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

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2 Comments

  1. molly on September 25, 2023 at 5:51 pm

    Hi Hector, There is no federal mandate for solar panels, nor do we expect to see a mandate. There is currently a 30% federal tax credit for home solar panels: https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics. Thanks for asking! – Molly Moore



  2. Hector Carrasquillo on September 24, 2023 at 12:26 pm

    Door to door sales rep said there is a or is going to be a federal mandate on solar panels… is this accurate?



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