K.S.A. 66-1263 Explained: Kansas's Net Metering and Easy Connection Act.

K.S.A. 66-1263 through 66-1271, and amendments thereto, shall be known and may be cited as the net metering and easy connection act. K.S.A. 66-1263 (lead section)

Source:

· Originally enacted L. 2009, ch. 141, § 8

That single line opens a nine-section statute (66-1263 through 66-1271) that has shaped Kansas residential solar economics since 2009. The act was passed to standardize how Kansas's investor-owned utilities handle small-scale renewable energy systems on customer premises. Unlike Missouri's RSMo 386.890 which covers all utility types, the Kansas statute mandates net metering only for investor-owned utilities (Evergy and Liberty). Cooperatives and municipal utilities can voluntarily adopt net metering programs but are not required to.

For Kansas homeowners considering solar in 2026, the most important fact about K.S.A. 66-1263 is that it was significantly amended by HB 2527 in 2024, signed by Governor Laura Kelly on June 6, 2024. The amendments removed the 15 kW residential cap that had been in place since 2014 and replaced it with a 150 kW cap for all customer classes, with a sizing formula tied to historic energy consumption. New rules take effect on January 1, 2026 that further constrain how systems are sized relative to their export capacity.

For homeowners in cooperative or municipal service territories where net metering is not offered, the parallel generation contract under K.S.A. 66-1184 is a fallback option. ALL Kansas utilities (investor-owned, cooperative, AND municipal) must enter into a parallel generation contract if requested in writing. The exported electricity is sold at 150% of the utility's avoided cost rate, which is generally less generous than net metering's 1:1 retail offset, but it's the only state-codified option for non-IOU customers in Kansas.

The K.S.A. 66-1267 sizing formula

• Step 1: 12-month historic kWh ÷ 8,760 hours = your average load (kW)
• Step 2: average load (kW) ÷ 0.144 capacity factor = baseline system size (kW AC)
• Step 3: round to nearest 2 kW (under 20 kW) or 5 kW (20 to 150 kW)

The 0.144 capacity factor reflects the average annual production of a properly oriented solar array in Kansas, accounting for solar resource, weather, and panel efficiency. The maximum cap is 150 kW regardless of what the formula produces.

A Kansas home using 14,000 kWh per year. 14,000 ÷ 8,760 = 1.598 kW average load. 1.598 ÷ 0.144 = 11.10 kW. Rounded to nearest 2 kW =

. The actual system Solar Assure designs may be smaller depending on roof space and budget, but the customer is allowed up to 12 kW under the sizing formula.

For most Kansas residential customers, the sizing formula produces a number between 5 kW and 15 kW, which matches typical residential solar needs. The 150 kW cap rarely matters for homes. Where the formula does matter is for larger homes (5,000+ sq ft with electric heat, pool, EV charging, or multiple buildings) where the customer's actual load might support a larger system, but the formula is the gating factor.

1. IOUs must offer net metering

   Evergy and Liberty Utilities are required to offer net metering on a first-come, first-served basis. The cumulative cap was 1% of utility peak demand and is rising 1% per year through 2027 when it reaches 5%. Coops and municipals are NOT mandated, though many participate voluntarily.

2. 150 kW unified system cap

   For systems beginning operation on or after July 1, 2024, the cap is 150 kW for ALL customer classes (residential, commercial, school, governmental). This replaced the prior 15 kW residential and 100 kW commercial caps. Most homes need 5 to 12 kW, well within the cap.

3. Sizing formula required (K.S.A. 66-1267)

   Customer-generators must size their system using the formula: 12-month kWh ÷ 8,760 ÷ 0.144 capacity factor, rounded to nearest 2 kW (under 20 kW) or 5 kW (20-150 kW). This caps oversizing relative to actual home consumption.

4. NEG credits roll forward, expire annually

   Net excess generation (NEG) credits are credited 1:1 against future consumption month to month. However, any remaining NEG balance EXPIRES on March 31 each year and the banked balance returns to zero. Unlike Missouri, Kansas does not pay out remaining credits at avoided cost.

5. Free bi-directional meter for IOU customers

   Investor-owned utilities (Evergy, Liberty) must provide a bi-directional meter at no additional cost to net metering customers. The IOUs are also prohibited from charging additional standby, capacity, or interconnection fees that non-net-metered customers would not face.

6. January 1, 2026: 50% generation cap

   For systems beginning operation on or after January 1, 2026, generation capacity may not exceed export capacity by more than 50%. This means you cannot install a system notably larger than what you can actually export to the grid. Energy storage devices like batteries and EVs cannot be used to inflate the sizing calculation.

7. Industry-standard safety codes

   Customer-generator systems must meet IEEE, NEC (National Electrical Code), NESC (National Electrical Safety Code), and UL (Underwriters Laboratories) standards. Systems must include an automatic disconnect that disables the unit if utility service is interrupted. Implementation rules: K.A.R. 82-17-1 through 82-17-5.

The biggest practical differences come down to two things. First, NEG credit handling: Kansas customers lose any remaining credit balance every March 31, while Missouri customers receive a payout at avoided fuel cost. Over a 25-year system life, this difference adds up to several thousand dollars for typical residential systems. Second, coverage: if you live in a coop or municipal territory in Kansas (like Kansas City KS BPU), your utility might not offer net metering at all and you may need to use a parallel generation contract under K.S.A. 66-1184 instead.

For homeowners in border cities (Kansas City KS vs Kansas City MO, Overland Park KS vs Lee's Summit MO), the choice of which side of the state line to live on actually affects long-term solar economics. A typical 8 kW system on a Missouri home will typically generate $5,000-10,000 more in lifetime net metering value than the same system on a Kansas home, primarily due to the better excess-credit treatment.