Reduce Cost of Solar Panels in Kentucky: Solar Incentives, Tax Credits

Georgette Kilgore headshot, wearing 8 Billion Trees shirt with forest in the background.Written by Georgette Kilgore

Solar Panels | March 15, 2024

Man with solar panels on his home collects cash from Kentucky solar incentives which lower the cost of solar panels in kentucky using the solar tax credit, solar rebates, REAP and Kentucky property assessed clean energy (PACE) programs.

Kentucky solar incentives are emerging at a time when the state is struggling with low solar ranking, and there is a push to reduce the cost of solar panels in Kentucky.

The rising costs of energy in the state have prompted many property owners to look for alternative answers to lowering their utility bills, and with solar options increasing, the you can find ways to significantly reduce your household expenses and your household emissions using home solar panels.

Energy rates have been on an upward trend over the last few years, forcing the residents to finally start thinking about viable alternatives.

Fortunately, renewable energy has proven time and again that it fits the bill, not just because it is cheaper in the long run but also because the carbon footprint solar panels is much lower than that of fossil fuels.

If you had doubts about going solar before, this article might help you make up your mind as it explores all the details about renewable energy in Kentucky.

This guide explains Kentucky solar incentives that are available now that can reduce the cost of solar panels in Kentucky for both residents and businesses.

Solar Power in Kentucky: Solar Farms

To be very direct, Kentucky is one of the worst states for solar energy, coming in at number 46, it is in fact in the bottom five out of all the other states, and there are several logical explanations for this.

For one, the electricity rates in the state are not as high as those in other regions, therefore, makes investing in solar not very attractive to the people.4

The good news for solar power is that the rates have been going up in the past few years, making people seek alternatives. As a result, experts are convinced that the industry is going to grow gradually, and why the sudden change?

Simply, the introduction of lucrative Kentucky solar incentives. Solar panels have had a reputation for being pretty costly, but government interference is making that a thing of the past as more and more people are finding ways to slash the prices and pay less for the installation.

What’s more, the weather in Kentucky is quite favorable for solar panels because the winters are not too cold and the summers are not extremely hot. Although the sunny days are slightly below the national average, at 189 against 205, it is still a great location to set up panels.

Some of the sunniest cities in the region include Paducah, Louisville, and Lexington, with 198, 195, and 190 sunny days annually, respectively.

Besides, the ever-expanding technological advancements and favorable government policies have contributed to the creation of multi-million dollar solar farm projects in the state.

Map showing locations of solar plants in Kentucky using yellow markers and Kentucky solar panels with a US cut out showing the location of the state of Texas.

Some of the largest facilities include the 100 kW plant in Fancy Farms, Fort Campbell’s 1.9 MW installation, and the largest of them all that is still under construction, the 200 MW Martin County Solar Project. Such progress only goes to show just how much solar power potential lies in Kentucky.11

How Much Are Solar Panels in Kentucky? (Cost of Solar Panels in Kentucky)

The first question you, or virtually any other Kentuckian, would ask when contemplating going solar in the Bluegrass State is, how much does the entire project actually cost?

This is important because you should know whether it is within your budget or not and what you can do to make it happen anyway.

Graphics of cost of solar panel installation in Kentucky showing technicians installing a solar panel system on a house atop a cutout map of the state of Kentucky and the average cost at the bottom.

So, installing solar in Kentucky will set you back anything in between $13,100- $22,900, that is depending on individual needs and preferences. This value assumes that the system’s size is 11 kW which is what many homeowners find to satisfy all their energy needs.

But still, based on your installer’s advice, you can also go for a smaller system, only as long as it serves all your needs.

You will notice that the cost of solar panels in Kentucky is kind of lower than that of the national average because it is still pretty considerable for an 11 kW system.

That is because, in comparison to the $ 2.66 rate per watt, which is the nation’s average, it will only cost you $2.34 for each and every watt you install in Kentucky.

It is interesting how far the costs have come over the last decade because, looking at the difference, there has been more than a 50% drop to date.

Ten years ago, you would have parted with more than $50,000 to buy your solar system,8 but as you can clearly see, it is now way more affordable. Much more so now that there are more solar incentives to take advantage of.

How To Use the Solar Panel Cost Calculator Kentucky

It is understandable that as your first time buying solar panels, you may not know exactly where to start. It may seem overwhelming at the start, but the solar cost calculator is the tool that you need to kick off your journey as a new solar panel owner.

But how? It acts like a guide to tell you how many panels you need and how much they are supposed to cost you.

You will probably run into several of them online, each with a unique design to provide you with the answers that you need. They all basically have the same format, the software asks you vital questions about your home and energy needs, and you have to give accurate details.

Say, for instance, the tool wants to know where your house is located, what is the size of your roof, or how much energy you use in a normal month.

When you feed in these details, the system will make the relevant calculations and provide you with the answers. It is these very details that will help you make a more informed decision when you are ready to start the groundwork and look for a solar company.12

You will know how many panels the installer will need, how much the installation may be, and other information based on how the system is designed.

Factors Influencing Solar Panel Installation Cost Kentucky

Are you asking yourself, why are solar panels so expensive?

Well, going by the market trends in Kentucky, installing the system is actually cheaper there than in other states.

An electronics engineer on the left and four other individuals work together to set up and try out a retractable solar panel racking system as support to the solar panels.

(Image: U.S. Navy photo by Greg Vojtko/Released22)

Besides, it doesn’t always mean that the price will be within the estimated range; there are very high chances that you will actually pay way less for your system.

Every home is different, and everyone has specific needs, which more often than not determine how much they will spend on their panels. Below are the factors that usually influence how much homeowners spend on buying their panels.

Energy Needs

Probably the most obvious determining factor. Some homes have very high power needs, and it is easy to tell if you fall in the category if you usually receive high energy bills from your utility company.

If you are talking about over $1,000 every month, then you may need to brace yourself for the high cost of installation.

In simple terms, the more power you need, the bigger the system you will need. And it is easy to see that the bigger the system, the more expensive it will be because it means more panels and equipment and a longer time to install.

Choice Equipment

Apart from the system size, another crucial factor that you should always take into consideration is the type of equipment you are going for. There are various solar companies in the region, and each creates distinct equipment that is priced differently, mainly based on their performance.

The highest quality and most durable versions are obviously more expensive.

If you settle for them, you will have to pay more for your installation. Given that Kentucky tends to receive less sunlight than the national average, you may have no choice but to go for highly effective panels that will work optimally despite weather issues.

But remember to only go for reasonably priced systems if you are on a budget, even as you look for high-quality ones.

Choice Solar Company

Who you hire to get the job done makes a whole lot of difference. There are many companies distributed all around the state, and you can easily go for a cheaper or overpriced brand unless you do your due diligence.

The installers set their labor rates and charge particular amounts for their equipment, and it is up to you to find which one has more reasonable rates because otherwise, the entire project may end up being unnecessarily too costly.

Financing Method

Can you believe that paying in cash upfront is the cheapest way to finance your panels? It doesn’t sound true until you get down to calculating how expensive loans can actually get.

Whether you get a solar or personal loan, you will have to consider the interest rates and complete the payment first before you can start counting real savings from using the system. If you are able to pay in cash, it is the most convenient and cheapest method of financing your solar panels.13

Why Kentucky Green Energy?

There is a reason why lobby groups and the government are pushing for clean energy in residential and commercial settings.

Solar panels installed on the rooftop of a building showing the best angle for solar panels with a US cityscape in the background.

(Image: U.S. Department of Energy23)

If you choose to go solar in Kentucky, the following are the benefits that you are going to enjoy.

  1. Less Energy Costs: Maybe the number one reason why more and more Kentuckians are going solar is the fact that the energy bills keep going up. If you want cheaper energy and avoid receiving astounding monthly utilities, installing solar panels may be the best way to go.5
  2. Energy Independence: There is nothing as amazing as not fully relying on the grid.
    Blackouts and interferences can happen, leaving you in the dark, but do you know how to avoid this? Simple, going off-grid and fully dependent on your own power source, energy from your panels.
  3. Home Value Appreciation: One thing that many first-timers are not aware of is the fact that installing solar panels is an excellent way to get your home’s value to increase.
    But how much does solar increase home value? Get this, more than 4%, for just converting to solar power.
    As a matter of fact, if you live in a high-cost area like Lexington, your property’s value will likely increase much more than that.
  4. Clean Energy: Are you eco-conscious and worried about your household’s carbon footprint?
    The solution is to make the switch to solar energy. It is cleaner than fossil fuel, and you will never have to worry about excessive GHG emissions.
    In addition, when the panels are decommissioned, you can always send them to local solar panel recycling companies that are usually distributed around the state for safe handling.

How Does Kentucky Solar Save You Money?

Many prospective solar panel buyers get conflicted about going solar, thinking about the upfront cost and wondering whether it is even worth it. It may come off as a costly investment at the start, but choosing solar over fossil fuels will help you save a fortune, especially in the long run, which is the goal anyway.

What you are looking for is a way to reduce your energy bills and, fortunately, later on, completely offset them, and that is exactly what the move offers.

For one, you will stop worrying about high energy bills and start saving your money as early as the first day after installation. Down the line, you will count all the money you would have otherwise spent to pay your utilities and realize just how much of an investment your panels are.

That’s not even all; if you are able to apply and be successful with the Kentucky solar incentives, you will pay even lower than you expected.

And the best part about that is how the payback period of your panels reduces. The more money you are able to slash off the project in terms of rebates and incentives, the faster your panels will pay themselves off, and you will actually be making a profit off of them.

Kentucky Solar Incentives and Renewable Energy Consumption

Solar rebates from the government are no doubt the secret ingredients to the success of the solar market,14 not just in Kentucky but also in the entire country.

The best way to make renewable energy seem more appealing to the consumers is by making it more affordable, and that has been possible thanks to the Kentucky solar incentives.

Pie chart showing Kentucky renewable energy consumption including Kentucky wind energy, biomass energy, geothermal energy, hydroelectric energy and solar energy in the state of Kentucky for 2022.

Now investing in solar power looks like the best move ever because you won’t have to spend a fortune, and credit goes to the programs below.

The Federal Solar Tax Credit or The ITC

Starting off the list is none other than the very famous Federal Solar Energy Tax credits or more commonly referred to as the ITC.

It is the first in the list with good reason because as you are about to find out, it is probably the first incentive that you should be applying for, not just as a Kentuckian but as long as you are a taxpaying US citizen.

It all started in 2009 when the bill was passed, allowing all new solar panel installers to receive a tax credit that would help them save more money when installing their systems.

If everything were to go to plan, the ITC would have expired by the year 2024, but not yet, all thanks to the Inflation Reduction Act that had it extended in 2022, giving you a whole 30% tax credit for installing the system.

Here is how it really works: if you spend $20,000 to install the panels, you will be eligible for a 30% tax credit or $6,000 tax deduction when you file your taxes.2 A common mistake made by first-timers is expecting that the ITC is a cashback, not even close because it is applied to your tax liability or the amount of taxes that you owe.

And if you are asking how does the solar tax credit work if I don’t owe taxes, you need to know that unless you have a standing debt to the government in the form of taxes, you cannot get the credit, but you can carry it forward for the next fiscal year.

Kentucky PACE: Property Assessed Clean Energy

Kentucky as a state also boasts of a special program called the Property Assessed Clean Energy (PACE) that helps homeowners afford solar installation.

Aerial shot of solar panels installed on the roof of building structures with the sunlight directly hitting the solar panels to gather renewable energy from the sun.

(Image: U.S. Department of Energy Photo by Chris Collins 24)

In exchange, they are supposed to pay it back through a property tax assessment that is actually voluntary. The money for this program comes from private capital, and in return, the beneficiaries pay it back as one of the items in their property taxes.

The main reason why it is an attractive program is due to the fact that it has low-interest rates and the upfront money expected from you remains very low, easy for any household to fund.

Besides, it has an excellent method of just allowing you to pay using your property tax bills. If you are lucky enough to qualify for this, you can easily enjoy up to 100% financing, and the best part is how the interest rate remains constant for as much as 30 years.

It is crucial to point this out, that PACE doesn’t touch your credit.15 If you are afraid of ruining your impeccable score, you don’t have to worry because the incentive simply links itself to your property, not to you as an individual.

As if that’s not enough, PACE is also known to give homeowners a one-year grace, then later let them start making payments.

Within that one year, you are still free to apply for the federal solar tax credit and start making savings as soon as possible.

Note that PACE is only available in a few select regions, and if you want to see whether you can get it, you can head over to KYPACE’s official website.9

Kentucky Incentives for Energy Independence

Many incentives focus more on the residential aspect of solar panels and forget that the systems also have commercial uses. The Kentucky Incentives for Energy Independence understands that the panels are also very important for businesses and large-scale use and solely focus on commercial customers.

If a company is successful in receiving this incentive, it will be able to enjoy several incredible perks. For instance, the program offers up to 100% sales and use taxes which you will find invaluable in reducing the upfront cost of commercial panels.

They can also get up to 100% tax credits for the cost of the panels and, lastly, incentives in the wages for employees that are applied to each and every staff member.

It is an excellent idea to have an incentive that exclusively targets the commercial sector because you can imagine how expensive the cost of commercial solar installation must be for massive systems.

There is only one issue, though, the incentive is quite expensive to apply for and takes quite some time. Therefore, it is only perfect for you if you feel like you have a great shot at getting it.

Net Metering

Net Energy Metering (NEM) is one program that has been in effect in various parts of the country for the longest time now. Many homeowners will admit that they are actually looking forward to it to help them save on their energy bills and reduce the payback period of their panels.

Currently, Kentucky mandates all the utilities that are owned by investors to provide the service to their customers.

The only provider that is not included in this is the Tennessee Valley Authority,6 and if you are not a customer, you will likely get the best retail rate on your NEM. The rules surrounding net metering usually vary according to the state, and there are chances of getting lower rates than you would expect from your service.

It is especially true for Kentuckians since the state doesn’t have strong RPS (Renewable Portfolio Standards) to protect the customer. But still, you can make proper use of it to reduce or offset your energy bills.

But how does net metering really work?16 To put it very simply, you “sell” the excess power that your system generates to the grid, and in exchange, you receive traditional electricity and credits that you can use to pay for the energy bills if what you use is more than what you generate.

Local Kentucky Solar Incentives

The local solar and utility companies have also joined in on the fun to help make solar power more affordable for the residents.

Apart from the state and nationwide incentives, you are also likely to receive a boost based on your utility company and your location.

Closeup of a part of a solar panel array in a solar farm showing the top layer of the solar panels and ground-mounted solar panel racking system with the sky in the background during sunset.

(Image: U.S. Department of Energy Photo by Lucia Bourgeois25)

These local programs are not really all-inclusive solar rebates like the ones above, but they can go a long way to help you access renewable energy. Below are a few of them.

  1. Duke Energy Rebates: The utility company offers its customers about $450 for installing solar water heating and HVAC systems.
  2. Blue Grass Energy Cash-Back: Customers of this company are eligible for as much as $750 for setting up solar-powered heat pumps and other energy-efficient systems.
  3. LG&E and Kentucky Utilities Rebates: These two companies also offer their loyal customers around $750 for just setting up solar cooling and heating systems.
  4. Cumberland Valley Electric Rebates: This utility provider is also not left behind as it offers customers $50-$1,300 for obtaining solar-powered systems, whether heat pumps or any other appliance.

Federal Solar Tax Credit as One of the Kentucky Solar Incentives

You will find the federal solar tax credit on every list of the available solar incentives in every state because it is nationwide. It is very popular among homeowners, and it is easy to see why.

It is also a top choice for Kentuckians because there is virtually no other program that will help you slash a whopping 30% out of your solar panel installation; only the ITC can do that.

What you are looking at is more than $5,000 in terms of savings or a deduction of almost a third of your total installation cost. Who would jump at the thought?

All you have to do is just a little paperwork through filling out IRS Form 5695 when filing your taxes, and you will be good to go.21

But one thing to remember is that this program only applies after you have completed the entire project, not before.

Number two, this money will apply to the amount of money that you owe the government as taxes, so don’t hope for a cashback. The system should also be brand new, straight from the company, not second-hand equipment.

Lastly, you should be able to claim full ownership of the system, and as such, it should not be a product of solar leasing or borrowed.

Does Kentucky Solar Tax Credit Exist?

Looking at the federal solar tax credit and how effective and efficient it is in lowering the cost of solar panels in Kentucky,17 you can’t help but wonder, is there a solar investment tax credit (ITC) specific to the state?

It is not a far-fetched idea because quite a few places have the incentive in place, and it has worked tremendously alongside the Federal ITC.

While you can get 30% at the national level, the state might also be able to deduct another percentage, say an extra 25%; how enticing would that be?

Imagine having to pay only slightly less than 50% for your panels and let the government bear the burden of the rest. It can’t get any better than that.

Wouldn’t that be a total dream come true for Kentuckians?

Sadly, there is currently no Kentucky solar tax credit or an ITC specific only to the state. For now, you will have to try and apply for the available incentives, with the Federal ITC bearing most of the cost.

Maybe if there were a statewide tax credit, Kentucky would be flying high with the other top solar states.

How Does Kentucky Net Metering Reduce the Cost of Solar Panels in Kentucky?

Kentucky net metering in the past few years was under a lot of contention, with Kentucky’s PSC proposing that the tariffs for each consumer reduce to at least 75%, which caused a lot of uproar.10

Areal shot of a solar panel system installed on the roof of a big residential house, capturing sunlight for renewable energy generation.

(Image: U.S. Department of Energy Photo by Senthil Balasubramanian26)

But still, all in all, that doesn’t take away from the fact that net metering is a valuable state incentive that helps you save money in so many ways. Why else would so many people be interested in using the service?

The use of net metering can be a little confusing, and you should know exactly how it works to get a better picture before signing up for it.

For one, the state mandates that all utilities that are investor-owned to offer the service to their customers as long as their system is at least 30 kW large, which is what many homes have anyway.

But how does it work to save you money? You see, for instance, when you link to the grid with Kentucky Power, you can be able to enjoy up to $0.09 worth of credit for each kWh.

On the other hand, the rate is slightly lower for LG&E and KU customers because the rate is set at $0.07 for each kWh.

This way, the more credits you pile up, the more money you will be able to save on your utility bills; it is just unfortunate that the amount isn’t exactly as it was back then.

What You Should Know About Commercial Kentucky Solar Program

It is not common to find a state solar incentive that is focused more or entirely on the commercial aspect of solar power.

Many of them are more interested in residential conversion rates, forgetting that commercial solar panels Kentucky are also worth investing in and that they actually make a lot of difference because industries are responsible for a lot more carbon emissions.

Maybe companies find them more expensive to incentivize, but still, that hasn’t stopped the Kentucky Incentives for Energy Independence from doing its job,18 a great job at that.

It is one of the few programs that work entirely for the commercial sector, helping businesses afford solar panel installations.

It offers tax and sales exemptions, severance tax programs, and tax credits, all in a bid to make the conversion to solar power easier.

If you are interested in it and want to apply, you can head on to the Kentucky Economic Development Finance Authority’s official website and fill out the form. They charge a $1,000 non-refundable fee, and the administration fees can go up to $50,000.

However, these amounts are nothing compared to how much you will be saving in the long run as a commercial solar panel owner.

Some will find it a little too expensive to apply, which is why experts advise that you patiently check whether you qualify and actually have a great shot at getting it before you apply.

What Are the Best Kentucky Solar Rebates?

You now have a list of all the available Kentucky solar incentives; they are quite a number, although not as many as those in other states.

You may still wonder about which ones are more lucrative and more worth applying for as a first-time solar panel owner. The goal is to save as much money as possible, and you need to narrow down to the incentives that help you achieve that.

Perhaps the biggest return on your solar panel installation will come after receiving the federal solar tax credit. It is no wonder that it is the first on virtually everyone’s list as the most attractive incentive in the country, and there are numbers to prove that.

You can imagine how many more people have converted to solar over the past decade or so just because of the ITC.

It is the only program that offers you 30% off your installation and caters to everything, from the equipment to the labor costs.

It is also pretty easy to apply for and takes just a few minutes, and you will be able to save more than $5,000 or much more, depending on your system size and cost.

Another incentive that you cannot afford to ignore is net metering. As long as you are not a TVA customer, you are eligible to link to the grid and receive credits to help offset the cost of your energy usage.

The best part about this program is how it maximizes your savings, particularly in the long term, all the while lowering your energy bills. But most importantly, it helps you reduce the payback period of your panels.

What Are the Available Solar Panels Grants in Kentucky?

Solar panel grants have an excellent way of reducing the cost of solar panels in Kentucky because they directly help you receive the equipment that you need without the worry about high-interest rates or large down payments.

Closeup shot of solar panels showing solar panel layers including the glass cover and the solar cells.

(Image: U.S. Department of Energy Photo by Paul Krashefski27)

Unfortunately, there is no statewide grant in Kentucky but not to worry because there is one from the USDA.

US Rural Energy for America Program (REAP)

The United States Department of Agriculture offers a nationwide solar panel grant through the Rural Energy for America Program,19 more famously known as REAP.

How does REAP work?

Simple. It targets small rural businesses, particularly those in the agricultural field, and provides grant funding and loan financing.1

It is a pretty highly sought-after program that many businesses apply for and hope to receive. To be able to qualify for it, you have to be an agricultural business and must make sure that at least half of your income comes from agriculture.

Alternatively, you can also apply if you own a growing business that operates in rural regions that are eligible.

How To Use Government Solar Programs and Kentucky Solar Incentives To Reduce the Cost of Solar Panels in Kentucky

The government solar incentives are an excellent idea because they have a strong and direct impact on the rate of conversion to solar power.

As you can tell, there has been a massive switch to solar, especially after the introduction of incentives like the federal solar tax credit. More and more homeowners are finding it easier to invest, knowing that they will not really have to pay full price for their systems.

If you want to convert to solar power, the best way that you can make savings is by applying for these incentives. It is a great idea because each has a special mode of operation, whether it is a tax incentive, cashback, credit transfer, loan, or any other system.

Now all you have to do is know how to apply for them, as many as possible to help increase your chances of success.

First, check whether you are eligible because some homeowners spend a lot of time applying for programs that they don’t qualify for and have slim to no chances of getting.

If you want a better shot at saving money, you want to focus all your energy on the services that you are sure you are going to get. You should also know how to apply and even if you don’t you can always get an expert to help.

Kentucky Solar Laws and How They Affect the Solar Market in Kentucky

Kentucky solar laws have been a very important part of the solar market because they are the ones that determine what happens next.

Wide shot of solar panel installations and wind turbine situated on a plain with the mountain and cloudy sky in the background.

(Image: U.S. Department of Energy28)

If the rules are favorable, the industry will likely grow and climb up the rankings leaving the worst solar states behind. So what solar laws in the region have had an impact on the market?

The first one has got to be the Kentucky Solar Zoning Ordinance, which has gone a long way to regulate which solar companies are operating in which region of the state.

This method has been in use in various states in the US and has had massive success, mostly in achieving two things.

One, it was able to meet all of Kentucky’s solar requirements, and two, it helped protect the rights of the landowners who had a say in what would happen to their land.

This law may have been in favor of the residents, but one thing is missing, the fact that Kentucky currently doesn’t have Renewable Portfolio Standard.20

Based on what is happening in the top solar states, this is the one key ingredient in the solar success of a state.

The top states have strong RPS because it kind of forces companies to have a certain percentage of their power generated from renewable sources.

Without that, the push needed to improve the state of solar is lacking, and companies are free to produce power from fuel-based sources for as long as they want.

Before Your Solar Panel Installation

It is understandable that you would be excited about your new solar panel installation. You finally get the chance to avoid the ever-rising energy bills and become fully independent on your own panels instead of the grid.

But wait, there are a few things that you should do before you install your panels.

Check Your Sunlight Access

Virtually everyone wants their panels to perform optimally, and this can only happen if they receive at least 4 hours of unobstructed sunlight access every day.

Map of the state of Kentucky with each county colored to show the daily peak sun hours in each Kentucky county ranging from 4.15 to 4.56 daily hours of sunlight.

Therefore, it would make a lot of difference if you could check that your roof is not heavily shaded for the better part of the day, whether from buildings or other objects nearby.

Confirm That Your Roof Is Strong and Well-Angled

Your panels are supposed to latch onto your roof for their entire service life. Therefore, it only makes sense that your roof should be in perfect shape to hold them up for that long.

Weak or damaged roofs will not do, and your installer will confirm that. Secondly, also check that the angle is perfect to allow the sun’s rays to hit them perfectly.7

If you have a flat roof, there are solar panel systems available, but they can be a little more pricey.

Local Laws and HOA Rules

It would be disappointing if you were to complete such an expensive project only to be told that it is against the rules and you have to bring the panels down.

It is only prudent to confirm your local laws first before going ahead with the installation. Your HOA may allow it, but there may be specific rules about the placement and the size that you will have to adhere to.

Can You Get Free Solar Panels Kentucky?

Of course solar installation is a huge investment for your house, and you will need to dig deep into your pocket to get it done and done correctly for that matter.

Solar panel for shed installation within the grounds of a United States Army base capturing sunlight to produce solar energy.

(Image: U.S. Army photo by John Prettyman/Released29)

But wait, what if you don’t have to worry about the cost? Are you thinking of how to get solar panels for free?

This would definitely be a game changer when it comes to the conversion rates because anyone eligible would have it.

There are “free” solar panels in Kentucky, but not in the sense that you think. Free basically means that you do not have to pay a dime.

But that is not the same case with solar leasing Kentucky.

That is the closest you can ever get to “free” solar panels, and here is how it works. You lease the solar system from a solar company, and like any leasing contract, you are expected to pay a certain amount at the end of each month.3

This is certainly something worth considering for Kentuckians because you won’t have to worry about down payments or upfront costs. The company does the installation and maintenance on its own.

Secondly, you don’t necessarily have to have perfect credit, and it also helps that your usual monthly utility usage reduces. However, there are a few downsides to solar leasing.

The most vital thing to remember is that you never own the panels; they will always belong to the solar company. This means that there is no way that you can apply for the federal solar tax credit because you don’t have any rights over the system.

Number two, this method of solar panel installation is the least rewarding because you don’t get a payback period, and at no point can you ever say that you are saving money for converting to solar power.

What Are the Available Kentucky Solar Incentives?

There are quite a number of solar incentives available for you if you live in Kentucky. Of course, there is the Federal Solar Tax Credit that is available nationwide, which is also the most attractive in Kentucky.

Apart from that, you also get to make use of Kentucky PACE, Kentucky incentives for energy independence, net metering, and others from local companies.

Is the Cost of Solar Panels in Kentucky Worth It?

As with any other state, solar panels in Kentucky are worth investing in, especially now that it is cheaper than in other places. Besides there are incentives available that will help reduce the costs, either upfront or long-term.

The benefits of solar power definitely make the cost worth it, and it doesn’t take very long to realize that.

Are Solar Panels Kentucky Worth It?

Truthfully, Kentucky may not really be the first state that comes to mind when you are thinking of a booming solar market.

And that is because of the fact that it is currently in the bottom five states when it comes to solar ranking and the unfavorable solar laws are mostly to blame.

The solar panels installed on the white roof of a building are positioned at a steep angle allowing them to absorb sunlight efficiently and effectively with trees and the sky in the background.

(Image: U.S. Department of Energy Photo from Dave Pelunis-Messier30)

But you should consider that the entire country is gradually making the switch to solar, only that some states are a little bit slower than others.

The goal and the intention are still there, and you can tell by the ever-rising number of people installing panels in the state or even just in your neighborhood. If solar is worth investing in other regions that seem more unfavorable than Kentucky, then it is definitely worth getting into as a Kentuckian.

Consider how high the electricity rates are and how many benefits you can accrue for having a solar-powered home. Not only will you be using energy that is cleaner for the environment, but you will also be reducing or eliminating your utility bills altogether.

Imagine how much you will have saved over the course of your panel’s life, which is more than 20 years.

Solar power is gaining traction in the country, and Kentucky is not left behind. It may be taking a while to make as much progress as other states, but one thing is clear, the fact that it is an excellent investment.

What’s more, it is even cheaper to install in the region than in other states which makes it more enticing.

If you are uncertain about making the move, you should know that there are also incentives available to help reduce the costs.

Solar power has never been more attractive to invest in than now.

That is especially true in your state because the Kentucky solar incentives have proven time and again that the cost of solar panels in Kentucky can get lower, and the investment is worth every single penny.

Read More About Kentucky Solar Incentives


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