What’s the Cost of Solar in Kentucky?

Cost of Grid Power

Kentucky's electricity prices average $0.11/kWh, below the national average of $0.14/kWh and slightly down from the year prior. Overall Kentucky has the ninth lowest electricity prices in the nation.

Cost of a Solar Install

The average cost of a 5.5kW (equivalent to saving about 100 trees a year) solar power system starts around $12,000 in Kentucky. That system would pay for itself through energy savings within 6-7 years. System life can span well over 25 years, and savings will improve with inflation.

Bluegrass, Blue Panels

Under Kentucky's net metering policy, utilities must give homeowners full credit for solar power put into the power grid. The Corn-cracker State also offers a $500 tax credit for residents as well. Customers of the Tennessee Valley Authority (TVA), also qualify for a a $1000 solar rebate and a feed-in tariff equal to the retail price of the electricity plus $0.02/kWh, which is better than net metering. However this is precarious, as in 2019 Kentucky passed a bill allowing the Public Service Commission to set the rate at which excess power generation shall be credited. The state has no renewable portfolio standard, or RPS.

The solar job sector grew by 20% in Kentucky in 2016. That year saw $22 million invested into solar installations, supporting over 40 solar companies employing over 1,200 people. The state now has nearly enough grid-tied rooftop solar to power 600 homes around the clock as if they were off-grid.

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What Incentives are Available in Kentucky?

Data from DSIRE. For more info visit: https://www.dsireusa.org/

Name	Implementing Sector	Program Type	Administrator	DSIRE ID
Solar Easements	State	Solar/Wind Access Policy		11
Net Metering Pilot Program - LG&E	Utility	Net Metering		1040
Net Metering Pilot Program - Kentucky Utilities (KU)	Utility	Net Metering		1041
Net Metering Pilot Program - ULH&P	Utility	Net Metering		1042
Net Metering Pilot Program - Berea College Utilities	Utility	Net Metering		1043
Interconnection Standards	State	Interconnection		1074
Electric Cooperative On-Bill Financing Program	Utility	Loan Program		4553
Columbia Gas of Kentucky - Low Income Furnace Replacement Program	Utility	Rebate Program		5238
Tax Credits for Renewable Energy Facilities	State	Corporate Tax Credit	Kentucky Cabinet for Economic Development (Dept. of Financial Incentives)	5328
Inter-County Energy Efficiency Program	Utility	Rebate Program	Inter-County Energy	5413
Inter-County Energy Touchstone New Construction Program	Utility	Rebate Program	Inter-County Energy	5414
Inter-County Energy Efficiency Loan Program	Utility	Loan Program	Inter-County Energy	5415
TVA - Solar Solutions Initiative	Utility	Performance-Based Incentive		5614
Cumberland Valley Electric Cooperative - Business Energy Efficiency Rebate Program	Utility	Rebate Program		5801
Taylor County RECC - Business Energy Efficiency Rebate Program	Utility	Rebate Program		5802
Farmers RECC - Business Energy Efficiency Rebate Program	Utility	Rebate Program		5806
Solar & Wind Siting Standards for Merchant Generators	State	Solar/Wind Permitting Standards		5856
City of Louisville - Go Green Loan Program	Local	Loan Program	Metropolitan Business Development Corporation	5885
City of Louisville - Go Green Loan Program	Local	Loan Program	The Metropolitan Business Development Corporation (METCO)	5916
Kenergy - Commercial and Industrial Services	Utility	Energy Analysis		14980
Kentucky Pollution Prevention Center - Technical Services	Non-Profit	Energy Analysis		14981
Warren RECC - Energy Management Audits	Utility	Energy Analysis		14998
Louisville Gas and Electric - Commercial Energy Analysis	Utility	Energy Analysis		16558
U.S. Department of Energy - Industrial Assessment Center (IAC): University of Dayton	Federal	Energy Analysis	U.S. Department of Energy	17066
Clark Energy - Commercial Energy Audits	Other	Energy Analysis		17158
Cumberland Valley Electric Cooperative - Commercial Energy Audit	Other	Energy Analysis	Cumberland Valley Electric Cooperative	17835
Hopkinsville Electric System - Technical Assistance	Other	Energy Analysis		17843
Jackson Purchase Energy Corp - Commercial Energy Suite	Other	Energy Analysis		17845
Big Sandy Rural Electric Coop Corp - Business Energy Solutions	Other	Energy Analysis	Big Sandy Rural Electric Coop Corp	19251
Kentucky Utilities - Commercial Energy Calculator	Utility	Energy Analysis		19409
Meade County RECC - Commercial Energy Calculator	Other	Energy Analysis		20076
Hopkinsville Electric System - Green Power Switch	Other	Other		20168
Kenergy - Commercial Energy Calculator	Utility	Energy Analysis		20382
Inter-County Energy Efficiency - Audit Services	Other	Energy Analysis		20935
Cumberland Valley Electric Cooperative - Net Metering	Other	Other	Cumberland Valley Electric Cooperative	20982
Farmers RECC - EnviroWatts	Other	Other		21062
Midwest Energy Efficiency Alliance - Midwest Industrial Initiative	Non-Profit	Energy Analysis	Midwest Energy Efficiency Alliance	21785
Midwest Energy Efficiency Alliance - Building Operator Certification	Non-Profit	Training and Information	Midwest Energy Efficiency Alliance	21791
U.S. Department of Energy - Industrial Assessment Center (IAC): University of Kentucky	Federal	Energy Analysis	U.S. Department of Energy	22038

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Resources

• The Kentucky Solar Energy Society
• Ohio Valley ReSource
• Kentuckians For The Commonwealth
• KY Solar Energy Industry Association (KYSEIA)