The Kansas City Board of Public Utilities Board of Directors approved two resolutions to advance a community solar project designed to deliver direct bill benefits to qualifying low-income households and support long-term rate stability.
The project is a 5-megawatt solar generation facility intended to provide a local energy source and reduce BPU’s exposure to pricing volatility in regional energy markets, the Kansas public power utility noted.
Under Resolution 5324, the board authorized BPU’s general manager to finalize and apply for a qualified low-income economic benefit program tied to the project.
If approved by the Internal Revenue Service, the project may qualify for a federal tax credit under
the Inflation Reduction Act of 2022, estimated at $2.6 million in the project’s value.
If the Internal Revenue Service approves BPU’s application and allocates the bonus credits, BPU will provide at least 50% of the financial benefits of electricity produced by the solar facility to qualified low-to-moderate income households through bill credits.
Under Resolution 5325, the board also confirmed funding approval for the project and approved the documentation needed to apply for the federal tax credits.
“The intent is straightforward: use local solar to reduce volatility and deliver measurable benefits back to customers who need it most,” said Andrew Ferris, BPU chief financial officer.
The facility will interconnect to BPU’s distribution system near the Nearman Creek Substation. BPU said an electric distribution solar impact study found minimal to negligible impact and that the existing distribution system can accommodate the project with limited enhancements.
Customer bill credits would begin only after the Internal Revenue Service approves BPU’s application for the low-income bonus credits and the solar facility is built and placed into service.
