Solar panels in Kentucky

Kentucky is one of the top five coal producers in the U.S., which may explain the state’s slower adoption of green alternatives like solar energy. According to the Solar Energy Industries Association (SEIA), only 0.32% of the state’s energy generation comes from solar panels, with enough solar installed to power about 17,200 homes. However, those numbers are expected to increase significantly. The SEIA predicts Kentucky will add another 3,331 megawatts (MW) of solar capacity in the next five years. 

Rising electricity rates have many Kentucky residents searching for ways to become more energy-independent and lower their electricity bills. Installing home solar panels in Kentucky comes with a big upfront price tag, but Kentucky solar incentives could make it a worthwhile investment. Keep reading to learn more about the cost of solar panels in Kentucky, potential savings, incentives, and more.

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Kentucky solar panel cost

The average solar panel cost in Kentucky is $3.65 per watt for a 9-kilowatt (kW) system, totaling approximately $32,850 before factoring in tax credits and incentives, according to Find Energy. Keep in mind that solar panel installations are customizable, and your costs will ultimately depend on the equipment and setup you choose.

According to data from the Lawrence Berkeley National Laboratory, Kentucky’s solar panel cost is similar to the national average of $3.67 per watt. The average cost of solar panels nationally totals around $31,558 for the typical 8.6 kW system. Kentucky’s average price is slightly higher because of the state’s larger system size.

The following table shows how the average solar system cost in Kentucky stacks up against the national average.

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

Are solar panels worth it in Kentucky?

Solar panels can be a good investment in Kentucky, but the amount you save depends on several factors. For starters, consider what you’re currently paying on energy bills. In 2022, the average Kentucky electricity bill was $141 per month or $1,692 for the year. If you invest in a solar panel array that completely covers your energy usage, you could save more than $1,600 annually. 

However, it’s important to note that Kentucky residents tend to use a high amount of electricity each month. Data from the Energy Information Administration (EIA) shows Kentucky households typically consume 1,094 kilowatt-hours (kWh) of electricity monthly compared to the U.S. average of 899 kWh. High energy consumption means you could save even more with solar panels, but it also means you would need to purchase a larger (and likely more expensive) system to cover your usage.

Every household requires a unique system size to meet their energy needs. The following table outlines a range of potential sizes and costs based on Kentucky’s average price per watt of $3.65.

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

Based on the average 2022 energy bill and cost of solar panels in Kentucky, the expected payback period for solar is within 14 years. Keep in mind that solar panels can last more than 30 years, so you could experience savings long after recouping your initial investment. Here’s how we calculated that payback period:

(Total system cost – 30% tax credit savings) ÷ Annual electricity bill costs = Payback period

22,995 system cost ÷ $1,692 energy bills = 13.5 years

Kentucky solar panel incentives

Solar panels are a substantial investment, and the cost may initially be intimidating. However, federal, state, and local solar incentives and rebates can help offset the upfront cost of buying solar panels in Kentucky.

If you install solar panels before 2032, the Residential Clean Energy Credit lets you claim a tax credit valued at 30% of the cost of your solar panels on your next tax return. This solar tax credit has no maximum limit and applies to solar systems installed on primary or secondary residences. Based on the average cost of solar panels in Kentucky, this credit could help you recover about $9,855.

The following table includes more details on Kentucky solar programs in 2023.

Solar panel incentives in Lexington

Homeowners in Lexington-Fayette County can apply to the Solarize Lexington program for a discount of up to 20% on solar panel wholesale rates. The program partners with Solar Energy Solutions, a solar installer in Kentucky. This program can help residents of Lexington access solar at a more affordable cost.

• All homeowners, nonprofits, businesses, and places of worship in Lexington-Fayette County may apply.
• As a first step in the process, fill out this interest form. Solarize Lexington will pre-screen your home to see if solar is a good fit, connect you with a representative from Solar Energy Solutions, and walk you through the entire solar installation process.
• Note that submissions to this program are currently closed for 2023. This program may reopen in 2024.

Solar panel incentives in Louisville

The Louisville Metro Government started a campaign to encourage the adoption of solar and help reach its goal of powering 100% clean energy community-wide by 2040. The Solar Over Louisville project partners with local installers to reduce the price of solar panels by 15%–23% and support local solar jobs.

• All homeowners and small property owners in the Louisville area and Jefferson, Oldham, Spencer, Shelby, and Bullitt counties are eligible to apply.
• Note that applications for this program were due July 31, 2023. The program is currently closed for the year, but check back in spring 2024 for another opportunity to apply.
• All homeowners and small property owners in the Louisville area and Jefferson, Oldham, Spencer, Shelby, and Bullitt counties are eligible to apply.
• Note that applications for this program were due July 31, 2023. The program is currently closed for the year, but check back in spring 2024 for another opportunity to apply.

Why choose Kentucky solar power?

Kentucky homeowners may consider solar generation for several reasons, including lower energy costs, energy independence, and environmental benefits. 

Lower energy costs

The potential to reduce your monthly energy costs is one of the most appealing benefits of installing solar panels. You can save thousands on electricity costs after your system’s payback period and potentially boost your home’s value by $15,000. 

Increase energy independence

Powering your home with solar panels also helps reduce your dependence on the Kentucky power grid, which means you could be less affected by energy rate increases. Adding a solar battery to your system can help you keep the lights on during power outages by storing extra generated power. Kentucky law also allows you to completely disconnect from the grid if you want an off-grid solar system. 

Go green

If you want to reduce your carbon footprint, solar power is a clean and green energy source. While traditional electricity uses fossil fuels to power your home,solar energy is a renewable resource that does not emit greenhouse gasses from energy production.

Should I buy or lease my solar panels?

Long-term energy savings and additional home resale value make solar panels a worthwhile investment, but you will save a lot more over time if you buy solar panels in Kentucky instead of leasing them. If it’s not currently feasible for you to buy rooftop solar panels outright, you can consider a number of alternatives, such as solar loans, leases, power purchase agreements (PPAs), or community solar projects.

The following table explains the pros and cons of various payment options to consider when going solar in Kentucky. Review the benefits and drawbacks to determine which path is best for your household.

Kentucky solar panel companies

There are currently 15 solar installers operating in the Bluegrass State, which is fewer options than many other states. However, several of these companies operate at the national level and have years of experience installing residential solar systems. When shopping for a solar installer, it’s essential to familiarize yourself with the industry, companies, and products available. You can explore our guide about finding the best solar panel companies for your home to help inform your decision.

Solar installer	Year founded	Financing options	Warranty terms
Blue Raven Solar	2014	Cash purchase or solar loan	2-year system warranty; 25-year product warranty; 10-year quality of work guarantee
	2018	Cash purchase or solar loan	30-year performance warranty, 25-year panel warranty, and 25-year quality guarantee
Solar Energy Solutions	2006	Cash purchase or solar loan	25-year production guarantee, 3-year parts and labor warranty
	1985	Cash purchase, solar loan, or lease	25-year full system warranty

SaveOnEnergy partners with vetted, top-tier solar companies to bring you curated solar options. Fill out the solar estimator on this page to learn more about how much you could save with solar. You can also call the number on your screen to connect with a solar advisor.

What to consider in a solar contractor

When searching for a trusted solar contractor, you’ll want to find a licensed installer with a history of positive customer reviews. Solar companies should be accredited by a trusted organization such as the North American Board of Certified Energy Practitioners (NABCEP). 

The efficiency of your solar panel system can influence your long-term energy savings. Consider what materials a solar installer uses to determine whether the solar panels, inverters, and additional solar products come from reputable manufacturers. You should also be sure to check an installer’s warranty terms.

You should seek out at least three solar quotes to compare their total prices, warranties, and additional offerings. A top-tier installer should have strong warranties and provide regular maintenance options for your solar panels.

Free solar panels in Kentucky scam

Unfortunately, solar panel scams have become more common across the nation. Scammers may promise free solar panels in an effort to steal your information or money. Some reputable solar companies may send sales agents door to door, so be sure to ask for identification and confirm they actually work for a reputable company before discussing details about your home.

Some installers offer zero-down solar loan options. Keep in mind that a zero-down loan is not the same as free solar panels and may actually lock you into an unfavorable contract with a high interest rate. Thoroughly read the details of a solar loan before signing any contract.

Important solar installation factors to consider

Beyond financial considerations, it’s important to examine several other factors before installing solar panels in Kentucky, including:

• Access to sunlight: Solar panels require at least four hours of direct sunlight per day to operate efficiently. If your roof is heavily shaded or does not receive consistent sunlight, your solar production will be lower. Consider removing any obstructions.  
• Roof condition and panel placement: Your roof will require maintenance if it is old or damaged, which can add to the cost of your project. According to the Department of Energy, you should place solar panels on south-facing roofs with slopes between 15 and 40 degrees for optimal energy production.
• Local laws or HOA rules: Check local laws and homeowners association (HOA) rules before installing solar. Kentucky’s solar easement laws encourage installation, but HOAs may have restrictions or regulations for placement. Solar installers can help you navigate these requirements to move your project along smoothly.