Solar power 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.
Compare solar quotes from the top solar companies in Kentucky
Kentucky solar power facts
$2.73 watt
Average cost: 5kW solar power system
?8 Years 9 Months
Average payback time
$41,930
Average lifetime savings
?6¢ kWh
Levelized cost of solar energy
25¢ kWh
If you don't get solar
?9,986 kWh
Annual power production
Cash flow graph based on cash purchase of a 7.98kW system
This 7.98kW system would offset 100% of your energy usage if your typical monthly bill in Kentucky is $119, however, your situation may vary so try our solar calculator to get a result tailored to you.
How much can solar panels save you in Kentucky
Average total cost of solar panel installation in Kentucky
| System Size | Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $6,371 | $6,881 |
| 4kw | $8,288 | $8,951 |
| 5kw | $10,101 | $10,909 |
| 6kw | $11,855 | $12,803 |
| 7kw | $13,468 | $14,545 |
| 8kw | $14,978 | $16,176 |
| 9kw | $16,450 | $17,766 |
| 10kw | $17,760 | $19,181 |
How much do solar panels cost in Kentucky?
$2.73 per watt
Cash purchased solar system
Before 26% solar tax credit
$4.06 per watt
Financed solar system
Before 26% solar tax credit
$0.0¢ /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.
SolarPowerRocks provides a great breakdown of solar incentives and policy for each state within the US.
The disadvantage of installing solar panels in Kentucky is that there 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!
Best solar companies in Kentucky
Find local city information
Find local information for cities in Kentucky
Compare solar quotes from the top solar companies in Kentucky
Best brands of solar panels
To find the best brands of solar panels you can use America's most trusted solar panel comparison and reviews website, SolarReviews.
However, reviews of solar panels can be a bit meaningless because most consumer owners have not had any issues and so while solar company reviews are very important when choosing solar installers they are of less use when choosing solar panels.
For more information to help you make an informed decision about this topic, I would recommend this article about buying solar panels.
How much electricity will solar panels produce in Kentucky
Solar panels produce different amounts of energy in different locations.
Around the Frankfort area solar panels installed on a south-facing 30-degree pitch roof will typically produce:
1,357kWh
per year per 1kW of peak DC
(direct current) capacity
For more information about how your location, roof direction, and roof tilt affects solar power production use the solar panels calculator and enter your zip code.
I want to buy a solar panel kit and install it myself
What rebates, solar tax credits, and other solar incentives are available in Kentucky?
Net metering in Kentucky
Solar, by its nature, generates the most power during the middle of the day when most people are at work or school and little power is being used in the home. The net metering policy in Kentucky mandates that for every surplus kWh generated by solar (like the excess energy your system creates during the day) utilities must provide a credit that is equal to the full retail rate of electricity to offset costs on future bills.
In 2019, Kentucky ended their full retail rate net metering policy and switched to a “buy-all, sell-all” billing strategy. Kentucky solar system owners will now purchase all of the energy that their home consumes and sell all of the solar energy their solar panel system produces. Utilities can buy the solar energy at a price less than the retail rate of electricity.
No rates have been officially approved by the Public Service Commission yet, but some utilities have proposed rates as low as half of the retail rate of electricity.
Kentucky Solar Calculator
Regardless of what you want to know about the economics of installing solar panels for your home or business in Kentucky, we have a solar calculator that can show you exactly the information you require.
What you can find out about installing solar panels in Kentucky using our full monthly solar calculator
This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:
- What size solar system do you need?
- Answers the question of How many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in Kentucky
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in Kentucky or Frankfort ;
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC sol (home equity line of credit) and a zero-down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Kentucky solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Going solar in Kentucky
Check out all of the ways energy providers of Kentucky can help you be more energy-efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Renewable Energy Tax Credit | Federal | Personal Tax Credit |
| Net Metering | State | Net Metering |
| Tennessee Valley Authority - Green Power Providers | Utility | Performance-Based Incentive |
Find your local rebates and incentives
Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives is the solar installers who specialize in your area.
