Lexington, KY Solar Panels
Solar Power in Lexington
If you live in Lexington, KY, and have watched your electricity bill climb year after year, you’re not alone. Kentucky electricity prices have increased 19% from 2020 to 2024, with residential rates now averaging 12.98 cents per kWh—leaving many local homeowners searching for a way to take control of their energy costs.
Solar installation offers a practical path forward. In this guide, our team walks you through everything you need to know about solar installation in Lexington, from how home solar panels work to what to expect during the process.
How Much Do Solar Panels Cost in Lexington, KY?
See what solar really costs in Lexington. This calculator uses actual installation data from homes across the area—including Beaumont, Hamburg, Andover, and Chevy Chase. No guesswork, just real local numbers to help you understand your options and make a confident, informed decision.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Kentucky electricity rates rose 19% from 2020 to 2024, so installing solar in Lexington helps you lock in more predictable, long-term energy costs.
- Lexington homeowners can save around $37,000 over 25 years with solar, and a medium home only needs about a 6.8 kW system.
- Local incentives make going solar easier, including net metering, LG&E/KU Solar Share, and a 20% Solarize Lexington group-purchase discount for Fayette County.
Lexington Electricity Prices
Have you noticed your Lexington electricity bill creeping up? You’re not alone—and understanding local rates can help you plan smarter energy decisions.
Kentucky’s residential electricity rates rose from 11.5 cents per kWh in 2021 to 13.0 cents per kWh in 2024, according to the U.S. Energy Information Administration. Utilities like Kentucky Utilities serve many Lexington homes.
Solar panel installation in Lexington lets homeowners generate their own power on-site. Instead of relying fully on the grid, you can offset rising utility costs by producing clean energy directly from your roof.
Because electricity rates tend to climb over time, solar installation can offer long-term predictability. Locking in your own energy source helps Lexington households plan ahead and reduce their exposure to future rate increases.
Price of Energy: Kentucky vs National Average
Lexington Area Utility Providers
Most Lexington, KY homeowners get their power from Kentucky Utilities (KU). In 2023, KU charged about 12.0¢ per kWh—slightly below Kentucky’s state average of 12.70¢ and well under the national average of 16.0¢.
KU’s below-average rates reflect Kentucky’s historic reliance on affordable, locally sourced coal. Still, rates have climbed steadily as aging infrastructure, fuel costs, and grid upgrades push local electricity bills higher year after year.
Even with lower-than-average rates, those costs keep rising. Solar panel installation in Lexington lets you generate your own power, giving you more predictable energy costs and less exposure to future utility rate increases.
Lexington Utilities Electricity Rates
Kentucky Solar Incentives
Several solar incentives in Kentucky can help Lexington homeowners lower the upfront cost of going solar. Here’s what’s available in your area.
Kentucky’s net metering policy lets you earn bill credits for extra energy you send to the grid. Programs like Duke Energy’s PowerPair rebate and LG&E/KU’s Solar Share offer additional ways to save.
Locally, Solarize Lexington gives Fayette County property owners a 20% discount through group purchasing. With LightReach solar leasing, Palmetto handles the commercial ITC and passes savings along through lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Kentucky Net Metering Policy | Net Metering | Kentucky requires most utilities to offer net metering to solar customers, though compensation rates vary significantly by utility. | Learn More |
| LG&E and KU Solar Share Program | Community Solar | LG&E and KU Energy customers can subscribe to shares of a local community solar project and receive bill credits without installing panels on their property. | Learn More |
| Solarize Lexington | Rebate | Homeowners and property owners in the Lexington-Fayette County MSA can receive a 20% discount on solar panel installation through the city’s group-purchasing Solarize program. | Learn More |
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 eligible system size has been increased from 30 kW to 45 kW under SB 100, and compensation rates are overseen by the Kentucky Public Service Commission (PSC). Homeowners in Lexington are served by LG&E and KU Energy, which currently offer full retail net metering, meaning excess energy you send to the grid is credited at the same rate you pay for electricity — the best possible outcome for solar owners.
If you are served by LG&E or KU Energy, as most Lexington residents are, net metering remains a strong financial benefit.
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. This is an ideal solution for renters, homeowners with shaded or unsuitable roofs, or anyone who wants to support local solar generation without the upfront cost and maintenance of a private rooftop system.
Customers purchase shares of a local community solar project for less than 20 cents per day, with a monthly subscription fee of $5.55 per share and no start-up costs. In return, participants receive corresponding bill credits each month based on the energy their shares produce. The monthly fee may change over time, but only if approved by the Kentucky Public Service Commission.
The Solar Share Program is open to LG&E and KU Energy residential and business customers, including those in Lexington. It provides a straightforward, low-commitment way to participate in solar energy and reduce your effective electricity costs without any installation, permitting, or long-term maintenance responsibilities. Visit the official LG&E/KU Solar Share page to learn more and sign up.
The City of Lexington has relaunched the Solarize Lexington program, which offers homeowners and other property owners a 20% discount on solar panel installation through a partnership with a vetted local solar installer. The program uses a group-purchasing model to negotiate wholesale rates, passing the savings directly to participants — no special qualifications or income limits required.
The program is open to all homeowners in the Lexington-Fayette County MSA, including residents of Bourbon, Clark, Fayette, Jessamine, Scott, and Woodford Counties. Non-profits, small businesses, and places of worship are also welcome to apply, making this one of the more broadly accessible local solar programs in Kentucky.
Important deadlines for 2026: Interest forms must be completed by October 2, contracts must be in place by October 16, and installation must be completed by the end of 2026. Visit the official Solarize Lexington page on the City of Lexington’s website to submit an interest form and learn more about the program.
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 enjoys four distinct seasons, with sunny summers and cooler, sometimes cloudy winters. Despite occasional overcast days, its solar potential stays strong year-round—proving the right system delivers reliable energy 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
See how Lexington is going solar. We organized solar installation data across the country and mapped it right here at home. Explore the hexagons to discover how many of your neighbors, in communities all around Lexington, have made the switch to clean energy.
Leasing Solar Panels
Good news for Lexington homeowners: Palmetto offers solar leasing here through our LightReach program. Instead of paying thousands upfront, you make one predictable monthly payment while Palmetto owns and cares for the system.
Unlike a cash purchase, you skip the large investment and hand off all maintenance to us. If a panel needs attention, that’s our job, not yours. Your LightReach lease also includes a production guarantee, so you can feel confident your system is performing as promised.
Want to weigh your choices? Our guide on whether to buy or lease solar panels walks through the differences, so you can decide what fits your home and budget best.
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, Lexington, KY has net metering. Kentucky law requires most utilities—including LG&E and KU Energy, which serve most Lexington homes—to offer net metering to customers with qualifying solar systems.
With net metering, extra electricity your panels send to the grid earns you bill credits. LG&E and KU currently offer full retail net metering, so your excess energy is credited at the same rate you pay, and eligible systems can now be up to 45 kW.
Yes, in most cases solar panels can increase your Lexington home’s value—but this applies to purchased or owned systems, not leased ones. A Zillow study found homes with solar sold for about 4.1% more than comparable homes without it.
With a leased or third-party owned system, resale works differently. Because a buyer typically assumes the lease agreement, leased panels generally aren’t added to your home’s appraised value the way an owned system would be.
With Palmetto’s LightReach lease, Lexington homeowners can go solar for a low fixed monthly payment—starting around $87/mo for a medium home—with no upfront cost. Palmetto owns and maintains the system, so there’s no large investment to recoup.
If you prefer to buy, a cash purchase for a typical Lexington home runs about $21,500. Note that the federal 30% tax credit is no longer available for residential cash purchases after the 2025 federal law change. See the calculator above for pricing based on your home size.
With Palmetto’s LightReach lease, you pay one simple monthly amount that covers your solar panel system, installation, monitoring, maintenance, and a comprehensive protection program with a 90% Production Guarantee. There’s no upfront cost to you.
For a typical 6.80 kW system in Lexington, KY, the estimated payment is about $87/month. Because Palmetto owns the system, it claims the 30% commercial tax credit and passes those savings on through lower payments—so you can start saving from day one.
Lexington homeowners can access several state and local solar programs. Kentucky’s net metering policy credits you for extra energy sent to the grid, and LG&E/KU customers can join the Solar Share community solar program. Locally, Solarize Lexington offers a 20% group-purchase discount across the Fayette County area.
The federal 30% residential tax credit is no longer available for cash purchases after the 2025 federal law change. However, with a LightReach lease, Palmetto claims the commercial ITC and passes those savings through your monthly payments.
Yes. Solar panels work well in Lexington’s climate. The area averages about 4.7 peak sun hours per day and enjoys four distinct seasons, from sunny summers to cooler, sometimes cloudy winters.
Production varies by season—output is highest in summer’s long days and lower in December. Panels still generate electricity on cloudy and overcast days, just at reduced levels. Across the full year, Lexington’s solar potential stays strong and reliable for local homes.
Solar panels are low maintenance. Because Lexington gets rain throughout the year, panels typically stay clean on their own, and with no moving parts, there’s little that needs upkeep.
With a LightReach lease, Palmetto owns the system and handles all maintenance, monitoring, and repairs at no extra cost. Your lease also includes a 90% Production Guarantee, so you can feel confident your system keeps performing as promised.