Solar Incentives and Rebates in Kentucky

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.

What Incentives are Available in Kentucky?

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

Resources

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