Kentucky experiences a diverse climate with approximately 200 sunny days annually, traditionally Kentucky known for its coal production, is gradually embracing the benefits of solar energy. With the cost of electricity rising, many Kentucky residents are turning to solar power as a means to take control of their energy bills and contribute to a cleaner environment. The state offers several incentives to make solar energy systems more financially accessible.
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Federal Solar Investment Tax Credit (ITC)
The Federal Solar Investment Tax Credit (ITC) is a nationwide incentive that significantly reduces the cost of solar systems. Kentucky residents can take advantage of this tax credit, which amounts to 30% of the total system cost, including installation. On average, Kentucky residents benefit from an ITC of $7,722.
Net Metering in Kentucky
Net metering is a policy that allows homeowners to receive credit for excess energy produced by their solar panels. In Kentucky, all energy providers are required to offer net metering, enabling homeowners to use the credits to offset future electric bills.
State-Specific Solar Incentives
While Kentucky does not offer a sales tax exemption or property tax exemption for solar energy systems, there are other incentives available:
- Cumberland Valley Electric: Offers rebates ranging from $50 to $1,370 for energy-efficient home upgrades.
- Taylor County RECC: Provides varying rebates for residential energy-efficiency measures and new construction incentives.
Property Assessed Clean Energy (PACE) Program
The PACE financing program in Kentucky provides access to financing for energy-efficient power systems and upgrades. This program helps homeowners finance solar panel installations through a voluntary assessment on their property tax bill.
Kentucky’s solar incentives, particularly the Federal Solar Tax Credit and net metering policies, make solar energy systems a more attractive and affordable option for homeowners. While the state may not offer as many incentives as others, these programs still provide significant financial benefits to those looking to invest in solar energy.
Further information and programs can be found at the Programs.Dsireusa.org
