Solar power in Kentucky has been growing in recent years due to new technological improvements and a variety of regulatory actions and financial incentives, particularly a 30% federal tax credit, available through 2016, for any size project. Kentucky could generate 10% of all of the electricity used in the United States from land cleared from coal mining in the state. Covering just one-fifth with photovoltaics would supply all of the state's electricity.
The Berea Solar Farm is a community solar farm, which opened with 60 235-watt solar panels (14.1 kW). All of the available panels sold out in four days.
A 2 MW single axis tracking solar farm began operation in 2011 in Bowling Green. As of 2011, the largest system on any farm in the state was the 100.32 kW array completed on November 1, 2011, in Fancy Farms. The first hospital in the state to use solar power is Rockcastle Regional Hospital in Mt. Vernon, which installed a 60.9 kW array on the roof in November, 2011.
In 2015, Fort Campbell installed a 1.9MW solar farm that provides 10% of the electricity used by the base.
Kentucky's only maker of solar panels is Alternative Energy Kentucky.
When you install your 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 being phased out by 2022.
Most people are eligible to claim this credit (you must owe federal taxes to be eligible).