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Kentucky Solar Information

Kentucky isn’t a bad state for solar. There’s always enough sunshine to cover your basic energy needs or at least to reduce your monthly electricity bill. The 26% Federal Solar Tax Credit as well as some local incentives will make your solar installation even more profitable.
  • #31
    Kentucky ranks #31 in the USA for savings from installing solar panels
  • 5721.46 kWh
    Annual AC energy output of a 4 kW solar system installed in Kentucky
  • 4.93 kWh
    Solar Radiation (kWh / m2 / day)
  • 11 ¢ /kWh
    The cost of electricity today in Inter County Energy Coop
  • 24 ¢ /kWh
    If you don't go solar. The forecast average utility price over the next 25 years

Kentucky Solar Facts

  • $1.41
    Average cost of a 4kw solar power system in 2019.
  • 7 years
    Average system payback period.
  • $48,107.65
    Average lifetime savings.
  • 5 ¢ /kWh
    Levelized cost of solar energy.
  • 7 kW
    Recommended system size.

The Bluegrass State of Kentucky has a perfect location at the midpoint between the north and south of the country where temperatures don’t get too high in the summer or too cold in the winter. This helps Kentucky to get a lot of sunlight throughout the year, and all that sunlight represents potential savings if you go solar. Today the state uses mostly coal for its energy needs, but all the factors are in place for solar power to propel the state’s coal regions into a cleaner and more sustainable future.

Kentucky Solar Facts

  • BThe average payback period for solar panels in Kentucky is 5,7 - 7 years.
  • More than $19,000 can be saved over the 25 years of a solar system’s lifespan.
  • Kentucky residents receive 4-5 peak sun-hours per day on average.
  • Kentucky solar panels are eligible for a federal tax credit of 26%.
  • Solar Power System Cost in Kentucky
  • $1.41 per watt
  • $8,985.44 total
  • 7 years

The Cost of Solar Panels in Kentucky

As of November 2020, the average cost of a solar panel installation in Kentucky is around $2.34 per watt which is lower than the average price across the US. The total cost of a 6kW solar system will not exceed $10,398 after claiming the 26% federal solar tax credit.

Kentucky Solar Rebates and Tax Credits

Federal solar investment tax credit (ITC) – a governmental perk that allows all solar panel buyers to get 26% deduction of the installing cost from federal taxes. For example, if your solar system costs $15,000, your tax credit would be $3,900. Deduction will be lowered by 5.0% in 2021 and will be gone the year after unless new legislation is introduced.

Kentucky Solar Incentives

Kentucky Net energy metering (NEM) – this incentive allows solar users to send the surplus of produced power back to the grid in exchange for credits. When your solar panels produce more electricity than you need, your excess electricity will be sent to your utility company’s electric grid. Before 2020, NEM was one of the state’s best incentives that allowed solar buyers to get full retail credits for the excess amount of electricity they produced. However, starting this year the rate was lowered but remains yet to be fixed. The estimated amount of credit is expected to be 55% of the full retail credit. In other words, for 1 kWh you send back to your utility’s grid, you will be credited $.068 instead of the full retail rate of $0.124.

Tennessee Valley Authority utility (TVA) feed-in tariff – similar to the Net Metering Program, the TVA program offers a $1000 rebate for going solar and a feed-in tariff which is equivalent to the retail electricity price plus an additional $0.02/kWh. However, program benefits are available only for those who live in an area served by the TVA company.

Pros and Cons of Buying Solar Panels in Kentucky

Pros of Solar panels

  • Environmentally sustainable source of energy

    Solar panels are a clean and renewable source of energy that can help reduce carbon footprint and greenhouse gases. An average 4kW system will have the same benefit as planting 100 trees per year.
  • Cheap source of energy

    On average you will pay $0.10/kWh by purchasing energy from your local utility companies in the state of Kentucky, but by purchasing a solar system with an output of 400 watts per 4 hours you will save around $23,390 over the service life of your panels. Also, the local government is becoming more conscious about the impact of fossil fuels, so regulations could drive up energy prices soon. Over the past decade, electricity cost has already risen by 30%.
  • Increase in home value

    On average, solar panels add $20 of value to your property for every saved $1 on your electricity bill.

Cons of Solar panels

  • Lack of rebates and incentives

    Unlike many other states, Kentucky does not offer any rebates or incentives for going solar. The main reason is that the electricity price of $0.10/kWh in Kentucky is one of the lowest in the country, and therefore utility companies do not offer any solar rebates.
  • No tax exemptions

    there are no tax exemptions for solar power in Kentucky. Solar systems are subject to both sales and property taxes.

Is it worth buying solar panels in Kentucky?

Kentucky gets plenty of sunlight and has a favorable net metering policy for going solar. The outlook is even better if you are a Tennessee Valley Authority utility customer since you will get a $1000 rebate for your solar system installation together with a feed-in tariff.

Tell us how much you are spending on electricity and we’ll calcalute how much you can save if you go solar
According to Inter County Energy Coop, we received the cost of kWH in your area and calculated energy consumption based on an average electricity bill for 3 months.
I am claiming the 26% Federal Tax Credit (ends 2022) i

When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.

To be eligible to claim this credit, you must owe federal taxes.

System size

  • Mini
  • Small
  • Medium
  • Large
We recommended
6.37 kW medium system size
Provides up to 80% of electricity consumption
$1.41 per watt
Average system cost
  • image rec 3
    19 x 350 watt
    solar panels
  • +
  • image rec 3
    19 x 300 watt
    microinverter
  • +
  • image rec 3
    2 x 3 800 watt
    inverter
$86.48/ month
Estimated savings on your average quarterly bill
  • $8,985.44
    Estimated system cost
    Excludes 26% Federal Tax Credit.
    This price does not include the installation cost.
  • 7 years
    Average system payback period
  • $48,107.65
    Estimated utility savings

Example of 4 kW system calculation in Minnesota for electricity bill $100

  • 11 ¢ /kWh
    The cost of electricity today in Inter County Energy Coop
  • 24 ¢ /kWh
    If you don't get solar. The forecast average utility price over the next 25 years
  • 5 ¢ /kWh
    levelized cost of solar energy

Relevant product for your system

Entry-level solar panels x 19
$3,803.80
  • View
  • View
Entry-level microinverter x 19
$3,035.56
  • View
Entry-level inverter x 2
$2,560.02
  • View
  • View
In stock
Panasonic 340W Solar Panel 96 cell VBHN340SA17 Monocrystalline White - A1 Solar Store
Cell number 96 cell
DC/Charger Volt Compatible 12v, 24v, 48v
Price per Watt $1.07
Rated Power Output 340 W
Voltage (VOC) 71.3V
Cell Type Monocrystalline
Pickup at 2 locations or US shipping
In stock
Panasonic HIT 330W Solar Panel 96 cell VBHN330SA17 Monocrystalline Black - A1 Solar Store
Cell number 96 cell
DC/Charger Volt Compatible 12v, 24v, 48v
Price per Watt $1.03
Rated Power Output 330 W
Voltage (VOC) 69.7V
Cell Type Monocrystalline
Pickup at 2 locations or US shipping
In stock
Trina 330W Solar Panel 120 cell TRI-TSM-330DD06M-BK Monocrystalline Black - A1 Solar Store
Cell number 120 cell
DC/Charger Volt Compatible 12v, 24v, 48v
Price per Watt $0.56
Rated Power Output 330 W
Voltage (VOC) 40.6V
Cell Type Monocrystalline
Pickup at 4 locations or US shipping
In stock
Q CELLS 350W Solar Panel 120 cells Q.PEAK DUO G6+ - A1 Solar Store 16% Off
Cell number 120 cell
DC/Charger Volt Compatible 12v, 24v, 48v
Price per Watt $0.6
Rated Power Output 350 W
Voltage (VOC) 40.73V
Cell Type Monocrystalline
Pickup at 2 locations or US shipping