Global Solar Project

Solar by state › Kentucky

Home solar in Kentucky

Since 2020 Kentucky lets the PSC set a lower dollar credit for solar you send to the grid; LG&E pays new customers about 7.1 cents/kWh in 2026, well under retail, and there is no state solar rebate or tax break.

Facts checked 2026-11-01, each with a source link below. Programs change often: confirm with your utility, installer and a tax professional before you sign.

13.8¢average home price per kWh (EIA, August 2026)
Harder case for solarCheap power, export credits set below retail for new systems, and no state rebate, tax credit or solar tax exemption found. Solar pays best on power you use yourself.

We give free home reviews in Maryland, DC and Virginia today. How to compare solar options

Net metering Replaced by a lower credit

Under SB 100 (2019, in effect Jan. 1, 2020), each utility's export credit is set by the PSC in a rate case, paid as a dollar bill credit that rolls forward to the next bill. Credits can't move to another home, and no cash is paid if you close the account. Systems in service before a utility's first new-rate order keep 1:1 kWh net metering for 25 years at that address. Systems up to 45 kW qualify. Once net-metered capacity reaches 1% of a utility's peak, it may stop offering net metering to new customers. TVA-served areas in western Kentucky follow TVA/local power company rules instead. Source

  • 2020-01-01: SB 100 takes effect
  • 2021-09-25: LG&E/KU NMS-2 export credits start for new systems
  • 2026-03-04: PSC confirms LG&E NMS-2 residential credit of $0.07089/kWh

Solar credits (SRECs) No market

Kentucky has no renewable portfolio standard and no SREC market.

Rebates and incentives

We found no statewide solar rebate or tax credit open in Kentucky right now. Your utility, city or county may still offer one, so ask your installer.

Taxes

Property tax: None found: no state property tax exemption for home solar.
Sales tax: None found: home solar equipment appears to pay the normal 6% sales tax.

Solar laws

  • SB 100 (2019), KRS 278.465–278.466 (2019). Lets the PSC set the export credit through rate cases, raises the size limit from 30 to 45 kW, lets utilities recover fixed costs from solar customers, and protects existing systems' 1:1 credit for 25 years. Source
  • PSC Case 2025-00114 (LG&E rate case) (2026). Keeps LG&E's NMS-2 export credit at its current level: $0.07089 per kWh for residential customers. Source

Community solar

No state community solar law; a few utilities have offered their own small subscription programs.

Timeline

  1. SB 100 passes the General Assembly
  2. SB 100 takes effect
  3. PSC sets first LG&E (6.924 cents) and KU (7.366 cents) NMS-2 export rates
  4. Federal 30% homeowner tax credit (25D) ends
  5. PSC LG&E rate order keeps NMS-2 credit at current level
  6. PSC corrects LG&E residential export credit to $0.07089/kWh

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

We give free home reviews in Maryland, DC and Virginia today. How to compare solar options