I want to start our conversation by congratulating you for considering solar panels! As a long-time Kentucky resident, I love seeing more folks discover solar energy‘s benefits right here in our state. You‘ve come to the right place to make an informed decision.
An Overview of Solar Power in Kentucky
Solar adoption has grown over 10-fold in Kentucky since 2010. By the end of 2022, we had around 100 megawatts of solar installed statewide [1]. That‘s enough to power over 12,500 homes!
And last year saw our biggest solar expansion yet, with 86 more megawatts connected to the grid [2]. Companies and homeowners alike are gradually realizing solar energy‘s reliability and value.
So while that‘s great progress, I know what you’re thinking…Kentucky still lags way behind sunnier states out west and north in the solar race.
And that used to be true! But let me tell you a secret…Germany has pretty much the exact same amount of sun as we do in Kentucky [3]. Yet Germany has over 50 GIGAWATTS of solar power. That‘s 500 times what little old Kentucky has!
My point is this – we absolutely have more than enough sunlight here to power our homes and businesses with solar energy. And I‘ll prove why solar panels can save you thousands in utility bills in the coming years!
What Do Solar Panels Cost in Kentucky?
Okay, let‘s dive into the key info I know you’re looking for. As of 2021, typical pricing for installed solar panels averages $2.34 per Watt across Kentucky.
That‘s about 15% below the national average! And it makes the total cost for a common 6 kilowatt residential solar system about $14,000 before any incentives or tax credits. I‘ll break down incentives later.
First, I want to show you how solar panel pricing changes for different system sizes:
| System Size | Total Price |
|---|---|
| 4 kilowatts | $9,360 |
| 6 kilowatts | $14,040 |
| 8 kilowatts | $18,720 |
Since you‘ll offset hundreds from your current monthly electricity bill, a 6 kW system makes sense for most Kentucky homes.
And here‘s some more good news – residential solar prices have dropped nearly 40% over the last 5 years! So going solar today locks in even more future savings.
How Quickly Do Solar Panels Pay For Themselves?
Alright, this is the golden question I get all the time!
Given our excellent sun levels in Kentucky and rapidly declining solar equipment prices, you can recoup your entire investment in a home solar system within 8-11 years. Keeping savings going for another 15+ years after that!
For example, offsetting the average $126 monthly utility bill with solar would payback a 6 kW system in about 9 years. Then you‘d pocket $30,000 extra over the rest of the system‘s 25 year lifespan. Making your friends mighty jealous!
Now, the exact payback timing varies a bit depending which part of Kentucky you live in…
Southwest counties like Lyon and Trigg with the most sun have quicker 7-9 year payback. While folks up in the hills of Pike or Letcher may need 10-12 years to break even.
Either way – doubling your money in a decade ain‘t bad!
What else affects payback speed besides sunlight? Your utility electricity rate plays a role too…
Electricity Cost Differences Across Kentucky
Electric prices swing nearly 30% across counties in Kentucky. Rates in the west can be 50% higher than the east!
Here‘s a map showing the latest utility pricing by region:
As you see, folks in the Louisville, Lexington, Bowling Green and Owensboro pay 11-13 cents per kWh. Out east though in rural counties it may cost just 8-9 cents for the same power.
So if I lived in McCracken out west, I‘d get a faster 6 year payback from solar. My buddies in Boyd or Carter county would need 8-9 years with their cheaper grid rates.
Either way, we‘ll both laugh later as our electric bills drop and utility prices keep rising 3% annually!
What Equipment Works Best For Solar in Kentucky?
Alright, enough maps and numbers. Time to look at the solar panels themselves!
You basically have two options – polycrystalline silicon panels or more efficient (and pricier) monocrystalline.
With Kentucky getting a solid 4-5 peak sunlight hours per day on average, polycrystalline make great economic sense. Their cheaper price means faster payback, even if squeezing out a little less power overall.
If you live way out east getting under 4 daily sun hours, spring for monocrystalline panels rated 18-20% efficiency. Their higher output is needed to hit payback goals.
Outside of the panels, having a sturdy roof mount, neagtive grounding, and quality wiring vastly extends system health. Don‘t cut corners here!
For folks using lots of household electricity, adding battery storage lets you tap solar energy around the clock. Though batteries do add quite a bit to the system cost.
I recommend holding off on storage at first as panel and battery technology keeps advancing. Prices will fall rapidly in the coming years.
Who Are the Best Solar Installers Near Me?
I‘m so glad you asked about this critical piece! Having quality installation from a reputable local company ensures your system performs reliably for decades.
After nearly 20 years guiding Kentucky folks towards solar, I can point you to the cream of the crop.
Solar Energy Solutions, headquartered right in Lexington, is my recommendation. Their level of expertise and workmanship is second-to-none regionally. Top notch equipment and realistic production guarantees as well. Can‘t recommend them highly enough!
Another rapidly growing installer I‘ve heard great feedback on is SunPro Solar out of Florida. They expanded to Kentucky in 2020 and have an A+ Better Business Bureau rating plus thousands of happy customers. Worth checking out.
There are absolutely more solar companies to choose from, but stick to outfits with 10, 15+ years experience in the field. Ask for multiple customer references to call as you evaluate installers. This is a relationship that will last decades!
Kentucky Solar Incentives 101
Now, Kentucky definitely doesn‘t offer as much renewable energy support as places like California or our neighbors Illinois. But buying solar panels does come with nice tax perks and rebates.
Here are the credits and incentives available for new solar installs:
- 26% Federal Solar Tax Credit through 2032
- Net metering – utilities credit excess solar homes feed to grid
- 100% exemption from state sales tax on equipment
- 100% exemption from property tax increases
Between Uncle Sam‘s tax credit, avoiding sales taxes, net metering credits, and property tax breaks…you‘ll save at least $3,500 off typical solar costs in Kentucky. Not bad!
Our utilities like LG&E offer small solar rebates as well, though only few hundred dollars. Better than nothing!
I do hope we can modernize state policies soon to give our residents better access to solar. But even without help on that front today, the sun itself powers major savings!
Home vs. Commercial Solar – What Provides Better Returns?
Folks wanting max savings often ask me whether residential or commercial solar systems make best financial sense. So what‘s the verdict?
For small retail stores, warehouses up to 10-15,000 square feet, offices, etc – home solar edged out commercial over 25 years. Electricity loads for most small/medium businesses resemble a typical household‘s usage. But homes receive tax breaks like the ITC.
Now once you reach truly large commercial scale above 25,000 kWh demand like factories, big box centers, universities – then solar ROI improves. Bulk purchasing solar equipment adds bigger savings. Large, unobstructed rooftops or ground area helps too.
Yet generally in Kentucky, residential solar offers the fastest payback thanks to Uncle Sam‘s tax help!
If you‘re curious about commercial options, I wrote a detailed piece covering that specifically. Give it a read!
Looking Ahead – Kentucky‘s Solar Energy Potential
In closing out this guide, I want to touch on the road ahead for solar power across Kentucky. Because I strongly believe the growth we‘ve seen is only scratching the surface.
Consider that just 1 out every 1000 Kentucky homes has solar panels right now. Contrast that with California where 1 in 4 homeowners embrace solar energy!
And even our modest 100 megawatts of total solar would power only 1% of all Kentucky households currently.
As the economic incentives continue surging in solar‘s favor, we should reach true mainstream adoption in the coming decade.
With federal tax credits now guaranteed through 2034, Kentucky could realistically multiply installed solar capacity 10 times over by 2030. Adding jobs, keeping energy dollars local, and proving out the reliability of renewable power.
I hope this intel gives you confidence that solar works just as well here as places known for abundant sun and aggressive clean energy pushes.
We may not make headlines, but Kentucky communities can choose to secure control over electricity costs one rooftop at a time. And that adds up to real movement towards energy independence and affordability!
Let me know if any other questions come up about your solar decision. I‘m always happy to help educate and offer two cents where I can.
Stay cool out there!
Jeremiah
(25-year Kentucky Solar Expert)
