Find out if solar panels are right for your home in Kentucky.
The Bluegrass State, once known primarily for its rolling hills, horse farms, and coal mines, Kentucky is now making significant strides in harnessing the power of the sun.
Major projects across the state are shining examples of this solar surge. The E W Brown Solar Facility in Harrodsburg, one of the largest in Kentucky, produces 14.1 MW. This plant alone can power over 1,400 homes with clean energy. Similarly, the Crittenden Solar Facility in Dry Ridge, developed by Duke Energy, adds to the state's growing portfolio of solar projects.
For homeowners in Kentucky, this solar expansion is more than just large-scale projects; it's an opportunity to be part of a greener future. With incentives like the Federal Solar Tax Credit and evolving policies around net metering, solar energy is becoming an increasingly attractive option for Kentucky residents.
This article delves into what this solar growth means for homeowners in Kentucky, highlighting the benefits, incentives, and risks.
The average price for a home solar panel system in Kentucky is $14,700 for a 6kW system or about $2.45 per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.
| Average Cost 6 kW System | Average Cost 10 kW System | Estimated Tax Credit (10 kW System) | Average Cost/Watt | |
|---|---|---|---|---|
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Kentucky | $23,040 | $38,400 | $11,520 | $3.84 |
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Most Costly State(Michigan) | $22,680 | $37,800 | $11,340 | $3.78 |
| Least Costly State(Arizona) | $14,640 | $24,400 | $7,320 | $2.44 |
For most, the ideal solar system size is the sweet spot between price and capacity. The goal is to generate enough electricity to cover your home's demand while keeping overall costs low as possible.
I.E. Get the best bang for your buck.
| System Size | System Cost | Cost After Federal Tax Credit |
|---|---|---|
| 5 kW | $19,200 | $8,785 |
| 6 kW | $23,040 | $10,542 |
| 7 kW | $26,880 | $12,299 |
| 8 kW | $30,720 | $14,056 |
| 10 kW | $38,400 | $17,570 |
Remember, the decision to go solar is a personal one and depends on your specific circumstances and goals. While solar energy offers many benefits, it's important to consider both sides of the coin before making a decision.
In Kentucky, the unique climate and state policies play a significant role in shaping the advantages and challenges of solar viability.
Our goal is to present the most common pros and cons and let you make your own choice.
In Kentucky, the decision to switch to solar energy for homeowners is nuanced, particularly due to the state's traditionally lower electricity rates.
Lower rates can make the upfront investment in solar less appealing. Savings on utility bills might not be as substantial as in states with higher electricity rates. This factor is crucial in calculating the return on investment for this type of investment. Consequently, homeowners might find longer payback periods compared to states where electricity costs are higher.
However, it's important to consider that investing in solar is not just about immediate payback. Solar energy offers long-term benefits, such as increased energy independence, reduced carbon footprint, and potential property value enhancement.
Moreover, the Federal Solar Tax Credit and other incentives may soften the initial cost burn. For Kentuckians, the decision to go solar should be based on a holistic view that includes current electricity rates, personal environmental values, long-term financial planning, and energy independence goals. Each homeowner's situation is unique, and factors like location, home energy usage, and financial capacity play a significant role in determining whether solar is a worthwhile investment.
If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.
There are several ways you can purchase and/or finance your solar panel installation in Kentucky. Your goals and financial situation will dictate which option is best for you.
The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.
The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.
This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."
Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.
Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.
Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:
Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.
A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.
For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.
Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.
Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.
Each state is different when it comes to incentives, besides the 30% Federal Solar Tax Credit. Some are available throughout the state, while others are specific to certain areas. Your local city, utility company, or other organizations in Kentucky could offer additional incentives, potentially saving you hundreds or even thousands of dollars when you install a solar system.
This table shows the available incentives in New Hampshire. But, just because you don't see it here doesn't mean it doesn't exist. Check with your local utility for other potential incentives.
| Name | State | Category | Type |
|---|---|---|---|
| Kentucky Solar Easements Laws | KY | Regulatory Policy | Solar/Wind Access Policy |
| TVA - Green Power Providers | KY | Financial Incentive | Performance-Based Incentive |
| Biomass Energy Grants | KY | Financial Incentive | Grant Program |
| Net Metering Pilot Program - LG&E | KY | Regulatory Policy | Net Metering |
| Net Metering Pilot Program - Kentucky Utilities (KU) | KY | Regulatory Policy | Net Metering |
| Net Metering Pilot Program - ULH&P | KY | Regulatory Policy | Net Metering |
| Net Metering Pilot Program - Berea College Utilities | KY | Regulatory Policy | Net Metering |
| Interconnection Standards | KY | Regulatory Policy | Interconnection |
| Net Metering | KY | Regulatory Policy | Net Metering |
| Mountain Association for Community Economic Development - Solar Water Heater Loan Program | KY | Financial Incentive | Loan Program |
There are hundreds of solar companies in Kentucky. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.
To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.
The solar companies we partner with:
We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.
Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.
Rivian, an electric vehicle manufacturer based in California, has recently made a significant move in the renewable energy sector by signing a contract to purchase 100 megawatts of solar energy.
This deal is part of Rivian's broader commitment to achieve net-zero carbon emissions by 2040. The project is estimated to cost around $1 billion and is particularly noteworthy for its location. It will be built on a former coal mine in rural Kentucky, marking a shift from fossil fuels to renewable energy in the region.
The solar project, known as the Starfire Renewable Energy Center, is set to be the largest of its kind in Kentucky. It will eventually contribute 810 megawatts to the local grid, enough to power 170,000 households annually. This initiative is not just about adding renewable energy to the grid, it also aligns with Rivian's goal to provide clean energy for charging its electric vehicles. The company has previously invested in other renewable projects, including a solar plant in Tennessee and a wind farm in Illinois.
We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.
Now using the same one-of-kind technology and platform we are helping consumers in Kentucky decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.
We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.
The cost of solar panel installation in Kentucky can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.
A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in Kentucky is $16,860 for a 6kW system or about or about $2.81 per watt.
The number of solar panels you would need depends on a variety of factors such as:
To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.
The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.
Your installer should be able to give you an estimated timeline based on your specific project.
Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly and to clean off any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.
Some homeowner's insurance policies will cover solar panels, but it's best to double-check. You may need to add a separate rider or even choose a different insurance provider to ensure your investment is protected.
The inverter, which converts the direct current (DC) from the panels into alternating current (AC) for your home, typically has a shorter lifespan than the panels. You might need to replace it once during the lifetime of your solar system. Factor this into your long-term cost calculations.
Considering batteries alongside your solar system is a smart move. Batteries store excess solar energy, ensuring power availability during outages or when the sun isn't shining. This enhances energy independence and maximizes your solar investment. In areas with variable weather or high electricity rates, batteries can significantly boost savings and provide peace of mind. It's an investment in reliability and efficiency, making your solar system more versatile and effective.
