Solar Power in Kentucky: 2026 Costs, Incentives & Savings

Solar in Kentucky

Kentucky electricity prices rose 19% between 2020 and 2024, and homeowners across the state are looking for ways to take back control of their energy bills. Solar panels for your home are one of the most practical ways to do exactly that.

Whether you’re just starting to explore your options or ready to take the next step, this guide covers everything you need to know about solar installation in Kentucky — from how the process works to what you can realistically expect to pay.

KENTUCKY by the Numbers

40th Most residential solar in the United States
9k Households have installed solar panels
4.7 Average daily peak sun hours
~$48k Kentucky average savings over 25 years

Kentucky Solar Panel Cost

Wondering what solar actually costs in Kentucky? This calculator uses real installation data from Palmetto customers across the state — from Louisville and Lexington to Bowling Green and Paducah — to give you a local, honest estimate. We show both leasing options (like our LightReach program, with no upfront cost) and cash purchase, so you can compare what works best for your home.

Your Monthly Payment
Estimated monthly cost with LightReach
$114/mo
As low as
$114/mo

Why Lease Solar?
Following the 2025 Big Beautiful Bill, the federal 30% solar tax credit is no longer available for cash purchases. With a LightReach lease, Palmetto owns the system and still qualifies for the commercial ITC — passing those savings through to you via lower monthly payments.

• No upfront investment
• Palmetto handles all maintenance
• 90% Production Guarantee
• Comprehensive protection program included

System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home in Kentucky.
Recommended System
8.91 kW
Typical for your home size in KY

Cost Breakdown
Your estimated investment

System Cost
$26,559
Cost Per Watt
$2.98/W
Final Cost
$26,559

Savings
Your total financial benefit

Monthly Savings
Average utility bill reduction
$109
Payback Period
Break-even point
16.0 years
25-Year Savings
$48,012

Get Your Personalized Quote

Palmetto Reviews

The process from beginning to the end of having our system installed was nothing but great! They answered all questions and were willing to update on everything that was going on during the process. It’s been a couple of months now since we’ve had the system installed and can tell a huge difference in our energy bill already.

Zachery Umphrey, Lillington, North Carolina

I got my solar system a few months ago and have already seen a huge reduction in my power bill. Palmetto did a great job on my install and have been good to work with. I am looking forward to having no light bill at all one day as I reduce my carbon footprint. Solar is the new power source of the future and Palmetto Solar is the place to buy it.

Van Guines, Richmond, Virginia

Palmetto Solar installed my solar panels and I have seen a significant energy cost decrease. To add to the review, the personnel I have worked with were amazing. They were informative, responsive, truly concerned about my experience, and answered all my questions throughout the entire process. If you are looking for Solar, I highly recommend Palmetto Solar.

Darrell Martin, Beaver, Pennsylvania

Key Takeaways

• Kentucky electricity prices rose 19% between 2020 and 2024, making solar a smart way to take control of your monthly energy bill.
• Leasing solar through Palmetto’s LightReach program means no upfront cost, no maintenance, and a 90% Production Guarantee — solar made simple.
• Kentucky homeowners can save around $48,000 over 25 years with solar, plus access local incentives like net metering, Duke PowerPair, and Solarize programs.

Kentucky Electricity Prices

Electricity costs in Kentucky have been climbing — and for most homeowners, that trend shows no signs of stopping.

Kentucky rates rose from 11.5 cents per kWh in 2021 to 13.0 cents in 2024 — a 13% jump in just three years. Nationally, rates climbed even faster, reaching 16.5 cents per kWh by 2024.

Solar panels let homeowners generate their own electricity, reducing how much power they need to buy from the grid. The more you produce at home, the less exposed you are to rate increases you can’t control.

Palmetto’s LightReach program makes solar accessible with no upfront cost. You get a low, fixed monthly rate while Palmetto owns, maintains, and backs the system with a 90% Production Guarantee — so rising utility rates become someone else’s problem.

Price of Energy: Kentucky vs National Average

Kentucky Area Utility Providers

Kentucky is served by four main electric utilities — Kentucky Utilities (12.0¢), LG&E (12.4¢), Duke Energy (12.2¢), and Kentucky Power (14.2¢) per kWh. Based on 2023 data, all four fall near the state average of 12.70¢.

Even at today’s rates, electricity costs can still rise over time. With Palmetto’s LightReach program, there’s no upfront cost — Palmetto owns, maintains, and guarantees your system’s production, helping you plan for a more predictable energy future.

Kentucky Utilities Electricity Rates

Kentucky Solar Incentives

Kentucky homeowners have access to a range of solar incentives in Kentucky — from utility rebates to community solar programs — that can meaningfully reduce the cost of going solar.

Kentucky state law requires all investor-owned utilities (IOUs) and electric cooperatives to offer net metering to customers with qualifying solar energy systems. The eligible system size has been increased from 30 kW to 45 kW under SB 100, and compensation rates are overseen by the Kentucky Public Service Commission (PSC).

Duke Energy Kentucky transitioned to Net Metering II (NM II) in January 2025, following PSC approval in November 2024. Under NM II, excess energy is credited at the lower “avoided cost” rate rather than the full retail rate, making battery storage more valuable for Duke customers. Importantly, customers who installed solar before January 2025 are grandfathered into the original full retail rate for 25 years.

Kentucky Solar Irradiance

Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Kentucky gets around 4.5 peak sun hours daily, with warm summers boosting production. Cloudy winters reduce output slightly, but a well-sized system still generates strong savings year-round.

About the Data

This map shows average daily solar energy across Kentucky based on historical data.

What Can the Average Kentucky Solar System Power?

Summer Production (July)

• 45.8 kWh/day
• Your 10 kW system could power 3.6 average Kentucky homes.
• Run central AC for 18 hours AND power all other appliances.

Winter Production (December)

• 21.7 kWh/day
• Your 10 kW system could power 2 average Kentucky homes.

Annual Production

• 13,396 kWh/year.
• Offset 10 tons of carbon dioxide emissions.

Go Solar with LightReach — No Upfront Cost

For Kentucky homeowners, Palmetto offers solar through its LightReach energy plan — a solar lease with no upfront cost. With LightReach, you pay a simple fixed monthly amount rather than purchasing the system outright. Palmetto owns, installs, and maintains everything, so there’s nothing for you to manage or repair.

Frequently Asked Questions

Does Kentucky have net metering?

Yes, Kentucky requires most utilities to offer net metering to solar customers. LG&E and KU Energy offer full retail net metering.

Do solar panels increase your home value in Kentucky?

Yes — but only if you own the system outright. Research from Zillow found that homes with solar panels sell for approximately 4.1% more than comparable homes without them.

How much does it cost to go solar in Kentucky?

For most Kentucky homeowners, the most accessible way to go solar is through Palmetto’s LightReach program — a solar lease with no upfront cost.

How does leasing solar work?

Palmetto’s LightReach is an all-inclusive solar lease. One fixed monthly payment covers your solar system, installation, monitoring, maintenance, and a 90% Production Guarantee.

Do solar panels work in Kentucky’s climate?

Yes. Kentucky averages 4.7 peak sun hours per day, which is enough to make solar a practical choice for most homeowners.

What solar incentives are available in Kentucky?

Kentucky homeowners have access to several state and local solar incentives, including net metering, Duke Energy’s PowerPair program, and Solarize Lexington.