If you own a business in Bourbon County and selected other counties in rural Kansas, you can apply for a U.S. Department of Agriculture (USDA) grant and get up to 50% off the cost of solar panels.
Add the 50% federal tax credits available for renewable energy installations in Bourbon County, and a business owner could get a solar system for nearly free, according to Daniel Zywietz, founder of SEK Solar, Chanute.
SEK Solar designs and installs solar systems and also helps with the grant application, allowing business owners to drastically reduce their utility bills, he said.
Before starting SEK Solar, Zywietz founded and ran Enerwhere, the Middle East’s largest rooftop installation company and one of the world’s largest microgrid operators. The company started as a provider of temporary power services to the construction industry in 2012 and quickly expanded into the commercial rooftop solar market in Dubai, building over 45 MW of solar over 10 years, including the world’s second-largest solar rooftop system at the time, covering an area of more than 23 football fields, he said
He ended up in the Middle East as a management consultant working for Booz & Company, a spin-off of Booz Allen Hamilton, and one of the best-known management consulting companies worldwide.
With his wife (who is originally from Humboldt, KS) looking to move home after the COVID-pandemic, Zywietz started to look into the solar market in Kansas and was astonished to find that there were hardly any solar panels installed, despite the clear and sunny skies and large open spaces. With over $1 billion in grant funds for solar and energy efficiency available to agricultural and rural small business owners under the USDA’s Rural Energy for America (REAP) program, Zywietz and his wife decided to set up a solar company to service local business owners.
What made the opportunity even more exciting was that the Inflation Reduction Act (IRA), passed in 2022, not only refilled the REAP program, which had been running for 10 years with much lower funding levels, but also significantly improved the Federal tax credits available to rural Kansans, according to Zywietz.
According to the EPA website, the credits are structured in three separate buckets, according to information from Zywietz. The 30% base tax credit is available to anyone wanting to install a solar system at the business or home, anywhere in the US. A further 10% “Low-Income Community” bonus is available to projects in disadvantaged areas. (Bourbon County, together with most of South-East Kansas, qualifies). Finally, there is another 10% “Energy Community Bonus” available to areas that previously hosted coal mines or coal-fired power plants, and again, Bourbon County qualifies, according to a map provided by the Department of Energy. Added together, the tax credits can add up to 50% for a renewable energy project in Fort Scott and the surrounding area.
While the tax credits don’t require any special application process, the REAP grants do. It all starts with checking whether a business’s location is eligible based on the USDA’s Property Eligibility site, says Zywietz.
The USDA defines a rural area as an area with a population of less than 50,000 people. The second criterion is the business size. The small business size standard is based on either annual revenue or the number of employees, depending on a North American Industry Classification System (NAICS) code, which is used by federal agencies to classify businesses by industry type, according to http://kansasenergyprogram.org/assessments/REAP-OverviewFAQ
This generally means that if a business has less than $10 million in revenue or less than 100 employees and is a for-profit business, such as a restaurant, hair salon, retail business, or farm business, the owner is eligible to apply, Zywietz said.
“It’s a tedious grant application process,” he said. “The smallest grants of up to $20,000 have a nearly 100% approval rate because $200 million were set aside for these small projects and there aren’t enough applications, as most small business owners find it too time-consuming to fill in all of the forms. Larger grants, which can go up to $1 million, compete with other projects based on a scoring system, so getting the grant application right can make a big difference to the chance of approval. The next application deadline is June 30th.”
“It’s a big opportunity for rural business owners to lower their utility bills and go green. And while filling in government paperwork can be frustrating, I think it’s only fair for them to check if your business is legitimate before they hand you what is essentially free money. I’m happy to answer any questions on solar or the USDA REAP grants and the IRA tax credits as well,” Zywietz said.
To learn more about SEK Solar visit the website at http://seksolar.com
Zywietz can be reached at 720.940.3946 or email: [email protected].
Zywietz plans to attend the Fort Scott Chamber Coffee meetings on Thursday mornings at 8 a.m. to answer questions from business owners., he said.
The Kansas Energy Program is also available to assist you through the entire REAP grant application process, according to its website.
