Evergy’s Proposed Rate Increase: What It Means for Kansas Homeowners & Why Solar Might Be the Smartest Investment For Your Home

Feb 2

Kansas homeowners, brace yourselves Evergy has proposed a significant rate increase that could substantially impact your monthly electricity bill. If approved, this hike could make solar plus battery storage one of the most prudent financial moves for homeowners aiming to control their energy costs.

Let’s delve into what Evergy is proposing, why it’s happening, how it affects homeowners, businesses, and schools, and why now might be the ideal time to consider solar energy solutions.

Evergy’s Rate Hike Proposal: The Big Picture

On January 31, 2025, Evergy Kansas Central and Evergy Kansas South filed a request with the Kansas Corporation Commission (KCC) to increase electricity rates by $196.4 million, representing an 8.64% total revenue increase. If approved, these new rates would take effect in September 2025.

For homeowners using 2,000 kWh per month—a common usage level in many Kansas homes the average electric bill is currently around $200 per month. Under Evergy’s proposal, residential rates will rise by 14.96%, translating to an additional $29.92 per month, or approximately $359 per year.

Here’s a direct link to the filing for those interested in the details:

Evergy Rate Increase Filing

Why Is Evergy Raising Rates?

Evergy cites several reasons for the proposed rate increase:

1. Grid Investments ($91 million):

Upgrades to power lines and transformers.
Implementation of new technology to prevent outages and enhance reliability.

2. Increased Capital Costs ($61 million):

Higher interest rates and borrowing costs.
Adjustments to return on equity (ROE) for investors.

3. Expense Adjustments ($43 million):

Rising fuel costs.
Maintenance expenses for existing power plants.

4. Property Tax Changes ($4.3 million):

Shifting some property tax costs into base rates.

Evergy argues these investments are essential to maintain grid reliability and meet the growing electricity demand, especially with new large-scale industrial projects emerging in Kansas.

However, these increases directly impact residential homeowners, small businesses, and schools, compelling them to pay more for the same electricity theyâ€™ve been using.

Who Will Be Hit Hardest?

Not all customer categories will experience the same increase. Homeowners, churches, and schools are slated for a 14.96% increase, while small businesses will face a 12.64% hike. Larger industrial users will see increases ranging from 11.96% to 13.05%, indicating that residential customers will bear the most significant financial burden.

How Will This Affect Solar Customers?

For those who already have solar, the increase means your savings will become even more substantial over time, as you’re offsetting electricity that’s becoming more expensive.

If you’re considering going solar, here’s what this means for you:

Shorter Payback Period: With electricity prices rising, solar panels will pay for themselves even faster.
Greater Long-Term Savings: Producing your own energy shields you from future rate hikes.
Potential Time-of-Use (TOU) Rates: Evergy is introducing optional TOU rates for larger customers, which could signal a future shift for all residential customers. In such a scenario, battery storage could help maximize savings by utilizing stored solar power during peak rate times.

Solar Without Batteries — The Most Affordable Way to Go Solar

While batteries offer additional benefits, they are not necessary to install solar. For many homeowners, the most affordable way to go solar is by taking advantage of Evergy’s net metering program, which allows you to send excess electricity back to the grid and receive credits on your bill.

Key Benefits of Net Metering:

Reduce your electricity costs without needing battery storage.
Earn credits for the extra power your system produces.
Use the grid as virtual storageâ€”drawing from it when needed.
Start with solar now and add a battery later if desired.

Your solar system is battery-compatible, meaning you can always add a battery in the future as rates change or as new incentives become available. Many homeowners opt to install solar first and add a battery later when it makes financial sense.

Solar Plus Battery Storage: A Smarter Investment Than Ever

While solar alone will still help reduce your electric bill, adding a battery storage system can provide even greater protection against future utility rate increases.

Why Battery Storage?

1. Avoid Peak Rates: Store excess solar energy during the day and use it at night when rates are higher.

2. Energy Independence: Reduce reliance on the grid and safeguard against potential policy changes.

3. Backup Power: Keep your home running during outages and extreme weather.

If TOU rates are implemented in Kansas, batteries will allow homeowners to use stored solar energy when electricity is most expensive, potentially saving hundreds of dollars per year.

What Should Kansas Homeowners Do Next?

1. Understand Your Electricity Usage

Review your past 12 months of energy bills to assess your electricity consumption.
Consider how much your bill will increase if this proposal is approved.

2. Explore Solar + Battery Storage Options

Request a free solar savings estimate to determine your potential savings.
Investigate financing options like the 30% Federal Tax Credit and state/local incentives.

3. Act Before September 2025

Evergy’s rates won’t increase until later this year, providing you with time to install solar and lock in savings before rates go up.

Final Thoughts: The Cost of Inaction

If this rate increase is approved, Kansas homeowners will pay more for electricity, year after year, with no end in sight.

Conversely, homeowners who invest in solar whether with or without battery storage will be able to lock in long-term savings, reduce their reliance on the grid, and protect themselves from future rate hikes.

Kansas boasts excellent sun exposure and attractive incentives, making now an ideal time to explore solar energy before electricity costs escalate further.