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In recent years, the solar trend has been booming around the United States. The state of Kentucky, famous for its cultural heritage and beautiful landscapes, is also taking initiatives to promote clean and renewable energy. In terms of solar panel installation, its current ranking is 46, according to SEIA. However, recognizing the benefits of solar installation like low energy bills, grid independence, etc, the state is actively contributing to making solar transition affordable for homeowners and businesses by introducing the best solar incentives in Kentucky.
Solar Panels in Kentucky
Kentucky is among the top 5 coal producers in the United States. Though there are enough solar panels installed to power around 17,200 houses, the Solar Energy Industries Association (SEIA) reports that solar energy accounts for just 0.32% of the state’s total energy generation. It is anticipated that these figures will increase rapidly. According to the SEIA, during the next five years, Kentucky will add 3,331 megawatts (MW) of solar power.
Also, many Kentucky citizens are looking for ways to reduce their electricity bills and become more energy-independent due to rising electricity rates. Although installing solar panels on a home in Kentucky is expensive up front, there may be financial benefits to consider.
Let’s have a look at solar incentives in Kentucky to help homeowners and businesses reap all the benefits of installing solar panels in Kentucky by reducing the upfront cost and other expenses.
Solar Incentives in Kentucky for Homeowners
Kentucky offers several incentives to encourage homeowners to make solar energy investments. These incentives aim to reduce the upfront expenses associated with solar installation while increasing accessibility to the long-term advantages.
01. Federal Solar
Tax Credit
With a federal tax credit in Kentucky, you can offset up to 30% of the solar system’s cost. The recently approved Inflation Reduction Act increased and extended that credit until 2032. However, remember that the FTC is a solar tax credit rather than a cash-back incentive. You will receive a credit to your tax liability for the tax year in which you installed your system. You can take a partial credit and roll over the balance for a maximum of five years.
02. Net Metering in Kentucky
According to the Kentucky Bill 2008, the utilities provide net metering to consumers that generate power using photovoltaic (PV), wind, biomass, biogas, or hydroelectric systems up to 30 kW in capacity. Except for TVA utilities, it is accessible to all consumers of investor-owned utilities and rural electric cooperatives. For net metering in Kentucky, you require a bi-directional meter. The cost of installing meters or other equipment to monitor the power flow will be borne by the customer.
03. BlueGrass Energy Cash-Back Incentive
Commercial Solar Incentives in Kentucky
01. Solar Energy Tax Credit for Commercial Customers
Businesses in Kentucky can also take advantage of the Kentucky Solar Energy Tax Credit, just like homeowners can. With a $1,000 maximum credit, this credit can pay up to 30% of the installation expenses of commercial solar PV and solar water heating systems. Businesses can now more easily afford to invest in solar due to this financial relief, which frees up funds for other growth-oriented initiatives and lower operating expenses.
02. PACE Financing
Program
This financing initiative aims to increase the accessibility of renewable energy by minimizing down payments and keeping interest rates low. Additionally, it simplifies system payment by automatically adding the monthly fees to your property tax bill. PACE financing can be very advantageous as switching to solar in Kentucky. At this time, PACE financing is primarily offered to Kentucky’s business customers. Commercial solar clients can visit KYPACE.org to see if they qualify.
Kentucky Incentives for Energy Independence
The Kentucky Incentives for Energy Independence are a great way to lower the actual cost of solar arrays, but they are only available to commercial users. Under this program, qualifying businesses can receive the following benefits:
100% of the corporate income tax
100% of Limited Liability Entity Tax
4% of the gross wages of each employee
All tax credits combined may not exceed 50% of the capital investment in the project. If you want to go solar, Kentucky has several subsidies and incentives available for businesses and homeowners. The financial advantages of solar energy make it a good choice, from state exemptions and utility-specific programs to federal tax credits. Now is the best time for Kentuckians to invest in solar power, helping to create a sustainable future while also enjoying financial benefits, as the state continues to embrace renewable energy.
For homeowners and businesses, going solar in Kentucky is a good way to take control of the booming inflation and high energy costs. You can reach out to top solar contractors in Kentucky for top-notch solar installation services with flexible financing options. Get a FREE estimate of your solar savings in Kentucky!
Solar SME Installation Services in Kentucky
As you embark on your solar journey, consider Solar SME as your trusted solar partner in Kentucky. Together, we can contribute to a cleaner, greener future for Kentucky. Contact us today to explore the possibilities of solar energy for your home or business.
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Frequently Asked Questions
You should know how much energy your household uses on average each day before switching to solar power. You should also research the type of solar panels you will need, as high-efficiency solar panels will produce more energy each day, and you can store that energy in a home battery backup if necessary.
Efficiency, yield, warranty options, durability, and aesthetics (which may involve your Homeowners Association) are all important factors to take into account before investing in a solar panel system. We offer highest quality panels and accessories that are covered by performance, product, and workmanship warranty.
Efficiency, yield, warranty options, durability, and aesthetics (which may involve your Homeowners Association) are all important factors to take into account before investing in a solar panel system. We offer highest quality panels and accessories that are covered by performance, product, and workmanship warranty.
It’s essential that you consider your roof’s dimensions, shape, and slope. Although other roofs might work, south-facing roofs with a slope of 15 to 40 degrees are usually the ideal for solar panels. The age of your roof and when it will need to be replaced should also be taken into account.
It’s essential that you consider your roof’s dimensions, shape, and slope. Although other roofs might work, south-facing roofs with a slope of 15 to 40 degrees are usually the ideal for solar panels. The age of your roof and when it will need to be replaced should also be taken into account.
