Lexington, KY Solar Panels
Solar Power in Lexington
If you’re a Lexington homeowner thinking about solar, you’re not alone. Kentucky electricity prices have risen 19% from 2020 to 2024, and many residents are looking for ways to reduce their energy bills. Home solar panels are one of the most practical ways to do that.
At Palmetto, we help Lexington homeowners understand how solar works — from installation to long-term savings. This guide covers what you need to know to feel confident about going solar.
How Much Do Solar Panels Cost in Lexington, KY?
Using real installation data from Lexington and surrounding areas like Nicholasville, Georgetown, and Richmond, this calculator gives you an honest, localized estimate of what solar panels could cost — and save — for your home.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Kentucky electricity prices have risen 19% since 2020, making solar panels one of the most practical ways for Lexington homeowners to reduce their monthly energy bills.
- A typical Lexington home can save around $34,000 over 25 years with solar — and leasing options start as low as $81/month with no upfront cost.
- Lexington homeowners have access to net metering through Kentucky Utilities, allowing you to earn bill credits for the extra energy your solar panels send back to the grid.
Lexington Electricity Prices
Electricity costs in Lexington, KY have been climbing. Here’s how Kentucky rates compare to the national average — and what that means for homeowners.
Kentucky’s residential electricity rate rose from 11.5 cents per kWh in 2021 to 13.0 cents in 2024 — roughly a 13% increase. The chart alongside shows how Kentucky rates, while still below the national average, continue to trend upward year over year.
For homeowners exploring solar panel installation in Lexington, KY, rising utility rates are a key consideration. Solar can offset a significant portion of household electricity consumption, reducing dependence on grid power and the rate increases that come with it.
Over the long term, a home solar system helps insulate households from future rate increases. As grid electricity costs continue to rise nationally, Lexington homeowners with solar may be better positioned to manage their energy expenses over time.
Price of Energy: Kentucky vs National Average
Lexington Area Utility Providers
In Lexington, KY, the primary electricity provider is Kentucky Utilities. Based on 2023 data — the most recent available — Kentucky Utilities charges 12.0¢ per kWh, giving Lexington homeowners a clear picture of their local energy costs.
Kentucky Utilities’ 2023 rate of 12.0¢ per kWh sits below both the Kentucky state average of 12.70¢ and the national average of 16.0¢. This is partly due to Kentucky’s historically heavy reliance on coal-based power generation, which has kept rates lower.
Even at 12.0¢ per kWh, electricity rates can rise over time. For Lexington homeowners exploring solar panel installation, going solar can help lock in more predictable energy costs and reduce exposure to future utility rate increases.
Lexington Utilities Electricity Rates
Kentucky Solar Incentives
Lexington homeowners have access to several solar incentives in Kentucky that can help reduce the upfront and ongoing costs of going solar.
Available incentives include Kentucky’s net metering program, Duke Energy Kentucky’s PowerPair rebate (up to $9,000 for solar paired with battery storage), the LG&E/KU Solar Share community solar program, and C-PACE financing for commercial property owners.
The federal residential solar tax credit no longer applies. For those exploring leasing, Palmetto’s LightReach program handles the commercial tax credit and reflects those savings in your monthly payment — simplifying the process.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Kentucky Net Metering | Net Metering | Kentucky mandates net metering for investor-owned utilities and electric cooperatives, allowing solar customers to receive credits for excess energy sent to the grid, though compensation rates and structures vary by utility. | Learn More |
| LG&E and KU Solar Share Program | Community Solar | LG&E and KU Energy customers can purchase shares of a local community solar project to receive bill credits without installing rooftop solar panels. | |
| Kentucky C-PACE Financing (Commercial Property Assessed Clean Energy) | Financing | Kentucky commercial property owners in eligible counties can finance up to 100% of solar installation costs through C-PACE, repaid as a voluntary assessment on their property tax bill. |
Kentucky state law requires all investor-owned utilities (IOUs) and electric cooperatives — excluding the Tennessee Valley Authority (TVA) — to offer net metering to customers with qualifying solar energy systems. The state’s net metering policy has recently been updated by SB 100, which increases the eligible system size from 30 kW to 45 kW and shifts compensation from the retail rate to a rate set by the Kentucky Public Service Commission (PSC).
Lexington residents are primarily served by LG&E and KU Energy, which currently offer full retail net metering, meaning excess kWh credits are valued at the same rate you pay for electricity — giving you 100% of the value of your surplus generation.
Customers who enrolled in net metering with LG&E or KU before September 24, 2021, may be grandfathered under older credit structures. Contact your utility or visit the Kentucky PSC website for the most current rate information.
The LG&E and KU Solar Share program allows residential and business customers in Lexington to support and benefit from local solar energy without installing panels on their own property. Customers can purchase shares of a community solar project for less than 20 cents per day and receive corresponding credits on their monthly electricity bill.
This program is ideal for renters, homeowners with shaded or unsuitable roofs, or anyone who wants to go solar without the upfront installation costs or long-term maintenance responsibilities of a private system. Shares can be secured for your home or business, and credits can even be gifted to a friend, family member, or organization of your choice.
The Solar Share program is a straightforward way to participate in renewable energy in Kentucky with minimal commitment. There are no installation requirements, no equipment to maintain, and no large upfront investment. Visit the official LG&E/KU website to check current share availability and pricing.
Kentucky’s Commercial Property Assessed Clean Energy (C-PACE) financing program, administered by Energize Kentucky (a Greater Cincinnati Energy Alliance program), allows eligible commercial property owners to finance up to 100% of the cost of solar installations and other clean energy improvements with no down payment required. The financing is repaid over time as a voluntary assessment on the property’s tax bill, typically offering lower interest rates and longer repayment terms than conventional commercial loans.
C-PACE is currently available only for commercial properties in Kentucky — it is not available for single-family residential homes. Eligible property types include office, retail, industrial, agricultural, non-profits, and multi-family residential properties with five or more units. The program is available in counties that have passed enabling C-PACE legislation, including Jefferson, Bullitt, Nelson, Boone, Pendleton, and Lincoln counties, among others.
Because the repayment is tied to the property rather than the owner, C-PACE financing can transfer to a new owner if the property is sold, which can be an attractive feature for commercial real estate investors. Visit kypace.org to check county eligibility, learn about qualifying projects, and begin the application process.
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 gets about 201 sunny days per year. Cloudy winters can seem discouraging, but like Boston or Seattle, the right solar system still makes strong financial sense here.
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 mapped every solar installation in Lexington, KY so you can see just how many of your neighbors have made the switch. Explore the map below to discover which neighborhoods and communities are leading the way to cleaner, more affordable energy.
Leasing Solar Panels
Not everyone wants to pay tens of thousands of dollars upfront for solar. That’s why Palmetto offers LightReach, a solar lease program available to Lexington, KY homeowners. With a lease, you pay a fixed monthly amount — as low as $81/month for a medium-sized home — and Palmetto handles everything else.
When you lease through LightReach, Palmetto owns the system and takes care of all maintenance, monitoring, and repairs. There’s no large upfront investment, no surprise repair bills, and no need to track incentives or warranties on your own. You simply enjoy lower energy costs from day one. This is a meaningful advantage over buying outright, where you’re responsible for long-term system upkeep. Learn more about how the two options compare at palmetto.com/solar-buy-or-lease.
A lease also differs from a Power Purchase Agreement (PPA). With a PPA, you pay per kilowatt-hour of electricity your system produces — so your bill can vary month to month. With a lease, your monthly payment stays fixed, making it easier to budget. In Lexington, Palmetto’s LightReach lease is the available option, giving homeowners a straightforward, predictable path to solar savings without the complexity of ownership.
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 for many Lexington homeowners. Kentucky electricity prices have risen 19% since 2020, and Lexington averages 4.7 peak sun hours per day — enough to generate meaningful savings. A typical home can save around $34,000 over 25 years.
If upfront cost is a concern, Palmetto’s LightReach solar lease removes that barrier entirely — Lexington homeowners can go solar with no money down and start saving from day one, with payments starting as low as $81/month.
Yes, Lexington homeowners have access to net metering through Kentucky Utilities. Kentucky state law requires investor-owned utilities to offer net metering, which means when your solar panels produce more electricity than your home uses, the excess is sent back to the grid in exchange for bill credits.
Lexington residents served by Kentucky Utilities currently receive credits valued at the full retail rate — meaning you get 100% of the value of your surplus solar generation. This can significantly reduce your monthly electricity bill, especially during sunny summer months when your panels produce the most energy.
Yes, solar panels can increase your home’s value in Lexington, KY. Research from Zillow found that homes with solar panels sell for approximately 4.1% more than comparable homes without them. For a median-priced home in Lexington, that could represent a meaningful boost at resale.
It’s worth noting that this benefit typically applies to owned systems, not leased panels. If you purchase your solar system outright, buyers generally view it as an asset that adds value — helping your home stand out in the Lexington real estate market.
The most accessible way for Lexington homeowners to go solar is through Palmetto’s LightReach lease — with no upfront cost and a low fixed monthly payment starting around $81/month for a medium-sized home. Palmetto owns and maintains the system, so there’s nothing to manage.
If you prefer to purchase outright, a typical Lexington system runs around $20,340 for a medium-sized home. Note that the federal 30% residential solar tax credit is no longer available following the Big Beautiful Bill. Use the calculator above for a personalized estimate.
For many Lexington homeowners, solar can be worth it financially — especially with a lease option. With Palmetto’s LightReach lease, your monthly payment is typically less than your current electricity bill, meaning you can start saving from day one with no upfront investment required.
Kentucky electricity rates have risen 19% since 2020, and that trend is expected to continue. A leased solar system helps Lexington homeowners reduce their exposure to rising utility costs without the financial commitment of purchasing a system outright.
Palmetto is a strong choice for solar installation in Lexington, KY. As a national company with a local focus, we’ve served 20,000+ customers across 31 states and bring that experience directly to Lexington homeowners.
We offer some of the most flexible financing options available, including our LightReach lease — no upfront cost, fixed monthly payments starting at $81/month, and we handle all maintenance and monitoring. Our trusted installer network ensures quality installations backed by a 90% production guarantee.
With Palmetto’s LightReach lease, there is no upfront cost. Palmetto owns the system and handles installation, monitoring, maintenance, and includes a 90% Production Guarantee — all in one fixed monthly payment. For a typical 6.38 kW system in Lexington, KY, that’s approximately $81/month.
Because Palmetto owns the system, it qualifies for the commercial Investment Tax Credit (ITC), and those savings are passed directly to you through lower monthly payments — a key advantage over a cash purchase. Most Lexington homeowners find the lease payment is less than their current electricity bill, so savings begin immediately.