar Tax Incentives In Kansas City

The Federal Tax Credit, as mentioned before, offers you a 26% return on your complete installation of solar panels. This means that for your $16,150 system you would be looking at a return of $4,199, reducing your total install costs to $11,951! Already, we have reduced our costs for the incredible switch to solar energy, by over a quarter of its value, and this is just the beginning!


kansas city federal solar tax credit rebate incentive

Property Tax Exemptions

A person’s home will often be the largest asset they own, which means we will do a multitude of improvements to help maintain and raise that asset’s value. Often we might weigh out the increase in home value and its corresponding increase for our property taxes. However, one incredible thing that Kansas City residents can take advantage of is the incentive to claim a property tax exemption on the value of any improvement from solar energy. So what does this do for your home value? Let’s break it down. 

Current average home values in Kansas City are at just under $180,000 and rising. We know that a solar system installation, across the country, will increase your home’s value by approximately 4%. Therefore, in Kansas City, we can expect an additional $7,200 in home value, exempt from increasing property tax! 

So we’ve discussed the Federal Tax Credit that will shave thousands of dollars off your system costs and we’ve looked at the tax benefit available while you increase your home’s value by 4%. Now let’s look at the money you could save on your energy bill.

Energy Bill Savings

In order to help put numbers to the saving potential that’s in store for you, let’s continue with the 5kW example common to Kansas City. We will calculate what you pay for electricity (this is calculated in kilowatt-hours or kWH) and then we subtract the amount of energy created by your new solar panels.

Currently, Kansas City has an electricity price of 10.93¢/kWh, a cost that is 7.4% above the Missouri average. 

A 5kW system in Kansas City should produce an average of 6,750 kWh a year.

Now we multiply the cost ($.1093) by our solar output (6,750 kWh):


$.1093 X 6750 kWh = $737.78


When you make the switch to your 5kW system, you will be effectively saving an average of $737.78 every year for the life of your solar panels, which we estimate at 30 years. Keep in mind that this doesn’t even take into consideration the ever-rising price of electricity: which means your savings grow each year!

Now that we have our savings we can find the time it will take for these savings to pay-off our solar panel installation. We will take the total cost after the Federal Tax Credit ($11,951) and divide that by our yearly savings. 


$11,951 / $737.78 = 16.2 years


That means that after just over 16 years, those savings become pure profit in your pocket. How much are we looking at? Well, we just need to take the remaining life of your solar panels and multiply that number by your yearly savings. 


30 years – 16.2 years = 13.8 years X $737.78 = $10,181.37 in life time energy savings!


Add these lifetime savings to your increased home value ($7,200) and you’re looking at a total return of $17,381. That’s a return on investment of 145%! This is an incredible, if not unheard of, ROI for an essentially risk-free and reliable investment that not only does good for your wallet but for the environment as well!

Are Solar Panels in Kansas City Worth It?

While we know that over $10,000 in lifetime energy savings and an ROI of 145% is incredible, we also understand that an investment of $11,000 is no small matter. If you’re not capable of buying a solar system outright, there are financing options as well. Still, beyond these savings, there are a few other benefits that we believe make solar worth it in Kansas City.

Protection From Utility Energy Costs

We know that electricity prices have been rising for years. Utility costs are constantly fluctuating with factors such as demand, climate, and market. In the last 10 years alone, we have seen the national average price per kWh rise by 15%! We know that this isn’t going to go away, especially as our natural resources continue to be strained. 

These rising prices, if they continue on trend, could be 50% higher in just 30 years. Switching to solar energy removes you from this increasing cost. With each year, as the price of electricity continues to rise for Kansas City, your savings will rise with it!

Renewable Energy Benefits Everyone

Environmental reasons can often be reason enough for some people to make the switch. Every year that you produce your own renewable energy, you are directly reducing carbon emissions. They estimate that your residential solar panels will produce the clean energy equivalent to removing an average passenger vehicle off the road for 25 years. This means a better environment by healthier air quality for your own community. 

Freedom From Energy Companies and the Grid

Taking the power of your home from the energy companies will not only save you from fluctuating prices but will also give you reliability. Power grids are susceptible to failures year-round, whether it be caused by inclement weather or simply due to some inconvenient maintenance you didn’t know was happening in the middle of your family movie time. 

When you switch to your own solar energy, you alone are responsible for your power. This means you no longer have to worry about falling branches breaking your power lines or lightning blowing a transformer down the street. This peace of mind is available to you and your home in Kansas City.

Next Steps for Kansas City Solar Customers

As we have stated from the beginning, Kansas City is an incredible spot to take advantage of these benefits. There are many reputable solar companies here, which gives you ample opportunity to learn specifics about installing a solar panel system on your home. These installers focus on making this transition seamless for you, which means you can worry less, and get right into the enormous savings! 

So what are you waiting for? Now is the time to start saving on your monthly energy bill and investing in one of the best high-yield, low-risk options out there – solar panels! All you have to do is enter your zip code and you will receive estimates for your solar panel cost, system size, incredible financing options, and some great warranty options as well!

Solar Action Alliance is, first and foremost, a resource to help teach potential solar customers (you) about the ins and outs of residential solar, but we also connect customers with reputable, low-priced local solar companies who we have thoroughly vetted. If you’re interested in connecting with a solar contractor who can give you a full quote on a PV System (solar panels) for your home, simply enter your zip code below to get started.