Is A Kentucky Solar Program Right for You? A Closer Look

In 2019, solar energy production surpassed consumption in the United States for the first time since 1957. As many homeowners are going solar, they are finding out more about their home energy needs.

So, what happens when your home produces more energy than you consume? How can you offset the costs of solar installation and excess energy?

The answer? A Kentucky solar program. Keep reading to learn what this means.

What Is a Kentucky Solar Program?

A Kentucky solar program includes solar and battery incentives, rebates, and tax credits for Kentucky homeowners.

Solar incentives vary by state, but some are offered to Kentucky residents.

You may qualify for Kentucky incentives based on solar in your area and your utility company.

Federal Solar Investment Tax Credit

The federal solar investment tax credit, ITC for short, has the largest impact on your solar costs. The credit can aid in lessening the upfront costs of going solar.

For example, if you were to install a PV solar system in 2020, you would have received a federal tax credit of 26% of the cost of your system. This is 26% off the full cost of the installation.

The incentives change over time so it’s best to brush up on Kentucky solar tax credits.

Solar Rebates

Kentucky doesn’t have a dedicated state rebate for solar panel installation.

However, some manufacturers offer their own solar rebates. LG is one of those manufacturers, but the programs are time-sensitive.

Typically, you’ll need to redeem your solar rebate within the year.

Ask installers in your area about the manufacturers they work with. They may also offer solar rebates to help you out with costs.

Net Energy Metering

In some states, net metering allows homeowners to get full retail rate credit for the amount of electricity sent back to the grid. This is electricity your solar panels produce but you do not use.

Before 2020, Kentucky had one of the best net metering policies in the country. Net metering was once required by all utilities in the state but the law has been scrapped.

Surplus electricity generation in Kentucky is no longer credited on your next bill at the utility’s full retail rate. The rate is much lower and is determined by the utility.

Regardless of the laws, solar homes reap some credit for the solar power that they don’t use.

Because you don’t receive the full amount, it’s essential to install the right-sized solar system. You can also look into installing onsite energy storage so you don’t have to send power back to the grid for a reduced credit.

Is Going Solar Right for You?

Kentucky residents can sign up for the federal solar investment tax credit to offset the costs of installing a new residential solar system.

Although solar rebates don’t come from the state, you can find them through manufacturers and installers.

Compared to other states’ net metering policies, Kentucky is right there in the middle. You can sell energy back to the grid for a reduced amount or store excess solar power on your property.

Consider this Kentucky solar program guide if you want to go solar. Keep coming back for more articles like this on our blog!