A publication of Appalachian Voices


A publication of Appalachian Voices

Energy Report

Kentucky Residential Solar Costs Expected to Rise

Starting in 2020, a law changing solar energy costs in Kentucky will take effect. Currently, Kentucky residents with solar panels can feed their extra energy back into the grid, receiving full compensation from utility companies for the amount they produce. The process, called “net metering,” is supplemented by a 30 percent federal tax credit for the system’s cost, making solar energy a financially feasible choice for many.

S.B. 100, which became law in March, will reduce the residential tax credit to 26 percent next year, eliminating it entirely by 2022 for residential customers. The law also tasked the Kentucky Public Service Commission with setting new home solar compensation rates for each utility. The changes are expected to increase the cost of residential solar energy.

The commission is accepting written comments until Oct. 15 and scheduled a 9 a.m. public hearing on Nov. 13 at the PSC offices in Frankfort. The commission will have to approve utilities’ new net metering rates in 2020. — By Rachael Kelley