Federal solar credit ended Dec 31, 2025
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Solar costs · Kentucky

Solar Panel Cost in Kentucky

Fact-checked by Sorted & Saved data desk
Updated Data verified Nov 5, 2026

A typical Kentucky home uses 1,047 kWh a month[1] of electricity. Covering that with solar takes a system of about 9.3 kW est.[1,2], which costs roughly $28,500 to $38,500 est.[1,2,3] before incentives at the state's median installed price. With Kentucky's average residential price of 14.20¢ per kWh[4], our model puts payback at about 22 years est.[1,2,3,4,5]. Your quote, roof and utility plan will move these numbers, so treat them as a starting point.

On this page [ 7 ]

Kentucky solar at a glance

Average electricity price14.20¢/kWh[4]Jan–Aug 2026 average (preliminary)
Average home use1,047 kWh/mo[1]2024 average
Solar output per kW1,344 kWh/yr[2]PVWatts estimate for Louisville
Median installed price$3.60/W[3]Estimate, before incentives
Typical system9.3 kWSized to cover 100% of use
Typical price$33,500Estimate, before incentives
Year-1 savings$1,360Estimate
Payback22 yearsEstimate, cash purchase

Estimates use the inputs above and the assumptions in our methodology: Kentucky Utilities credits exports from new solar customers at about 7.53¢ per kWh; we use it for Kentucky. Other utilities differ. Prices rise 2.5% a year; panels lose 0.5% a year.

Solar cost in Kentucky by system size

Same assumptions as the typical home above; only the system size changes. Prices are the state median before incentives and include the incentives our calculator applies by default in Kentucky.

SystemPrice before incentives[3]After incentiveskWh in year 1[2]Year-1 savings[4][5]Payback (years)
4 kW$14,400$14,4005,380$58022
6 kW$21,600$21,6008,060$88022
8 kW$28,800$28,80010,750$1,17022
10 kW$36,000$36,00013,440$1,46022
12 kW$43,200$43,20016,130$1,75022

Incentives that lower the price in Kentucky

Federal · tax creditEnding soon

Business credit for leased and PPA systems (48E)

Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027[6]

If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.

Who
Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
Deadline
December 31, 2027
Checked
November 5, 2026

All Kentucky incentives, including utility and local programs →

How Kentucky utilities credit your solar

Net metering under KRS 278.465-278.468 is offered by PSC-regulated utilities (not TVA or municipal utilities). Since the 2019 Net Metering Act (SB 100), excess generation for new customers after January 1, 2020 is compensated with a dollar-denominated bill credit at a utility-specific rate set by the PSC, while earlier customers keep 1:1 kWh credits for 25 years.[7]

We have not added every Kentucky utility yet, so the estimates on this page use the state-level rule: Kentucky Utilities credits exports from new solar customers at about 7.53¢ per kWh; we use it for Kentucky. Other utilities differ.[5]

Full Kentucky net metering and export-credit rules →

FAQ

Frequently asked questions

How much do solar panels cost in Kentucky?

At the state median installed price of $3.60 per watt est.[3], a 9.3 kW est.[1,2] system that covers a typical home's use costs about $33,500 est.[1,2,3] before incentives. Quotes vary with roof, equipment and installer.

How long does solar take to pay for itself in Kentucky?

For a cash purchase at the state's average electricity price of 14.20¢ per kWh[4], our model estimates about 22 years est.[1,2,3,4,5]. Your utility's export credit and rate plan matter a lot; see the export-credit table above.

Is there still a federal solar tax credit?

Not for homeowners who buy. The Federal Residential Clean Energy Credit (25D)[8] does not apply to systems whose installation is completed after December 31, 2025. Leased and PPA systems are different: the company that owns the system may still claim a business credit.

sources

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Every number on this page links to one of these sources. Dates show when we last checked each one.

  1. EIA Electric Sales, Revenue, and Average Price 2024, Table 5A: Residential average monthly bill by stateeia.gov · checked Nov 5, 2026
  2. NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)pvwatts.nlr.gov · checked Nov 5, 2026
  3. U.S. Distributed Solar and Storage 2026 Data Update (Barbose, Darghouth, O'Shaughnessy, Forrester), Berkeley Labeta-publications.lbl.gov · checked Nov 5, 2026
  4. EIA Electric Power Monthly, Table 5.6.B: Average price of electricity by state, year-to-date (August 2026, preliminary)eia.gov · checked Nov 5, 2026
  5. Kentucky PSC Order (nunc pro tunc), Case No. 2025-00113, Kentucky Utilities Company rate case (Mar 4, 2026)psc.ky.gov · checked Nov 5, 2026
  6. Public Law 119-21 - Sec. 70513(a) and (g)(5) (48E); Sec. 70512(a) and (l)(4) (45Y)govinfo.gov · checked Nov 5, 2026
  7. Kentucky PSC Order, Case No. 2019-00256 (Dec 18, 2019)psc.ky.gov · checked Nov 5, 2026
  8. IRS FS-2025-05: FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under Public Law 119-21 (OBBB)irs.gov · checked Nov 5, 2026

State data last re-checked November 5, 2026.

Change log

  1. Monthly output per kW in Louisville updated to [77.5, 84.2, 103.6, 122.7, 140.6, 141.4, 139.9, 142.7, 120.7, 113.5, 83.1, 73.6] kWh/kW/month (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).
  2. Average solar radiation on the panels in Louisville updated to 4.79 kWh/m2/day (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).
  3. Solar output per kW in Kentucky (PVWatts, Louisville) updated to 1343.5 kWh/kW/yr (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).