Solar Panels in Kentucky2026 Cost Guide & Incentives
Average cost, state incentives, payback estimates, and how to find certified installers in Kentucky.
$17,000–$28,000
Avg system cost
$11,900–$19,600
After 30% ITC
4.6 hrs/day
Peak sun hours
$0.119/kWh
Avg rate
Is Solar Worth It in Kentucky?
Based on a home with a $150/month electric bill in Kentucky
Est. system size
8.3 kW
Gross cost
$24,036
Federal tax credit
−$7,211
Net cost
$16,825
Year-1 savings
$1,800
20-year savings
$45,911
Estimated payback: 9.3 years — then 10 years of free electricity.
* Estimates assume $2.90/W installed, 92% solar offset, and 3% annual electricity rate inflation. Get an installer quote to confirm your actual savings.
Kentucky Solar Incentives & Policies
Federal
Investment Tax Credit (ITC)
30%
of total system cost — off your federal tax bill
Available through 2032
Kentucky State
State Incentive
Net metering available; no state credit
Additional Kentucky Solar Policies
Net Metering: Available — excess energy credited to your bill
Property Tax Exemption: No exemption — solar adds to assessed value
Sales Tax Exemption: Sales tax applies to solar equipment purchase
Solar Installation Cost in Kentucky by System Size
| System size | Gross cost | After 30% ITC | Year-1 savings |
|---|---|---|---|
| 5 kW | $12,272,800 | $8,590,960 | $919,085/yr |
| 7 kW | $17,181,920 | $12,027,344 | $1,286,718/yr |
| 9 kW | $22,091,040 | $15,463,728 | $1,654,352/yr |
| 12 kW | $29,454,720 | $20,618,304 | $2,205,803/yr |
* Costs based on $2.90/W national average. Kentucky installer pricing may vary ±15%.
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Frequently Asked Questions — Solar in Kentucky
How much do solar panels cost in Kentucky?
Solar installation in Kentucky typically costs $17,000–$28,000 before incentives. After the 30% federal tax credit, most homeowners pay $11,900–$19,600 net.
Is solar worth it in Kentucky?
Yes — Kentucky homeowners benefit from 4.6 average peak sun hours per day. The 30% federal ITC combined with net metering available; no state credit make the financial case strong for most homeowners.
What state incentives are available for solar in Kentucky?
Net metering available; no state credit. On top of state incentives, all Kentucky homeowners qualify for the federal 30% Investment Tax Credit (ITC).
How long is the payback period for solar in Kentucky?
Based on Kentucky's average electricity rate of $0.119/kWh and 4.6 peak sun hours, most homeowners see payback in 9.3–13 years. Systems then produce free electricity for 15–20+ more years.
Does Kentucky have net metering?
Yes — Kentucky has a net metering policy that credits your utility bill for excess electricity your system sends back to the grid. This significantly improves your ROI.