Solar Panels Cost 14k-24k in Lexington-Fayette urban county, KY | October, 2024

Solar Panels Cost $14k-$24k in Lexington-Fayette urban county, KY | October, 2024

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How much do solar panels cost in Lexington-Fayette urban county, KY in 2024?

Solar panel installations in Lexington-Fayette urban county, KY during October, 2024 average out to $3.51 per watt.

Utilizing the price per watt, you are able to conclude that for every 1 kW (1000 watts) of solar power capacity will require an investment of $3,510 for installation. In Lexington-Fayette urban county, the cost of a 5 kW solar panel system is typically $12,285, after a 30% federal tax credit. Depending on your energy usage, you might need a bigger system.

To the left, you can select a county to find the average roof size and the average maximum generation capacity for solar panel systems on homes in your area. Below, you can see a summary of the costs, payback period and 20 year average savings for a 5 kW system installed in your county.

Average out-of-pocket cost for a 5 kW system The upfront amount spent to buy and install solar.
Lexington-Fayette urban county: $12,285US Average: $12,562
Average Payback Period The number of years until you break even on the solar investment.
Lexington-Fayette urban county: 8 yearsUS Average: 7 years
Average Net 20-year savings The total amount of money saved over 20 years minus the out-of-pocket cost.
Lexington-Fayette urban county: $13,984US Average: $15,784

Solar Potential in Lexington-Fayette urban county

Estimated system size and solar electricity production per median viable roof in
Lexington-Fayette urban county.

Roof size 751sq. ft.
Capacity 10.5kW DC
Electricity 12.2kkWh AC per yr.

Electricity Costs in Lexington-Fayette urban county, KY & What that Means for Your Solar Panel Pricing

On average, a Lexington-Fayette urban county energy consumer uses1,103 kWh and pays $131.39 per month for electricity. These figures also cover apartments and other smaller residences with lower energy demand.

For October 2024, Lexington-Fayette urban county, KY's average electricity rate amounts to 11.92¢ per kWh.

If you consume an average amount of electricity in Lexington-Fayette urban county, you will need a solar panel system of 10 kW or more to fully account for your full electricity consumption demands. Presently, a 10 kW solar system will be priced at around $35,100at first, but thanks to the 30% federal tax credit, you receive 30% back, reducing the total to $24,570.

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Average solar panel costs by system size in Lexington-Fayette urban county

On your left, we have provided a full pricing details for the multiple solar panel system sizes installed in Lexington-Fayette urban county. The investment for a more extensive solar panel setup is greater, but it also yields greater electricity savings and higher income tax credits.

The solar panel cost and benefit breakdown, shown in the calculator down and to the right, is based on an average electric bill of $131.39 in Lexington-Fayette urban county. Change the $131.39 to your usual bill payment for personalized results.

System Size 6kW
Roof Size Min. space required
429 ft²
Electricity Value Annual Production $1,050 a year
Est. Price
$14,742
Savings from a 6kWthis system
  • Est. yearly production 8,752 kWh
  • Est. monthly savings $88
  • Full payback in 9 years
Environmental Impacts
  • Reduces CO2 emissions by 8.36 tons a year
  • Equivalent to planting 384 trees a year
  • Equivalent to driving 20,698 mi less a year
System Size 7kW
Roof Size Min. space required
501 ft²
Electricity Value Annual Production $1,225 a year
Est. Price
$17,199
Savings from a 7kWthis system
  • Est. yearly production 10,211 kWh
  • Est. monthly savings $102
  • Full payback in 11 years
Environmental Impacts
  • Reduces CO2 emissions by 9.76 tons a year
  • Equivalent to planting 448 trees a year
  • Equivalent to driving 24,147 mi less a year
System Size 8kW
Roof Size Min. space required
572 ft²
Electricity Value Annual Production $1,400 a year
Est. Price
$19,656
Savings from a 8kWthis system
  • Est. yearly production 11,669 kWh
  • Est. monthly savings $117
  • Full payback in 12 years
Environmental Impacts
  • Reduces CO2 emissions by 11.15 tons a year
  • Equivalent to planting 512 trees a year
  • Equivalent to driving 27,597 mi less a year
System Size 9kW
Roof Size Min. space required
644 ft²
Electricity Value Annual Production $1,575 a year
Est. Price
$22,113
Savings from a 9kWthis system
  • Est. yearly production 13,128 kWh
  • Est. monthly savings $131
  • Full payback in 14 years
Environmental Impacts
  • Reduces CO2 emissions by 12.52 tons a year
  • Equivalent to planting 575 trees a year
  • Equivalent to driving 30,981 mi less a year
System Size 10kW
Roof Size Min. space required
715 ft²
Electricity Value Annual Production $1,750 a year
Est. Price
$24,570
Savings from a 10kWthis system
  • Est. yearly production 14,586 kWh
  • Est. monthly savings $131
  • Full payback in 16 years
Environmental Impacts
  • Reduces CO2 emissions by 12.52 tons a year
  • Equivalent to planting 575 trees a year
  • Equivalent to driving 30,981 mi less a year

Lexington-Fayette urban county Solar Panel Installation Incentives & Rebates | 2024

For rural agricultural properties and small businesses, the REAP Grant might currently cover between 80% and 100% of the expenses for installing photovoltaic or wind energy systems. Think you fit this category? Check your qualification with our REAP Grant eligibility tool.

Most homeowners can benefit from the federal 30% income tax credit for solar panels, which turns adopting solar energy a practical choice in numerous regions of the U.S. In addition to federal incentives, there are many state and local efforts to encourage solar energy adoption.

Multiple utilities and government agencies in Kentucky provide 6 solar rebate and incentive programs.

Tax Exemption for Large-Scale Renewable Energy Projects

Value:Varies

Beginning in 2007, companies operating in Kentucky may be entitled to corporate sales or income tax exemptions on new energy efficiency or renewable energy investments. A complete sales tax exemption may apply to any materials or equipment a company uses to make improvements. Certain employees whose jobs were created as part of the improvements may write off a 4% wage assessment on their own income taxes. A minimum investment of $1 million is required. New solar facilities should be rated for at least 50 KW, while systems using other renewable technology should be rated for at least 1 MW. Additional information is available from the Think Kentucky website.

On-Farm Energy Efficiency Grant Program

Value:Varies

The Office of Agricultural Policy, a unit of the office of the Kentucky governor, oversees the County Agricultural Investment Program (CAIP). Farmers may be eligible for program grants to fund energy efficiency improvements. Eligible projects for grant funding include new implements, insulation/weatherization, lighting, HVAC, windows, roofing, and smart thermostats. New solar thermal/PV systems and wind turbines may also be eligible. Equipment and building materials must meet certain state efficiency standards. Interested farmers may apply at any time and will be considered for the upcoming program year. Additional information is available from the OAP website.

Net Metering

Value:Varies

Kentucky requires private electrical utilities in the Commonwealth to collect renewable energy credits through net metering arrangements with their customers. Any solar, wind, biomass, or other renewable energy system rated for under 45 kW should have a bidirectional meter equipped to measure net excess generation (NEG) sent back to the grid. Customers will be compensated at a rate set by the state utility regulator. As of 2021, the rate per kilowatt hour is 9.746 cents. Systems entering a net metering contract must comply with certain IEEE and UL standards. Utilities reserve the right to restrict NEG exports to keep the grid stable. Additional information is available from the Kentucky Public Service Commission website.

Incentives for Energy Independence

Value:Varies

Various tax incentives are available in Kentucky to encourage renewable adoption research and adoption in the Commonwealth. New renewable generation farms, such as those using solar, wind, or biomass technology, may be totally exempt from state income tax, entity tax, and sales/use tax. Employees maintaining the systems may be entitled to tax credits equal to a 4% wage assessment on employers. Exemptions or special assessments are determined on a case-by-case basis and will last for up to 25 years. Certain administrative fees payable to the Kentucky Economic Development Finance Authority may apply. Additional information is available from the Think Kentucky website.

Energy Efficiency Loans for State Government Agencies

Value:Varies

The Green Bank of Kentucky (GBKY) received seed funding from the 2009 federal stimulus package. Currently, the Bank offers revolving loans to commonwealth government agencies for sustainability projects. Agencies may select from three different loan options. In each case, repaid principal will immediately "revolve" to support subsequent borrowers. SELF loans may fund any energy efficiency improvements or renewable energy investments that will reduce consumption by 20%. Available principal ranges from $50K to a maximum of $225K. Hybrid loans offer principal from $50K to $600K. These loans require energy audits before project work begins, the cost of which may be covered by loan funds. Agencies have the burden of procuring contractors and new equipment/materials. ESPC loans are designed for comprehensive or large-scale industrial improvements. Loan principal starts at $600K with no maximum. The applicant must use a recognized Energy Service Company or Energy Savings Performance Company for the work. Additional information is available from the GBKY website.

Interconnection Standards

Value:Varies

Distributed generation and interconnection have been standardized by the Kentucky Public Service Commission since 2009. Each energy system connected to the commonwealth grid will be assigned to a numerical "level" based on rated capacity. Systems at each level must follow recognized standards such as those set by IEEE or UL. Interconnection fees and application review turnaround will depend on the system's level. Customers must carry at least minimum liability insurance coverage on their energy system, and they may be required to install disconnect switches or other safety features by their utility. However, they will own any renewable energy credits they generate and may sell them to the utility at their discretion.

Are solar panels worth it in Kentucky?

If you intend to own your residence longer than the solar system's payback period, solar panels are a smart investment in Lexington-Fayette urban county. A 5 kW system in Lexington-Fayette urban county, KY will save you, on average, $19,248.6 over a 20 period and the average break even point is 8 years.

The cost of not having solar panels in Lexington-Fayette urban county, KY

Apart from the savings mentioned earlier, failing to install solar panels or an alternative energy backup leads to you being wholly dependent on your electric utility for electricity. Recent news examples have shown that complete dependence on your utility provider isn't always the most favorable condition.

The average number of outages per customer per year in Lexington-Fayette urban county is 1.38. The average duration of each outage is 164.39 minutes. During severe events like tornadoes, construction accidents, or grid management errors, these times can grow significantly longer.

A solar energy system could help mitigate the effects of future outages, whether or not it has a backup battery.

Power Outages

Currently, 0 customers are being tracked in Fayette County.

Learn more

Customers Out:

0

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What impacts the cost of solar panels in Lexington-Fayette urban county, KY?

Your Energy Needs - Larger solar panel systems have a greater upfront cost, but the cost per watt reduces. Installing a solar panel system that can cover the electric bill is useful to consumers because of the reduced long-term costs.

Make & Model - Just like other products, solar panels come in a wide variety of makes and models. Because the installer you choose might have particular system preferences, choosing a recommended installer is even more important. The employment of superior makes and models is likely to provide a more satisfactory long-term experience for buyers.

Solar Panel Type - Monocrystalline panels have become the standard in the industry, and it's easy to see why. Despite the higher price tag, these panels produce greater energy output. The majority of installation experts use panels made from this material.

Your Property - Things such as trees, rough terrain, or additional hurdles can cause the installation to be more difficult. Many solar installers today use satellite imagery to evaluate your home and factor in these factors into the preliminary cost estimate.

Labor Rates - The wage differences between companies lead to costs that are transferred to the consumers. Companies that pay higher wages often garner higher reviews for their work and customer service.

Permitting & Interconnection - The cost of installation will differ depending on local permitting and utility interconnection fees. Quality local installers will include these figures in your preliminary estimates to provide transparency.

See what solar panels cost in other KY cities

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Who are the best solar installers in Lexington-Fayette urban county?

YellowLite

Cleveland, OH(877) 743-8757

Services

  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.
  • Reparation of solar arrays.

Academy Energy Group

Newburgh, IN(812) 518-2150

Services

  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Auditing of energy requirements for independent energy generation.

SunWind Power Systems

(502) 276-5954

Services

  • Auditing of energy requirements for independent energy generation.
  • Installation of batteries for energy storage.
  • Reparation of solar arrays.
  • Installation of solar arrays.

Solgen Power

Pasco, WA(855) 220-0778

Services

  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.
  • Solar systems for selling electricity back to the grid.

Appalachian Renewable Power Systems

Stewart CDP, OH(740) 277-8498

Services

  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Installation of batteries for energy storage.
  • Reparation of solar arrays.
  • Installation of solar arrays.

Power Home Solar

Mooresville, NC(704) 870-3670

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Consulting on all things solar related.
  • Expertise in consulting on advantageous financing for solar.
  • Solar systems for selling electricity back to the grid.

Dividend Finance

San Francisco, CA(415) 805-7000

Services

  • Installation of batteries for energy storage.
  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.

SunPower Corporation

San Jose, CA(800) 786-7693

Services

  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Consulting on all things solar related.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.

Silver Sun Solar

Deltona, FL(340) 227-7785

Services

  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.
  • Installation of batteries for energy storage.

Harvest Solar

Jackson, MI(888) 907-6527

Services

  • Installation of solar arrays.
  • Consulting on all things solar related.
  • Expertise in consulting on advantageous financing for solar.

Entegrity

Little Rock, AR(800) 700-1414

Services

  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.

City Electric Supply

Dallas, TX(866) 634-9853

Services

  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.
  • Installation of solar arrays.

PowerHome Solar

Mooresville, NC(704) 870-3670

Services

  • Installation of solar arrays.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.
  • Installation of batteries for energy storage.

Empire Solar Group

Salt Lake City, UT(800) 467-4562

Services

  • Solar systems for selling electricity back to the grid.
  • Installation of batteries for energy storage.
  • Installation of solar arrays.

Icon Solar

Milford, OH(513) 396-7777

Services

  • Solar systems for selling electricity back to the grid.
  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.
  • Installation of batteries for energy storage.
  • Consulting on all things solar related.

Lexington-Fayette urban county, KY Solar Panel Cost FAQs

  • As of October, 2024, the typical cost for solar panels in Lexington-Fayette urban county, KY is $3.51/W. For a 5 kW solar panel system, the total cost in Lexington-Fayette urban county, KY after federal tax credits is around $12,285.

  • Right now, Kentucky has 6 rebates and incentives available through a variety of utility companies and government entities. Also, nearly everyone can take advantage of the 30% federal tax credit.

  • Opting to pay in cash provides the highest savings, but there are now various financing options for solar panels that are cost-effective. Installers typically partner with financing companies and will incorporate this information into your initial quotes.

  • Yes, in Lexington-Fayette urban county, KY, the average time for 5 kW solar panel systems to pay for themselves is 8 years, leading to electricity savings of $19,248.6 over a 20-year period.
Matt Hope
Last Reviewed By: Matt Hope
Published: 2024-10-01