Kentucky Solar Panels
Solar in Kentucky
Kentucky electricity prices have jumped 19% since 2020, and many homeowners are exploring solar as a way to stabilize their energy costs. Understanding your options for solar panels for home installation is the first step toward energy independence.
This guide walks you through everything Kentucky homeowners need to know about solar installation—from costs and incentives to choosing the right system for your property.
Kentucky Solar Panel Cost
Our calculator uses real installation data from Kentucky homeowners in Louisville, Lexington, Bowling Green, and beyond. See actual costs based on thousands of local solar projects—giving you honest, location-specific estimates for your home’s solar potential.
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Key Takeaways
- Kentucky electricity rates have risen 19% since 2020, making solar panels a smart way to lock in predictable energy costs.
- An average Kentucky solar system costs around $25,475 and can save homeowners approximately $46,000 over 25 years.
- Duke Energy offers up to $9,000 in solar incentives for customers who pair solar panels with battery storage systems.
Looking for More Detailed Kentucky City Guides?
Explore our comprehensive solar guides for major cities across Kentucky to find location-specific information on incentives, installers, and solar potential.
Kentucky Electricity Prices
Understanding electricity costs helps Kentucky homeowners make informed decisions about their energy future. Here’s what the data shows about recent price trends.
Kentucky electricity rates have risen from 11.5 cents per kilowatt-hour in 2021 to 13.0 cents in 2024—a 13% increase in just three years. This upward trend affects household budgets across the state.
Solar panels generate electricity at a fixed cost, helping homeowners avoid future rate increases. Once installed, your system produces power at the same cost for decades, regardless of utility price changes.
Over a 25-year period, solar can provide predictable energy costs while utility rates continue to fluctuate. This long-term stability helps Kentucky families better plan their household budgets and reduce exposure to rising electricity prices.
Price of Energy: Kentucky vs National Average
Kentucky Area Utility Providers
Kentucky residents enjoy electricity rates below both state and national averages. As of 2023, major providers like Kentucky Utilities (12.0¢/kWh) and Duke Energy (12.2¢/kWh) charge less than the national average of 16.0¢/kWh.
Kentucky’s lower rates stem from its reliance on coal-fired power plants and natural gas generation, which have historically kept costs down. However, utility rates have climbed 19% since 2020, reflecting infrastructure upgrades and changing fuel costs.
While Kentucky’s current rates are competitive, rising utility costs make long-term planning important. Solar installation allows homeowners to lock in predictable energy costs, reducing exposure to future rate increases while maintaining control over monthly expenses.
Kentucky Utilities Electricity Rates
Kentucky Solar Incentives
Kentucky homeowners can access several solar incentives in Kentucky to help offset installation costs, including utility programs and net metering credits.
Duke Energy customers can receive up to $9,000 through the PowerPair program when combining solar with battery storage. Net metering programs from Kentucky Power, LG&E, and KU provide ongoing bill credits for excess energy your system generates.
These incentives change frequently and may have participation caps. Review the details below and act promptly to secure available savings for your solar installation.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Duke Energy: PowerPair Solar + Battery Incentive | Utility program | New pilot for Duke Energy Customers offering $3,600 for solar plus $5,400 for battery storage. Combined maximum $9,000. | Learn More |
Duke Energy’s PowerPair program offers Kentucky homeowners a one-time incentive of up to $9,000 to help cover the cost of installing a solar panel system paired with battery storage. This pilot program is designed to make home solar and battery systems more affordable while helping Duke Energy manage the electric grid more effectively. The exact incentive amount depends on the specific type of solar array and battery system you install.
To participate, you must use a Duke Energy-approved Trade Ally installer and have qualifying equipment (not all systems are eligible). The program uses a random selection process that opens periodically, with application windows lasting four weeks. You can choose between two enrollment options: the Residential Solar Choice (RSC) rider or the Net Metering Bridge (NMB) rider. If you select the NMB option, you’ll be required to enroll in Duke Energy’s battery control program, which allows the utility to temporarily access your stored energy during peak demand periods (30-36 times per year). In exchange, you’ll receive additional monthly bill credits on top of your initial incentive.
Before applying, check Duke Energy’s website at duke-energy.com/PowerPair for the approved battery vendor list, equipment eligibility requirements, and to sign up for program updates about when the next application window opens. You can also use Duke Energy’s Find It Duke program to locate approved installers in your area.
I apologize, but I’m unable to create a detailed description for the Kentucky Power Net Metering program at this time. The information provided from the official source appears to be empty or incomplete, which means I don’t have the specific details needed to accurately explain how this net metering program works, what financial benefits it offers, or what eligibility requirements apply.
Net metering programs typically allow homeowners with solar panels to receive credit for excess electricity they send back to the grid, but the specific terms, credit rates, and rules vary significantly by utility company. To get accurate information about Kentucky Power’s net metering program, I recommend contacting Kentucky Power directly or visiting their official website for the most current program details and requirements.
Unfortunately, no specific information is currently available about the Louisville Gas & Electric (LG&E) and Kentucky Utilities (KU) Net Metering program. Net metering is typically a billing arrangement that allows solar system owners to receive credit for excess electricity their panels generate and send back to the grid. When your solar panels produce more energy than your home uses, the surplus flows to the utility grid, and your electric meter runs backward, crediting your account.
Under most net metering programs, these credits offset the cost of electricity you draw from the grid when your panels aren’t producing enough power, such as at night or on cloudy days. The specific terms, credit rates, and eligibility requirements for LG&E and KU customers would be determined by the utility companies and Kentucky state regulations. We recommend contacting LG&E or KU directly to learn about current net metering availability, how credits are calculated, system size limits, and the application process for connecting your solar system to their grid.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Kentucky incentives.
Get a Free QuoteKentucky Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Kentucky’s mix of sunny summers and cloudy winters creates seasonal variation in solar output. But like many states with similar climates, Kentucky homes can achieve strong year-round production with properly designed systems.
What Can the Average Kentucky Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average Kentucky homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average Kentucky homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Installations in Kentucky
We’ve mapped every solar installation across Kentucky to help you explore which neighborhoods are embracing clean energy. Click any hexagon to see how many homes in that area have made the switch to solar—you might be surprised by how many neighbors are already enjoying the benefits!
Leasing Solar Panels
Unfortunately, Palmetto does not currently offer solar leasing or Power Purchase Agreements (PPAs) in Kentucky. While these financing options help homeowners go solar without upfront costs in some states, they’re not available for Kentucky residents at this time.
However, Kentucky homeowners can still access solar through traditional purchase options or solar loans. These approaches let you own your system outright, which means you benefit from any available incentives and build equity in your home. Many solar financing programs offer competitive rates that make monthly payments comparable to lease payments—while giving you full ownership benefits.
If you’re interested in exploring solar ownership options that work for your budget, Palmetto’s team can walk you through financing alternatives that provide long-term value. Visit our products page to learn about all available solar solutions, or contact us to discuss which approach makes the most sense for your home.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Solar makes sense for many Kentucky homeowners, especially with electricity rates climbing 19% since 2020. The state receives about 4.7 peak sun hours daily, which provides solid solar production year-round.
Kentucky offers net metering through major utilities and Duke Energy’s PowerPair program provides up to $9,000 in incentives. An average system costs around $25,475 and can save approximately $46,000 over 25 years, with a payback period of about 16 years.
Kentucky does not have a statewide net metering mandate. However, several major utilities offer net metering programs on a voluntary basis, including Kentucky Power, Louisville Gas & Electric (LG&E), and Kentucky Utilities (KU).
These programs typically credit solar customers at or near retail rates for excess electricity sent back to the grid. Availability and specific terms vary by utility, so Kentucky homeowners should check directly with their electric provider to confirm net metering options in their service area.
Solar panels typically increase home value in Kentucky. Research from Zillow shows that homes with solar panels sell for about 4.1% more than comparable homes without solar systems.
For a Kentucky home valued at $200,000, this could mean an additional $8,200 in resale value. Since solar systems also reduce monthly electricity costs, they offer both immediate savings and long-term property value benefits for Kentucky homeowners.
The average cost for a solar panel system in Kentucky is around $25,475 for an 8.51 kW system, which works out to about $2.99 per watt. This price reflects the typical system size needed to offset most of a Kentucky home’s electricity usage.
Your actual cost depends on your home’s energy needs, roof characteristics, and available incentives. Duke Energy customers can receive up to $9,000 through the PowerPair program when combining solar with battery storage, which can significantly reduce your upfront investment.
Solar can be financially worth it in Kentucky for homeowners with suitable roofs and average electricity usage. With rates rising 19% since 2020, solar helps lock in predictable energy costs while reducing monthly bills by an average of $104.
An 8.51 kW system costs around $25,475 and typically pays for itself in about 16 years. Over 25 years, Kentucky homeowners can save approximately $46,000. Duke Energy customers may also qualify for up to $9,000 in PowerPair incentives when adding battery storage.
At Palmetto, we bring a national presence with local expertise to Kentucky homeowners. We combine competitive financing options with a trusted network of installation partners across the state, making solar accessible and straightforward.
Our team handles everything from initial design to final installation, backed by comprehensive support throughout the process. We focus on transparency and long-term relationships, ensuring Kentucky families receive quality solar solutions that fit their specific needs and budgets.