A year after the Inflation Reduction Act was signed into law, the solar businesses is booming across Kansas City and the United States.
According to the Solar Energy Industries Association, the U.S. solar market installed 6.1 gigawatts of solar capacity in the first quarter of 2023. That’s enough to power more than 4-million homes and a 30% increase compared to the first quarter of 2022.
“I think the interest has been there,” said Ryan Evans, principal of Kansas City-based SunSmart Technologies. “What is peaking their interest right now and making them go forward with these projects is the incentives and the increases in utility rates that we’re seeing across the US.”
He adds the cost-benefit is much better now than even a few years ago. That’s what made Overland Park engineering firm FSC, Inc. install panels last year. They had looked into it previously, but it only made financial sense when Inflation Reduction Act increased the tax credits available. When the company first inquired about solar panels in 2020, it would have taken around 9 years before they recouped the instillation costs.
“We looked at it again just last year and now with the credits that were available the return was coming out to about 4 and a half years,” said Sonia Garapaty, the Owner and CEO of FSC, Inc. “It just made sense at that time.”
They worked with SunSmart to find ways to create a net-zero system. Meaning they produce as much energy as they use throughout the year. Since the system has been operational this year, they’ve produced more energy than they’ve used and sold the rest back to Evergy.
The rise in solar panels across the United States comes as the renewable energy revolution is right around the corner. According to the International Energy Association, renewable energy is set to eclipse coal as the largest source of power worldwide by 2025.
Kansas City Mayor Quinton Lucas says the city will soon release details of their long-touted solar array project on around 3,000 acres at KCI Airport. He was in Washington, D.C., Wednesday to celebrate the anniversary of the Inflation Reduction Act at the White House and to pitch that project.
“I am thrilled that just as Kansas City is making a commitment to climate sustainability and renewable energy, so is our country.” he said. “We’re here to make sure we at least collect on some of those dollars that are available here federally.”
Mayor Lucas says the project could power a third of the city when it’s completed.
The city hopes to break ground in 2025. Mayor Lucas will release more details at a press conference Thursday morning.
GOOD HOUSEKEEPING
