Solar Guide
Solar in Lexington
Lexington homeowners are exploring solar panel installation as Kentucky electricity prices have increased 19% from 2020 to 2024. With plenty of sunshine and growing interest in clean energy, solar panels offer real benefits for local families.
Learning your options is key to making the right choice. Our guide to home solar panels helps you understand solar installation in Lexington KY.
Key Takeaways
- Kentucky electricity rates increased 13% from 2021 to 2024, making solar panels a smart way to lock in predictable energy costs.
- Federal tax credits save Lexington homeowners 30% on solar installation costs, but this incentive expires at the end of 2025.
- A typical Lexington solar system pays for itself in 12.5 years and provides $34,000 in savings over 25 years.
Solar Cost Calculator
Our solar cost calculator uses real installation data from Lexington neighborhoods like Chevy Chase, Hartland, Hamburg, and Beaumont. Get accurate pricing estimates based on actual local projects, not generic assumptions.
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Lexington Electricity Prices
Understanding Lexington, Kentucky’s electricity costs helps homeowners make informed decisions about their energy future and solar potential.
Kentucky electricity rates have climbed from 11.5 cents per kWh in 2021 to 13.0 cents in 2024, representing a 13% increase over three years.
Solar panels generate electricity at a fixed cost, helping homeowners avoid future utility rate increases while reducing their monthly energy bills.
Over 25 years, solar systems can provide predictable energy costs, offering financial stability as traditional electricity rates continue their upward trend.
Price of Energy: Kentucky vs National Average
Lexington Area Utility Providers
Kentucky Utilities (KU) serves most Lexington Kentucky homes with 2023 electricity rates at 12.0¢ per kWh, below both state and national averages.
KU’s rates stay competitive due to Kentucky’s coal resources and regulated utility structure, keeping costs 4.7¢ below the 2023 national average of 16.0¢.
Lower electricity rates mean longer solar payback periods, but Lexington homeowners still benefit from energy independence and protection against future rate increases.
Lexington Utilities Electricity Rates
Kentucky Solar Incentives
Federal and state programs help reduce solar installation costs in Lexington KY through various solar incentives in Kentucky.
These programs include utility rebates, net metering credits, and federal tax benefits. Duke Energy customers can access PowerPair incentives for solar and battery systems.
Net metering programs vary by utility provider, offering different compensation rates for excess solar energy production.
$6,102
Average savings in Kentucky solar rebates
| Incentive | Type | Description | Source |
|---|---|---|---|
| Residential Clean Energy Credit | Federal tax credit | A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed | Learn More |
| 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 |
The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.
The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.
The Duke Energy PowerPair Solar + Battery Incentive is a pilot program that helps North Carolina homeowners reduce the upfront costs of installing solar panels paired with battery storage systems. This utility program offers a one-time incentive of up to $9,000 to make home solar and battery combinations more affordable for residential customers. The exact incentive amount depends on the type of solar array and battery system you choose to install.
To participate, you must be a Duke Energy customer in North Carolina and work with an approved Duke Energy Trade Ally installer. The program uses a random selection process that opens on May 10th, with a four-week application window available through the Duke Energy website. Participants who choose the net metering bridge rider option must also enroll in Duke Energy’s battery control programs, which provide additional monthly bill credits in exchange for allowing the utility to temporarily use your stored energy during peak demand periods (30-36 times per year). Not all solar and battery systems qualify for the program, so you’ll need to check the approved equipment list and work with certified installers to ensure your system meets the requirements.
I apologize, but I cannot provide a detailed explanation of Kentucky Power’s Net Metering program at this time. The information provided indicates that Palmetto’s policy team has compiled details about Net Metering/Net Billing for Kentucky, but the actual program details appear to be missing from the source material (shown as empty brackets []).
To give you an accurate and helpful explanation of Kentucky Power’s Net Metering program, I would need the specific program details including credit rates, system size limits, eligibility requirements, and any applicable deadlines. Without this essential information, I cannot create a reliable description that would properly inform homeowners about this incentive program.
The Louisville Gas & Electric (LG&E) and Kentucky Utilities (KU) Net Metering program allows homeowners with solar panels to receive credit for excess electricity they generate and send back to the grid. When your solar system produces more power than your home uses during sunny periods, that extra energy flows to the electrical grid and your utility meter essentially runs backward, giving you credits on your electric bill.
Unfortunately, specific details about the financial benefits, eligibility requirements, deadlines, and program terms are not currently available from the official source. Net metering programs typically allow you to use these credits to offset electricity costs during times when your solar panels aren’t producing enough power, such as at night or during cloudy weather. To get complete information about this program’s specific benefits and requirements, homeowners should contact LG&E or KU directly or consult with a qualified solar installer who can provide current program details and help determine if your home qualifies for net metering benefits.
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 QuoteLexington Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Lexington’s humid subtropical climate brings variable cloud cover and seasonal sunlight changes. However, with proper system design, Kentucky cities achieve excellent solar performance year-round.
Solar Production in Lexington by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average 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 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 Lexington
We’ve mapped every solar installation across America to show you something exciting: your Lexington neighbors are embracing clean energy! Explore this interactive map to discover which communities have made the switch to solar power.
Leasing Solar Panels
Palmetto currently doesn’t offer solar leasing or Power Purchase Agreements (PPA) in Kentucky. However, we provide LightReach, an innovative solar solution that delivers the benefits of solar without the upfront investment.
With traditional solar purchases, homeowners handle all maintenance and system monitoring themselves. LightReach removes these responsibilities while providing immediate energy savings. You get solar power without equipment ownership, maintenance concerns, or performance monitoring.
LightReach offers predictable energy costs and professional system management, making solar accessible to more homeowners. Learn more about solar financing options to find the best solution for your Lexington 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
Yes, solar makes sense in Lexington despite Kentucky’s lower electricity rates compared to other states. With electricity costs rising 13% from 2021 to 2024, solar panels provide protection against future rate increases.
A typical Lexington home can save approximately $34,000 over 25 years with solar, achieving payback in about 12.5 years. The 30% federal tax credit, available through 2025, significantly reduces upfront costs making solar investment more attractive for local homeowners.
Net metering availability in Lexington depends on your utility provider. Kentucky Utilities (KU) and Louisville Gas & Electric (LG&E), which serve most Lexington homes, offer net metering programs that allow solar customers to receive credits for excess electricity sent back to the grid.
However, specific program details like credit rates and system size limits are not currently available from official sources. Contact your utility provider directly or consult with a qualified solar installer to get current net metering program information and determine if your home qualifies for these benefits.
Yes, solar panels increase home value in Lexington, KY. Research shows that homes with solar systems sell for approximately 4.1% more than comparable homes without solar, according to Zillow’s national study.
For Lexington homeowners, this translates to thousands of dollars in added property value. Solar panels are viewed as permanent home improvements that reduce future electricity costs, making properties more attractive to buyers in Kentucky’s competitive real estate market.
Solar costs in Lexington range from $11,721 to $19,653 after the 30% federal tax credit, depending on your home size and energy needs. A typical medium-sized home requires a 6.38 kW system costing approximately $14,238 after incentives.
System prices include installation, equipment, permits, and warranties. With Kentucky electricity rates at 13.0¢/kWh, most Lexington homeowners see their solar investment pay for itself in about 12.5 years while saving $34,000 over 25 years.
Yes, solar is financially worth it for most Lexington homeowners. With Kentucky electricity rates rising 13% since 2021, a typical solar system saves approximately $34,000 over 25 years while paying for itself in 12.5 years.
The 30% federal tax credit reduces upfront costs significantly, and solar panels protect against future utility rate increases while providing predictable energy costs for decades.
We believe in serving Lexington homeowners with transparent pricing, quality installations, and excellent customer service. As a national company with local focus, we offer competitive financing options and work with trusted installation partners throughout Kentucky.
Our team provides personalized solar solutions designed for your specific home and energy needs, backed by comprehensive warranties and ongoing support to ensure your solar investment delivers long-term value.