Solar Panels Cost 14k-24k in Kentucky | January, 2025

Solar Panels Cost $14k-$24k in Kentucky | January, 2025

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How much do solar panels cost in Kentucky in 2025?

You will spend around $3.46 per watt in January, 2025 in Kentucky to go solar.

Utilizing this rate per watt, we can come to the conclusion that for every 1000 watts (1 kW) of solar power capacity will cost you $3,460 for installation. After receiving the 30% federal tax credit, you can expect to pay around $12,110, in Kentucky, for a 5 kW solar panel install. However, please keep in mind that a more extensive system could be needed to satisfy your energy requirements.

By selecting your county on the left, you can find out the average roof size and the average maximum capacity for residential solar panel systems in your area. The following analysis, below, highlights the costs, payback period, and 20-year average savings for a 5 kW system in your county.

Average out-of-pocket cost for a 5 kW system The upfront amount spent to buy and install solar.
Kentucky: $12,110US Average: $12,523
Average Payback Period The number of years until you break even on the solar investment.
Kentucky: 7 yearsUS Average: 7 years
Average Net 20-year savings The total amount of money saved over 20 years minus the out-of-pocket cost.
Kentucky: $15,844US Average: $16,265

Solar Potential in Kentucky

Estimated system size and solar electricity production per median viable roof in
Kentucky.

Roof size 804sq. ft.
Capacity 11.25kW DC
Electricity 13.3kkWh AC per yr.

Electricity Costs in Kentucky & What that Means for Your Solar Panel Pricing

Kentucky energy consumers generally use 1,084 kWh monthly, with an average monthly bill of $138.1. Smaller homes, such as micro-apartments, are also included in the data mentioned in the prior sentence.

For January 2025, Kentucky's average electricity rate is 12.73¢ per kWh.

The typical energy user in Kentucky needs 10 kW or higher solar setup to account for their full energy requirements. You'll spend $24,220 on 10 kW setup after including the 30% federal income tax credit in your calculations.

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Average solar panel costs by system size in Kentucky

To your left, we've provided a comprehensive price breakdown for the different solar panel system sizes set up in Kentucky. Larger solar installations have a higher price, yet they also offer higher electricity savings and larger income tax credits.

See a cost benefit analysis in the solar panel cost calculator to the right and below, for an average electric bill of $138.1 in Kentucky. Easily replace the $138.1 with your average electricity bill amount to see more accurate results.

System Size 6kW
Roof Size Min. space required
429 ft²
Electricity Value Annual Production $1,075 a year
Est. Price
$14,532
Savings from a 6kWthis system
  • Est. yearly production 8,440 kWh
  • Est. monthly savings $90
  • Full payback in 9 years
Environmental Impacts
  • Reduces CO2 emissions by 7.9 tons a year
  • Equivalent to planting 363 trees a year
  • Equivalent to driving 19,562 mi less a year
System Size 7kW
Roof Size Min. space required
501 ft²
Electricity Value Annual Production $1,254 a year
Est. Price
$16,954
Savings from a 7kWthis system
  • Est. yearly production 9,847 kWh
  • Est. monthly savings $104
  • Full payback in 10 years
Environmental Impacts
  • Reduces CO2 emissions by 9.22 tons a year
  • Equivalent to planting 423 trees a year
  • Equivalent to driving 22,822 mi less a year
System Size 8kW
Roof Size Min. space required
572 ft²
Electricity Value Annual Production $1,433 a year
Est. Price
$19,376
Savings from a 8kWthis system
  • Est. yearly production 11,253 kWh
  • Est. monthly savings $119
  • Full payback in 12 years
Environmental Impacts
  • Reduces CO2 emissions by 10.54 tons a year
  • Equivalent to planting 484 trees a year
  • Equivalent to driving 26,082 mi less a year
System Size 9kW
Roof Size Min. space required
644 ft²
Electricity Value Annual Production $1,612 a year
Est. Price
$21,798
Savings from a 9kWthis system
  • Est. yearly production 12,660 kWh
  • Est. monthly savings $134
  • Full payback in 13 years
Environmental Impacts
  • Reduces CO2 emissions by 11.85 tons a year
  • Equivalent to planting 544 trees a year
  • Equivalent to driving 29,343 mi less a year
System Size 10kW
Roof Size Min. space required
715 ft²
Electricity Value Annual Production $1,791 a year
Est. Price
$24,220
Savings from a 10kWthis system
  • Est. yearly production 14,066 kWh
  • Est. monthly savings $138
  • Full payback in 15 years
Environmental Impacts
  • Reduces CO2 emissions by 12.18 tons a year
  • Equivalent to planting 559 trees a year
  • Equivalent to driving 30,140 mi less a year

Kentucky Solar Panel Installation Incentives & Rebates | 2025

The REAP Grant can potentially cover between 80% and 100% of the installation costs for photovoltaic or wind turbines for rural small businesses and agricultural businesses. If you feel you might be eligible, try our REAP Grant eligibility tool to confirm your qualification.

Adding residential solar panels comes with a 30% federal tax credit, offered to nearly all homeowners, making it a smart option for many areas throughout the United States. State and local governments offer various programs to further encourage the switch to solar energy.

Residents of Kentucky can access 6 solar rebate and incentive programs from a number of utilities and governmental organizations.

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?

For homeowners in Kentucky planning to stay beyond the payback period of their solar system, solar panels are the best choice. A 5 kW solar system in Kentucky might save you an average of $21,034.35 over 20 years, with the break even point generally being 7 years.

The cost of not having solar panels in Kentucky

Without solar panels or another backup power source, you lose out on the earlier mentioned savings and are entirely dependent on your electric utility for electricity. As we have seen in many recent news reports, complete reliance on your utility is not always ideal.

Over the past few years, the utilities in Kentucky have had about 1.51 outages per customer each year. On average, the length of an outage is 202.98 minutes. Major events like wildlife damage, grid management errors or high winds can cause these durations to rise considerably.

View the info below to see the number of current electricity customers without power in Kentucky.

Whether or not a backup battery is present, a solar panel system could help ease the impact of future power outages you might face.

Power Outages

Currently, 0 customers are being tracked in Kentucky.

Learn more

Customers Out:

0

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What impacts the cost of solar panels in Kentucky?

Your Energy Needs -Larger solar panel setups come with a higher price tag, yet the cost per watt lowers as the size of the system expands. For most individuals, installing a system that can generate enough power to fully offset their entire electric bill is beneficial, providing significant savings.

Make & Model - Solar panels, just like many other products, come in different makes and models. The preferences for brand that your contractor has may make it vital to select a reputable installer. Choosing higher quality materials typically ensures a more satisfying long-term experience for the buyer.

Solar Panel Type - The standard in the industry is now monocrystalline panels, and justifiably so. Despite the higher price tag, these panels generate greater energy output. Many installation experts use panels constructed from this material.

Your Property - Every home and property is unique. Uneven land, trees, or v can increase the complexity of the installation. By using satellite images, many solar installers these days can evaluate your home and incorporate these considerations into the preliminary cost estimate.

Labor Rates - Employees get varied wages from different companies, and these costs are passed on to the consumers. Businesses paying more to their employees frequently receive higher reviews for their work and customer service.

Permitting & Interconnection - The final price of your installation will be impacted by local permitting and utility interconnection fees, which differ by location. That said, experienced local installers will be able to build these numbers into your initial quotes so there are no surprises.

See what solar panels cost in other KY cities

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Who are the best solar installers in Kentucky?

YellowLite

Cleveland, OH(216) 333-1364

Services

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

Academy Energy Group

Newburgh, IN(812) 518-2150

Services

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

Core Development Group

(201) 825-2195

Services

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

Solgen Power

Pasco, WA(855) 709-1181

Services

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

Solar Alliance Southeast

Knoxville, TN(865) 309-4674

Services

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

Appalachian Renewable Power Systems

Stewart CDP, OH(740) 498-0498

Services

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

Craftsman Electric

Cincinnati, OH(513) 891-4426

Services

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

Power Home Solar

Mooresville, NC(704) 870-3670

Services

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

Dividend Finance

Cincinnati, OH(415) 805-7000

Services

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

Pure Power Solar

Louisville, KY(502) 650-0353

Services

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

Silver Sun Solar

Deltona, FL(407) 832-42452

Services

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

Green Rack Contracting

Pittsburgh, PA(412) 822-9947

Services

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

Harvest Solar

Jackson, MI(888) 907-6527

Services

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

Entegrity

Little Rock, AR(800) 700-1414

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Auditing of energy requirements for independent energy generation.
  • Monitoring of independent energy generation.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

City Electric Supply

Dallas, TX(866) 634-9853

Services

  • Installation of solar arrays.
  • Auditing of energy requirements for independent energy generation.
  • Monitoring of independent energy generation.
  • Expertise in consulting on advantageous financing for solar.

Empire Solar Group

Salt Lake City, UT(800) 467-4562

Services

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

Icon Solar

Milford, OH(513) 396-7777

Services

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

Kentucky Solar Panel Cost FAQs

  • The average solar panel cost in Kentucky as of January, 2025 is estimated at $3.46/W. Post federal tax credit, a 5 kW solar panel system installation in Kentucky will roughly cost $12,110.

  • Various utility providers and government organizations in Kentucky are offering 6 rebates and incentives at this time. Also, nearly everyone can take advantage of the 30% federal tax credit.

  • Even though paying cash provides the most savings, there are now multiple financing options for solar panels that also are cost-effective. Installers often have partnerships with financing companies and will include this information in your initial quotes.

  • Yes, solar panels systems of 5 kW in Kentucky typically have a payback period of 7years, with expected savings on electricity costs of $21,034.35 over 20 years.

  • Kentucky residents aren't paid for installing solar panels through a state program, however, they, like all U.S. residents, can benefit from the 30% federal tax credit.

  • In Kentucky, there are no free solar panel programs yet, but the 30% federal income tax credit, which most US citizens can access, greatly reduces the cost of installing solar panels.
Matt Hope
Last Reviewed By: Matt Hope
Published: 2024-12-08