Solar Energy in Kentucky

Kentucky residents don’t have access to as many solar incentives as residents in other states. Although there is room for improvement in the realm of solar incentives, Kentucky does have a great net metering policy that gives customers a credit on their utility bill for the full retail value of each excess kWh their solar system produces. 

The combination of the 26% federal tax credit and net metering creates the potential for a ton of savings on solar system installations in Kentucky. 

Kentucky Solar Power Facts

$2.73 watt

Average cost: 5kW solar power system.

Average Payback time

On average it takes 8 Years 9 Months to pay back the system.

Average Lifetime Savings

On average, solar power can save you $41,930 over your lifetime.

6¢ kWh

This is the levelized cost of solar energy.

25¢ kWh

This is the levelized cost of energy without solar panels.

9,986 kWh

Annual power production of home solar panels.

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How much do solar panels cost in Kentucky?

$ 0 per watt
Cash purchased solar system​

Before 26% solar tax credit

$ 0 per watt
Financed solar system

Before 26% solar tax credit

$ ¢ /kWh
Lease/PPA

Ave 15 year term, 2.5% price escalator

What are the pros and cons of installing solar panels in Kentucky?

The advantage of installing solar panels in Kentucky is the state-mandated net metering requirement. Utilities must offer kilowatt-hour (kWh) credits to their solar customers for excess energy generated by their solar systems.

The disadvantage of installing solar panels in Kentucky is that it is very little in the way of state and utility-based incentives. Also, Kentucky recently enacted a new law that drastically changes the future of net metering. Starting in 2020, new net metering customers will not receive the full retail rate for excess energy their solar system produces.

With the 26% federal tax credit, the best time to go solar in Kentucky is right now!