Estimated Savings for a Typical Kentucky Home
Based on a standard 8 kW home system
System Size
8 kW
Gross Cost
$22,400
State Incentive
None
Net Cost
$22,400
Annual Savings
$1,204
Payback Period
18.6 yrs
25-Year Savings
$18,709
CO₂ Offset/yr
9,886 lbs
Kentucky Solar Incentives
✕
Federal Tax Credit (Expired Dec 31, 2025)
The 30% federal Residential Clean Energy Credit ended for purchased systems on December 31, 2025. Homeowners buying with cash or a loan in 2026 can no longer claim it. A solar lease or PPA can still pass through a federal credit through 2027 — the installer claims it and lowers your payments.
Net Metering Policy: Avoided Cost
Top utility in Kentucky: LG&E and KU Energy. View full incentives detail →
Solar Costs by City in Kentucky
| City | Annual Savings | Payback (yrs) | Population ↓ | Utility |
|---|---|---|---|---|
| Louisville | $1,096 | 20.4 | 633,045 | LG&E and KU Energy |
| Lexington | $1,182 | 19 | 322,570 | Kentucky Utilities |
| Bowling Green | $1,282 | 17.5 | 72,294 | LG&E and KU Energy |
| Owensboro | $1,241 | 18.1 | 59,012 | Kentucky Utilities |
| Covington | $1,030 | 21.7 | 40,956 | Duke Energy KY |
| Georgetown | $1,311 | 17.1 | 36,066 | Kentucky Utilities |
| Richmond | $1,032 | 21.7 | 35,696 | Kentucky Utilities |
| Florence | $954 | 23.5 | 32,408 | Duke Energy KY |
| Hopkinsville | $1,096 | 20.4 | 32,042 | Pennyrile Electric |
| Elizabethtown | $1,325 | 16.9 | 30,289 | LG&E and KU Energy |
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Quick Facts: Kentucky
- ⚡ Avg rate: $0.112/kWh
- 🌞 Peak sun: 4.6 hrs/day
- 🏭 Top utility: LG&E and KU Energy
- 📋 Net metering: Avoided Cost