Lexington, KY Solar Panels
Solar Power in Lexington
Curious about solar installation in Lexington, KY? Palmetto has helped homeowners across the country navigate the switch to solar — and we know what matters most locally. With Kentucky electricity prices rising 19% from 2020 to 2024, many Lexington homeowners are looking for smarter ways to stabilize their monthly energy bills.
This guide walks you through everything you need to know about solar panels for your home — from how the installation process works to what it means for your household right here in Lexington.
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 estimate of what solar costs for homes like yours — no guesswork, just local numbers.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Kentucky electricity rates have risen 13% since 2021 — solar panels help Lexington homeowners generate their own power and reduce exposure to future rate increases.
- A typical Lexington home can save around $34,000 over 25 years with solar, with flexible options including a $81/month lease requiring zero upfront investment.
- Lexington gets 4.7 peak sun hours per day and has access to Kentucky net metering, making solar a reliable, year-round energy solution for local homeowners.
Lexington Electricity Prices
Electricity costs in Lexington have been quietly climbing. Here’s what the data shows — and why it matters for your home.
Kentucky’s electricity rate rose from 11.5 cents per kWh in 2021 to 13.0 cents per kWh in 2024 — roughly a 13% increase in three years. While still below the national average of 16.5 cents per kWh, the upward trend is steady and consistent.
Solar panels allow homeowners to generate their own electricity, reducing how much power they need to purchase from the grid. As utility rates rise, a solar-powered home becomes naturally more insulated from those increases.
Over a 25-year system lifespan, even modest rate increases can add up to significant energy costs. Solar gives Lexington homeowners a way to get ahead of that trend — on their own terms.
Price of Energy: Kentucky vs National Average
Lexington Area Utility Providers
Lexington homeowners are primarily served by Kentucky Utilities (KU). Based on the most recent available data (2023), KU’s residential electricity rate was 12.0¢ per kWh — below both the Kentucky state average and the national average.
Kentucky’s rates have historically been lower than the national average of 16.0¢ per kWh, largely due to the state’s energy generation mix. The 2023 Kentucky state average was 12.70¢ per kWh, and KU came in just below that.
Even with lower-than-average rates, electricity costs can still shift year to year. Solar can help Lexington homeowners generate their own power and reduce exposure to future rate changes — offering more long-term predictability over time.
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 programs include the Duke Energy PowerPair rebate of up to $9,000 for solar paired with battery storage, Kentucky net metering through LG&E and KU, and a community solar option for those who prefer no rooftop installation.
Note that the federal residential solar tax credit no longer applies. For those considering a solar lease, Palmetto’s LightReach program handles incentives on the commercial side and passes savings through lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Kentucky Net Metering (LG&E, KU, and Other Utilities) | Net Metering | Kentucky requires investor-owned utilities and most electric cooperatives to offer net metering for solar systems up to 45 kW, with credit rates varying by utility. | Learn More |
| LG&E and KU Solar Share Program (Community Solar) | Rebate | LG&E and KU customers can subscribe to shares of a community solar project and receive monthly bill credits without installing panels on their own property. | Learn More |
Kentucky state law (S.B. 100) requires all investor-owned utilities and electric cooperatives — excluding TVA-served utilities — to offer net metering for qualifying solar systems up to 45 kW. The credit structure is set by the Kentucky Public Service Commission (PSC) on a utility-by-utility basis. LG&E and KU Energy — the primary utility providers serving Lexington — offer full retail net metering, meaning every excess kWh you send to the grid earns a credit at the same rate you pay for electricity — giving you 100% of the value of your surplus solar energy. Customers who enrolled with LG&E or KU before September 24, 2021, may be grandfathered under older credit structures.
TVA-served utilities in western Kentucky (including Gibson, Pennyrile, Tri-County, Warren, and West Kentucky) are not required by state law to offer net metering, though some may do so voluntarily. Municipal electric utilities are similarly not mandated but may offer their own programs. Homeowners in Lexington should contact their specific utility provider to confirm current net metering terms and compensation rates.
The LG&E and KU Solar Share Program is a community solar option that allows residential, business, and industrial customers to benefit from solar energy without installing panels on their own property. Customers purchase shares of a local community solar project for less than 20 cents per day and receive corresponding credits on their monthly electricity bill based on the energy their shares produce.
This program is ideal for renters, homeowners with shaded or structurally unsuitable roofs, or anyone who wants to participate in solar energy without the upfront installation costs or long-term maintenance responsibilities of a private system. Solar Share credits can even be gifted to a friend, family member, or organization of your choice, making it a flexible and accessible way to go solar in Lexington, KY.
The Solar Share Program is administered by LG&E and KU Energy and is available to customers within their service territories. There is no installation required, no long-term maintenance commitment, and participation can begin with a minimal financial commitment. Contact LG&E/KU or visit their website to check current share availability and pricing.
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 197 sunny days per year. Seasonal cloud cover and humidity affect output, but a well-designed system still produces strong, reliable energy 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 Panel Systems in Lexington
We’ve mapped solar installations across Lexington, KY so you can see just how many of your neighbors have already made the switch. Explore the map below to discover which neighborhoods and communities are leading the way toward cleaner, more affordable energy.
Leasing Solar Panels
If paying the full cost of a solar system upfront isn’t the right fit for you, Palmetto offers a solar lease through its LightReach program — available to homeowners in Kentucky, including Lexington. With a lease, you pay a fixed monthly amount (for example, $81/month for a medium-sized home) while Palmetto owns and maintains the system. There’s no large upfront investment, and you start saving from day one.
Leasing has a clear advantage over a cash purchase when it comes to maintenance and system performance. When you buy outright, you’re responsible for repairs, monitoring, and upkeep over the system’s 25-year life. With a LightReach lease, Palmetto handles all of that — and backs it with a 90% production guarantee. If the system underperforms, that’s Palmetto’s problem, not yours. Learn more about how leasing compares to buying.
It’s worth noting that a solar lease is different from a Power Purchase Agreement (PPA). With a lease, you pay a fixed monthly amount regardless of how much energy your panels produce. With a PPA, you pay per kilowatt-hour generated — so your bill may vary month to month. Currently in Kentucky, Palmetto offers the lease option through LightReach. Both approaches can deliver similar annual savings, but the lease gives you more predictability in your monthly 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!
Explore LightReach LeasingFrequently Asked Questions
Yes, solar makes sense for many Lexington homeowners. With 4.7 peak sun hours per day, Kentucky net metering through KU, and electricity rates that have risen 13% since 2021, solar can help stabilize your energy costs. A typical Lexington home can save around $34,000 over 25 years.
Upfront cost doesn’t have to be a barrier. Palmetto’s LightReach solar lease lets you go solar with no money down — starting at $81/month for a medium-sized home — so you can start saving from day one without any large upfront investment.
Yes, Lexington homeowners have access to net metering through Kentucky Utilities (KU). Under Kentucky state law (S.B. 100), KU is required to offer net metering for solar systems up to 45 kW. KU offers full retail net metering, meaning excess electricity your panels send to the grid earns a credit at the same rate you pay for power.
This means Lexington homeowners can offset their utility bills with surplus solar energy — making solar a more financially effective option year-round, especially during Kentucky’s sunnier spring and summer months.
Yes, solar panels can increase your home value in Lexington, KY. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them. For a $300,000 home in Lexington, that could mean over $12,000 in added value.
This benefit applies to owned solar systems. If you lease your panels, the value increase may not transfer the same way, since the system is owned by the solar company — something to keep in mind when evaluating your options.
The most accessible way for Lexington homeowners to go solar is through Palmetto’s LightReach lease — starting at just $81/month for a medium-sized home with no upfront cost. Palmetto owns and maintains the system, so there’s nothing out of pocket to get started.
For those preferring a cash purchase, a typical Lexington system costs around $20,340. 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 make strong financial sense — especially with a lease option. With Palmetto’s LightReach program, there’s no upfront cost. Your fixed monthly lease payment (starting at $81/month for a medium-sized home) is typically lower than your current electricity bill, meaning you can start saving from day one.
Over 25 years, a typical Lexington home can save around $34,000. With Kentucky electricity rates rising 13% since 2021, locking in a predictable monthly payment helps protect against future rate increases.
Palmetto is a strong choice for solar installation in Lexington, KY. We’re a national company with a local focus, serving 20,000+ customers across 31 states since 2011, with an approval rating over 85%.
We offer some of the best financing options available, including our LightReach lease — starting at just $81/month with no upfront cost. Our trusted install network handles everything from permits to activation, and we back every system with a 90% production guarantee.
With Palmetto’s LightReach lease, Lexington homeowners can go solar with no upfront cost. Palmetto owns the system and handles all installation, monitoring, maintenance, and includes a 90% Production Guarantee. For a typical 6.38 kW system, the estimated monthly payment is approximately $81/month — often less than your current electricity bill, so savings start immediately.
Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower monthly payments — an advantage not available with a cash purchase today.