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Kentucky

Kentucky solar in 2026

Kentucky does not have one statewide solar answer. The first question is whether your supplier still has an obligation to offer net metering to a new customer-generator. KRS 278.466 lets a supplier end that obligation once its cumulative net-metering capacity reaches 1 percent of its single-hour peak load. If a salesperson skips that question, the rest of the quote is premature.

In May 2026, Kentucky's residential average came to 14.98 cents per kWh. PVGIS estimates annual output from 1,339.8 through 1,384.1 kWh per kW. KRS 278.466 lets a utility stop offering net metering after the 1 percent peak-load threshold. New export compensation is a PSC-set, dollar-denominated bill credit. Credits carry forward but cannot transfer, and there is no cash refund when the account closes.

Kentucky power costs versus a supplier-set export value

At the statewide cash median, a paid-off array produces electricity near 7.5 cents per kWh across 25 years. Compare that with the retail bill, but stop there. Kentucky does not promise that every surplus kWh gets that same value. Export compensation depends on the supplier and the PSC-set rate.

Energy sourceTypeAverage priceWhat that means
Kentucky household electricityElectricity14.98¢ per kWhEIA's statewide residential average for May 2026.
Kentucky home gasNatural gas$29.48 per McfMay 2026 EIA residential data, approximately 9.7 cents per thermal kWh.
Owned Kentucky rooftop solarElectricity~7.5¢ per kWhA 25-year levelized cost using EnergySage cash data and PVGIS generation. It refers to electricity used at the property; exported power follows the policy below.

The electricity benchmark is from EIA Table 5.6.A, May 2026. Kentucky residential gas comes from EIA natural gas prices, and a Mcf represents about 304 thermal kWh. Our solar calculation is documented on the methodology page.

Kentucky production is steady. Policy availability is not.

Paducah is our high city and Lexington the low city, but the whole set stays within a tight band. A roof in either city can produce. The buyer risk sits upstream: availability, compensation rate, and credit rules at the serving utility.

Local benchmarkAnnual modeled yield per installed kWYearly modeled output at 14.94 kW
Louisville1,35720,280 kWh
Lexington1,34020,017 kWh
Bowling Green1,35320,211 kWh
Paducah1,38420,678 kWh

Method: PVGIS v5.2 model runs by Solar Learning Lab on August 18, 2026, using the NSRDB radiation database. Assumptions: fixed roof mount, south facing, 30 degree tilt, 14 percent losses. Your roof will differ.

The 1-percent cutoff changes the buyer's first call

KRS 278.466, enacted through 2019 Senate Bill 100, requires retail electric suppliers to offer net metering to eligible customer-generators they serve or solicit. There is a hard exception: once cumulative net-metering capacity reaches 1 percent of a supplier's single-hour peak load during a calendar year, the supplier has no further obligation to offer net metering to new customer-generators at any later time.

For a buyer today, that means verify availability before a site visit. If an offer exists, exported electricity is compensated through a PSC-set rate, recorded as a dollar bill credit, with excess carrying forward to the next bill. The credit is not transferable between customers or premises, and the supplier does not cash out accumulated credits when the account closes. Systems in service before the initial Commission order keep their earlier tariff provisions at the premises for 25 years. That is history, not a guaranteed deal for a new buyer.

Policy source: KRS 278.466.

Read KRS 278.466 as a sequence, not a slogan

KRS 278.466 came from 2019 Senate Bill 100, signed on March 26, 2019. The statute begins with an obligation: a retail electric supplier must offer net metering to eligible customer-generators it serves or solicits. Then comes the constraint that changes the buying sequence. Once cumulative net-metering capacity reaches 1 percent of the supplier's single-hour peak load during a calendar year, that supplier has no further obligation to offer net metering to new customer-generators at any later time.

That is why an installer's first useful document is not a panel layout. It is written confirmation from the serving supplier about availability. Kentucky Utilities serves customers across 77 Kentucky counties and five Virginia counties, while Louisville Gas and Electric serves Louisville and 16 surrounding counties. A statewide marketing line cannot answer a supplier-level availability question. The home's address can.

If the supplier is offering net metering, exported electricity that flows to the supplier is measured by a standard kWh meter and compensated at a rate the Public Service Commission sets through KRS Chapter 278 ratemaking. The bill treatment is dollars, not an automatic stockpile of retail-priced kWh. Excess credits roll into the next billing period, but they cannot move to another customer or premises, and the supplier does not cash them out when the account ends. That makes overproduction a weak moving strategy.

Older systems are a separate category. Facilities in service before the effective date of the Commission's initial net-metering order keep the tariff provisions in force when they began service at that premises for 25 years, including the earlier one-to-one crediting basis. A new buyer should not borrow that history for a current quote. Ask whether extra meters or distribution upgrades are needed as well, because the statute assigns those costs to the customer-generator.

Statute and enactment record: KRS 278.466 and Kentucky Legislature, 19RS SB 100.

Kentucky has no state incentive to rescue a weak tariff

Potential supportAvailabilityPractical read
Kentucky homeowner programNone identifiedWe found no income-tax credit, rebate, or exemption for home solar. The KRS 278.466 export terms carry far more weight in a payback forecast.
Federal 25DEnded December 31, 2025Lease and PPA providers remain able to claim 48E, so some value can show up in their pricing (CRS)

First qualify the utility, then use the calculator

This calculator is a production and cost screen. It cannot tell you whether your supplier is still accepting new net-metered customers, what its PSC-set export rate is, or whether added metering and distribution work will be charged to you. Get those answers first.

$134
1,359

The Kentucky city band is 1,339.8 to 1,384.1 kWh per kW per year. The small production difference is less important than whether your utility is still accepting net-metered customers.

$2.55

Cash quotes in Kentucky cluster near $2.55 per watt, against a $3.50 national 2024 median (LBNL). Use your quote.

Assumptions you can change
2.5%
7%
15
24c

Use the rate on your actual lease or PPA quote. There is no published statewide average we trust enough to hardcode.

2%
Estimated system: 7.9 kWAnnual usage: 10,734 kWhState credit: $0

Cash purchase

$20,145 after state credit

Year 1 benefit
$134/mo
Payback
12 years
20 year net position
$18,883

No Kentucky state solar incentive was confirmed. KRS 278.466 makes the serving utility's net-metering availability and PSC-set export credit more important than a generic statewide savings claim.

Solar loan

$266/mo 15 yr payment

Year 1 net
-$132/mo
Upfront
$0
20 year net position
-$8,902

We price loans at $3.75 per watt: the EnergySage Kentucky cash figure plus the $1.20 national loan-over-cash spread LBNL documents, because dealer fees get folded into loan pricing.

Lease / PPA

$0 down you buy the power

Year 1 net
-$81/mo
Upfront
$0
20 year net position
-$20,495

A lease or PPA provider can still claim the federal 48E business credit. Your supplier's tariff, credit treatment, and availability still govern the household economics.

Kentucky estimates, not quotes. Inputs use EIA Table 5.6.A, May 2026; our PVGIS production runs; and EnergySage August 2026 cost data. KRS 278.466 permits a supplier to stop offering net metering after its 1 percent peak-load threshold. We are a solar installer and we also partner with other solar companies. See our disclosures.

Kentucky specifics worth acting on

  • Call the serving utility before paying for a design. Ask whether it is still offering net metering to new customer-generators under KRS 278.466.
  • Demand the current export-credit rate in writing. A dollar credit is not the same thing as a retail kWh offset.
  • Do not plan to monetize excess credits after moving. The statute says they are not transferable between customers or premises and are not paid out at account closure.
  • Budget for potential additional meters or distribution upgrades. KRS 278.466 puts those customer-generator costs on the customer.

Ask Kentucky installers the availability question first

These Kentucky entries use Google Business listing ratings from our August 2026 pull. They are starting points, not endorsements. Ask every contractor for the serving utility's current net-metering availability in writing before you compare panel brands.

Solar Energy Solutions

Louisville, KY

4.9(26 Google reviews)

Daily Green Power

Elizabethtown, KY

4.9(90 Google reviews)

Southern Solar & Electrical Contracting LLC

Louisville, KY

4.9(39 Google reviews)

Pure Power Solar

Louisville metro

5.0(87 Google reviews)

Ratings snapshot: Google Maps, August 2026, via the DataForSEO SERP feed. Zero companies paid us and none are endorsed by us. Kentucky did not show a solar-specific license authority in our research, so pin down which electrical credential covers your job before signing.

Build a Kentucky estimate from the utility backward

Answer four questions against the EIA and PVGIS inputs shown here. We are a solar installer and we also partner with other solar companies. Details in our disclosures.

What does your monthly electric bill look like?

Kentucky average is $134 per month (EIA, 2024).