Solar Panels in Kentucky

Despite having fewer incentives and rebates than other states, solar panel systems in Kentucky are still surprisingly affordable. Decreased manufacturing and material costs and quicker installations have contributed to a 53 percent drop in Kentucky solar costs in the last five years. Though the cost varies depending on the location, a typical 5.0-kilowatt solar power system costs about $21,250 to install. That figure falls to $14,875 after factoring in the 30 percent federal tax credit, and the cost is further reduced after considering an average utility bill savings of about $600 per year.

Another favorable aspect of solar power in Kentucky is a strong net metering policy. Under current net metering rules, solar system owners in the state are credited at the retail rate for any surplus energy they send back to the grid. This helps to counteract the variations in energy generation throughout the year and ensures that solar owners get the maximum return on their investment. However, this policy may soon change for new solar system installations.

Kentucky House Bill (HB) 227 seeks to sharply reduce the rate at which surplus energy is credited, so homeowners hoping to lock in a favorable net metering rate should act quickly.

Coal has always been one of Kentucky’s most cherished resources. Generations of families grew up around – and spent much of their lives working in – the state’s many mines and processing plants. Coal kept energy prices low and formed the backbone of the state’s economy. In many ways, coal represented the lifeblood of the largely rural state. In recent decades, however, the reality of fossil fuels has taken its toll on an industry that was once so vital to Kentucky and its people.

Though solar energy is sometimes perceived as a threat to the coal industry and the people who populate it, the reality is that solar may be the key to their future. Some coal companies have already experimented with converting shuttered strip mines into farms for solar panels in Kentucky. Political figures and private groups have advocated for programs to assist former coal workers in retraining for sustainable jobs in the fledgling Kentucky solar industry. Despite the lack of incentives and Kentucky utilities rebates, all the factors are in place for solar power to propel the state’s coal regions into a cleaner and more sustainable future.

Though Kentucky solar power is a good investment virtually anywhere in the state, the costs and benefits vary depending on the location. Here are several cities that have taken the lead in promoting and encouraging Kentucky solar.

Louisville is one of Kentucky’s best-known cities, and it’s also a popular city for solar. The cost for installing solar panels for the home Louisville KY are in line with the state average. There are plenty of highly regarded companies that offer affordable solar panel installation Louisville KY as well, and the city’s Energy Project Assessment District (EPAD) program makes financing a solar project easy.

Solar panels are becoming increasingly popular in the Bowling Green area because of rising local energy costs. Electricity rates in the city run nearly five percent higher than the Kentucky average, making solar an appealing alternative. Though there are few local or state incentives available, the cost of installing a solar panel system in Bowling Green is still worth the long-term financial and environmental benefits.

Installing solar panels Lexington KY also offers a number of benefits. The state’s second-largest city is well-located to receive abundant sunshine through much of the year. Installation costs are also roughly in line with the state average. This makes Lexington a prime location for homeowners to reap the benefits of solar panels in Kentucky.

Installing a solar power system is a serious investment that may not be right for every homeowner. However, Kentucky’s rising energy prices make the efficient and eco-friendly power of solar an appealing option. The statewide average of nearly five sun-hours a day makes solar panels in Kentucky a viable energy source. Strong net metering policies also ensure that homeowners get the most out of their investment.

Best of all, we simplify the process by providing the tools and information you need to make an informed choice. To see whether solar in Kentucky is the right choice for you, get started now by estimating your savings with our solar calculator.

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