Lexington, KY Solar Panels
Solar Power in Lexington
Thinking about solar energy for your Lexington home? You’re in the right place. With Kentucky electricity prices increasing 19% from 2020 to 2024, more homeowners are exploring how solar panels for home use can help manage rising energy costs.
This guide covers everything you need to know about solar installation in Lexington—from local incentives to what to expect from the installation process.
How Much Do Solar Panels Cost in Lexington, KY?
Our solar cost calculator uses real installation data from Lexington homes—including neighborhoods like Hamburg, Chevy Chase, and Gardenside—to show you accurate pricing. Get a personalized estimate based on actual local projects, not national averages.
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You can still access the solar tax credit through Palmetto. Talk to us today to find out how.
Key Takeaways
- Lexington receives 4.7 peak sun hours daily, making solar panels a viable option for generating clean energy year-round.
- Kentucky electricity rates increased 13% from 2021 to 2024, and solar panels lock in predictable energy costs for decades.
- A typical 6.38 kW system costs around $20,340 and can save Lexington homeowners approximately $34,000 over 25 years.
Lexington Electricity Prices
Understanding electricity costs in Lexington helps you make informed decisions about your home’s energy future and long-term budget planning.
Kentucky electricity rates have climbed from 11.5 cents per kWh in 2021 to 13.0 cents in 2024—a 13% increase in just three years, with utility costs expected to continue rising.
Solar panels generate electricity at a fixed cost, protecting homeowners from these rate increases. Once installed, your system produces power at the same predictable rate for decades, regardless of utility price changes.
Over 25 years, this stability adds up significantly. While utility rates continue climbing, solar owners lock in their energy costs today, creating long-term savings and predictable monthly expenses for their households.
Price of Energy: Kentucky vs National Average
Lexington Area Utility Providers
Understanding your electricity costs is key to evaluating solar energy. In Lexington, Kentucky Utilities (KU) provides power at 12.0¢ per kWh (2023 data), which is notably below both the state average of 12.70¢ and the national average of 16.0¢.
KU’s competitive rates stem from Kentucky’s coal resources and diverse energy mix, keeping costs lower than much of the country. However, utility rates have steadily increased over time, and this trend is expected to continue as infrastructure and fuel costs rise.
Even with below-average rates, solar can offer long-term value by locking in predictable energy costs. As utility prices climb, homeowners with solar systems benefit from stable, self-generated electricity that offsets grid dependence and provides protection against future rate increases.
Lexington Utilities Electricity Rates
Kentucky Solar Incentives
Going solar in Lexington is more affordable than you might think. Several solar incentives in Kentucky help offset installation costs for homeowners.
Lexington residents can access utility-specific programs and net metering options depending on their energy provider. Duke Energy customers may qualify for battery storage incentives, while LG&E, KU, and Kentucky Power customers have net metering programs that credit excess solar energy production.
These programs change regularly and some have limited enrollment windows. Review the details below to understand which incentives apply to your situation and your utility provider.
| 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 home solar system paired with battery storage. This pilot program is designed to make solar-plus-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 Trade Ally installer—a solar and battery installer approved by Duke Energy. Not all equipment qualifies for the program, so you’ll need to check Duke Energy’s approved battery vendor list before purchasing. Participants are selected through a random selection process that opens periodically (the initial window opened May 10, 2024, for four weeks). You can choose between two enrollment options: the Residential Solar Choice rider or the Net Metering Bridge rider. If you select the Net Metering Bridge option, you’ll be required to enroll in Duke Energy’s battery control program, which allows the utility to temporarily use your stored electricity during peak demand times (30-36 times per year). In exchange, you’ll receive additional monthly bill credits on top of the initial incentive. You can opt out of up to four events per year and still receive these credits.
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 for Kentucky Power customers.
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—such as credit rates, system size limits, and billing procedures—vary 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 can 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. To learn about the specific terms, credit rates, eligibility requirements, and any system size limitations for LG&E and KU customers, we recommend contacting your utility provider directly or speaking with a Palmetto solar advisor who can help you understand how net metering would work with your solar system.
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 experiences four distinct seasons with moderate sun exposure year-round. While summers bring peak production, even Kentucky’s cloudier winter months generate meaningful solar energy with properly designed systems.
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 Panel Systems in Lexington
We’ve mapped every solar installation across America to help you explore the solar movement in Lexington. Click any hexagon to see how many neighbors in that area have made the switch to clean energy!
Leasing Solar Panels
Currently, Palmetto does not offer solar leasing or Power Purchase Agreement (PPA) options in Lexington, Kentucky. However, we understand that the upfront cost of solar can be a concern for many homeowners.
While leasing isn’t available in your area, purchasing a solar system still offers significant advantages. When you own your panels, you benefit from increased home value, full control over your energy production, and the ability to take advantage of any available incentives. Plus, with various financing options, going solar can be more accessible than you might think.
If you’re interested in exploring affordable ways to go solar in Lexington, our LightReach program may offer alternative solutions. Contact a Palmetto solar advisor to discuss what financing options work best for your situation and budget.
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. With 4.7 peak sun hours daily and Kentucky electricity rates rising 13% since 2021, solar panels provide stable energy costs and meaningful savings over time.
A typical 6.38 kW system costs around $20,340 and can save approximately $34,000 over 25 years. While Kentucky lacks state-level solar incentives, net metering programs through LG&E, KU, and Kentucky Power help maximize your investment by crediting excess energy production.
Net metering availability in Lexington depends on your utility provider. Louisville Gas & Electric (LG&E), Kentucky Utilities (KU), and Kentucky Power all offer net metering programs that credit you for excess solar energy sent back to the grid.
These credits help offset electricity costs when your panels aren’t producing enough power, like at night or during cloudy weather. Contact your specific utility provider or speak with a Palmetto solar advisor to understand the exact net metering terms available for your home.
Yes, solar panels increase home value in Lexington. Research shows that solar panels increase home value by 4.1% on average across the United States.
For a median-priced Lexington home, this translates to thousands of dollars in added equity. Buyers increasingly value homes with solar systems because they offer predictable energy costs and protection from rising utility rates. The investment you make in solar today can pay dividends when it’s time to sell.
The cost of going solar in Lexington varies by home size. Based on actual local installations, a typical medium-sized home (2,000-3,000 sq ft) needs a 6.38 kW system costing approximately $20,340, or $3.19 per watt.
Smaller homes may need a 5.10 kW system ($16,744), while larger homes could require 9.13 kW ($28,075). Your final cost depends on your roof characteristics, energy usage, and available utility programs like net metering through LG&E, KU, or Kentucky Power.
Yes, solar is financially worth it in Lexington. A typical 6.38 kW system costs around $20,340 and can save approximately $34,000 over 25 years, with an average payback period of 16.7 years.
With Kentucky electricity rates increasing 13% from 2021 to 2024, solar panels lock in predictable energy costs for decades. Net metering programs through LG&E, KU, and Kentucky Power help maximize savings by crediting excess energy production, making solar a sound long-term investment for Lexington homeowners.
At Palmetto Solar, we’re a national solar company with deep local expertise in Lexington. We offer some of the industry’s best financing options and work with a trusted network of professional installers to serve homeowners throughout Kentucky.
Our approach combines national resources with local focus, ensuring you receive quality solar panels, transparent pricing, and reliable service. We handle everything from system design to installation coordination, making your transition to clean energy straightforward and stress-free.