Kentucky solar 101: must read before you buy solar panels

The Solar Investment Tax Credit (ITC) allows homeowners to claim 26% of the cost of their solar power system installed until 2022 as an income tax deduction. For example, if your solar system costs $20,000, you are eligible for $5,200 (26% of the total gross cost) in tax credit. Solar system cost comprises not only the money spent on solar panels, but also freight shipping costs, professional installer fees, tools bought or rented and so on. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.

Solar laws in Kentucky allow any client of an investor-owned utility or a rural electric cooperative to participate in a Net Metering program. This gives solar adopters an opportunity to send the excess electricity back to the grid instead of storing it with a battery. When you sell your solar power to the utility, you receive credits that can be used to offset your next bills. In Kentucky their value is equal to full retail electricity price. When you send more electricity than you receive, these credits start accumulating. They appear regularly on your bills and may be carried forward indefinitely. The credits can’t be transferred, sold or retired.

A solar easement contract is a written agreement between you and some other party, for example, your neighbor. It serves to protect your right to access direct sunlight. A solar easement will safeguard your panels from potential impairments, such as vegetation or structures. It is voluntary and tied to the land, not the owner. Any such agreement must be created in written form and must meet the general requirements for legal contracts.

It is legal to install solar panels on your house in Kentucky. However, there are no specific laws in place to protect the residents from restrictions imposed by homeowners associations (HOAs). Thus, you may have to submit your project for approval before changing the exterior of your house. The board may ask you to hide the system from view, reduce the number of panels or just reject your proposal. Contact your HOA or study its declaration and rules to find more information.

Kentucky ranks high among the states where natural disasters hit most often. This includes floods, earthquakes, winter storms, tornados, etc. Solar panels can handle heavy rain, hail and even survive most hurricanes. The electricity your PV modules generate will be very welcome during power outages that inevitably accompany such events. In 2009, a winter storm wreaked havoc in Kentucky, leaving about 1.3 million people without power, in some cases for days. The Environmental Protection Agency warns that natural disasters like this will become more frequent and powerful, which makes adopting solar even more sensible.