Kentucky solar rebates and tax credits calculator

Solar incentive

Federal ITC 26% (tax credit)

State tax credit: No

Net metering (by utility)

Calculate for your homes location

There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.

Summary of Kentucky solar incentives 2020

In 2019, Kentucky lawmakers enacted Senate Bill 100, which guts net metering rules in the state. We’d like to say we’re hopeful there will be an improvement here for 2020 and beyond, but new governor Andy Beshear has a lot bigger fish to fry. We’ll keep our eyes peeled for any movement, but don’t hold your breath.

On this page, we cover all of the solar and battery incentives, rebates and tax credits available for your Kentucky home. We also encourage you to use the Kentucky solar incentives calculator above. It allows you to drill down and show only the solar incentives that are applicable where you live.

On this page, you can:

  1. Learn what solar incentives are available to Kentucky homeowners

  2. See what Kentucky solar incentives you qualify for based on your utility company and city

  3. Find out how much these incentives and/or Kentucky solar tax credits will reduce your cost to go solar and add batteries

Federal solar investment tax credit

The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Kentucky

This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% off the entire cost of the system including equipment, labor and permitting.

Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 26% = $5,200.

The federal tax credit falls to 22% in 2021. Unless new legislation is introduced in Washington D.C., this program will be gone in 2022.

Net energy metering in Kentucky

With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.

With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.

Before 2020, the net metering policy in Kentucky was probably the best individual law in the state to help make home solar power here compelling.

While net metering used to be required by all utilities in the state, that law has been scrapped, in favor of regulators being able to set new rates to pay solar owners for their excess generation.

All surplus electricity generation will now no longer be credited to your next month’s bill at your utility’s full retail rate, instead this rate will be much lower. The rate has not yet been determined by the Kentucky Public Services Commission.Estimates for 2020 and beyond show the bill credit amount at 55% of retail rates. That means, for every kwh you send back into the grid with your solar panels, you’ll be credited $.068 instead of the full retail rate of $0.124.

Regardless, at least that is some credit for the solar power you aren’t able to use. However, it’s now more important than ever to properly size your solar energy system well, and perhaps look into installing onsite energy storage so you aren’t sending power back to the utility for reduced credit.

Learn more: Kentucky’s net metering law changes and what they mean for you

Kentucky solar rebates

While Kentucky does not have a dedicated state rebate for solar panel installation, some manufacturers like LG offer their own solar rebates. These programs are usually time sensitive. For example, LG offers a $600 solar rebate on their equipment, which your installer can help you redeem over the next year.

Cost of solar panels in your part of Kentucky after all applicable solar incentives

Solar prices near you

Cost range of local prices

$17,260-$21,096

Payback period

10-12.2 years

Net profit (savings less system cost)

$31,361-$38,330

Average size system installed in KY in 2020

11.4kW

Solar panel cost calculator

Best 10 solar companies in Kentucky

6 solar companies in Kentucky provide pricing on SolarReviews. Here are the best rated companies near you.

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