Kentucky Solar Incentives & Tax Credits
Every solar incentive available to Kentucky homeowners in 2026.
Federal Tax Credit — Expired for Purchases
The 30% federal Residential Clean Energy Credit (Section 25D) expired on December 31, 2025. Homeowners who buy a system with cash or a loan in 2026 can no longer claim it — a $27,174 system that once carried a $8,152 credit now has none.
- ✅ Solar leases and PPAs can still capture a federal credit through 2027 — the installer claims it and lowers your monthly payment
- ✅ State incentives and net metering below still apply to purchased systems
- ✕ No federal credit for cash or financed purchases placed in service after Dec 31, 2025
Kentucky State Incentive
Kentucky has no statewide solar incentive program.
While Kentucky does not offer a statewide solar tax credit, many utilities offer their own rebate programs. Check with your local utility for current offers.
Net Metering in Kentucky
Kentucky has Avoided Cost net metering. Your top utility, LG&E and KU Energy, credits you for excess solar power fed to the grid.
Utility Net Metering Policies in Kentucky
| Utility | Rate/kWh | Net Metering | Capacity Limit |
|---|---|---|---|
| LG&E and KU Energy | $0.112 | Full Retail | No overall limit |
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