Kentucky Solar Guide 2026
Everything Kentucky homeowners need to know: costs, incentives, net metering policy, and what makes this state unique for solar.
Key fact about Kentucky solar
Kentucky has full retail net metering but low electricity rates (~$0.11/kWh) and limited state incentives make payback long. The coal-heavy grid also means solar provides significant carbon benefits in KY.
Peak sun hours
4.6
hrs/day avg
Avg electricity rate
11.0¢
per kWh
Median install cost
$2.8/W
before incentives
Typical payback
13 yrs
8 kW system, avg usage
Typical 8 kW system in Kentucky
Annual production
13,432 kWh
Year-1 savings
$1,478
System cost (est.)
$22,400
No federal tax credit — Section 25D expired December 31, 2025.
Kentucky Net Metering Policy
Full retail net metering (KRS 278.465)
Kentucky requires full retail net metering under state law. LG&E, KU, and Duke Energy Kentucky must credit exports at retail rate. Monthly excess rolls forward for 12 months.
Kentucky Solar Incentives
Available in addition to any utility rebates. Federal 25D credit is $0 for homeowner-owned systems from 2026.
- ✓Property tax exemption
- ✓No current state income tax credit for solar
Top Utilities in Kentucky
Interconnection timeline: 4–8 weeks
Calculate your Kentucky solar economics
Our calculators are pre-filled with Kentucky data. Run any tool below.