Kentucky Solar Incentives (Rebates, Tax Credits & More in 2023)
By Dan Simms /
In this guide to Kentucky’s best solar companies, you’ll learn
Each product and or company featured here has been independently selected by the writer. You can learn more about our review methodology here. If you make a purchase using the links included, we may earn commission.
While renewable energy has been slow to grow in Kentucky, the number of residential solar installations has more than doubled between 2020 and 2021, keeping local solar companies fairly busy. But, why are so many homes going solar?1
For one, solar is much more affordable in Kentucky compared to other states. And because Kentucky households have higher electric bills than average, many homeowners are discovering it’s well worth it to install a solar system.2 A solar panel installation can save a Kentucky household upwards of $20,000 in energy savings after you pay off your panels. And with electricity rates on the rise, those savings are only expected to increase.
With over a dozen solar panel companies in Kentucky to choose from, how do you decide who to hire? The EcoWatch Reviews team has analyzed local solar contractors and determined that the best solar installers are:
Read on to learn more about why these top five companies are the highest rated solar installers in Kentucky.
Pros
Cons
SunPower has an outstanding product line and history in the solar industry. While it’s a major national installer, it serves all cities in Kentucky, from Huntington to Louisville to Paducah.
SunPower has historically only been a manufacturer, but it will soon begin handling installations of panels from its sister company, Maxeon, which are among the most efficient solar panels, making them a great option in Kentucky, where above-average rainfall necessitates maximum energy production.
SunPower provides an all-inclusive warranty that covers the panels, workmanship and performance, further setting this company apart from the competition. The panels are quite expensive, although the higher efficiency often pays for itself in the long run. Additionally, this company accepts cash purchases, solar loans, leases and power purchase agreements (PPAs) to make the products more accessible.
At the present moment, SunPower outsources installations of its products to third-party companies, which means customer service can be a bit spotty. However, SunPower’s installer network has to earn a certification from the company to carry out its installations; the process is rigorous. Most customer report excellent experiences.
Another downside to SunPower is its hefty price tag. But, you’re paying for the best panels on the market.
EcoWatch Rating |
---|
Better Business Bureau (BBB) Rating |
Year Founded |
Average Cost ($-$$$$$) |
Solar Services |
Brands of Solar Equipment Offered |
Warranty Coverage |
5 |
A+ |
1985 |
$$$$ |
Solar Panels, Solar Batteries, EV Chargers, System Monitoring |
SunPower Panels |
25-year all-inclusive warranty |
Regional Service
Average cost
Pros
Cons
Solar Energy Solutions is a local solar installer headquartered in Lexington that also serves Indiana, Ohio and Illinois.
This company has the excellent customer service you’d expect from a smaller solar installer. The techs provide constant communication throughout the entire design and installation process, and most customers are abundantly happy with the customer care provided.
Solar Energy Solutions completes an impressive range of clean energy services. It installs solar panels, solar roofing, solar batteries and electric vehicle chargers. It even does agricultural solar and energy efficiency audits.
Best of all for Kentucky homeowners, Solar Energy Solutions backs its many solar products, including some of the most popular home solar panel brands, with a warranty for parts, labor, equipment and performance.
The biggest downside to this company is its warranty only covers labor for three years, which is below the industry average. However, its 25-year power production guarantee ensures that your panels will consistently generate energy throughout your system’s lifespan. Solar Energy Solutions also has no accreditation with the Better Business Bureau (BBB).
EcoWatch Rating |
---|
Better Business Bureau (BBB) Rating |
Average Cost ($-$$$$$) |
Solar Services |
4.5 |
Not Rated |
$$$ |
Solar Panels, Solar Batteries, Solar Roof Shingles, EV Chargers, Energy-Efficiency Upgrades |
Pros
Cons
Blue Raven Solar is a bigger national company serving 17 states, but it still manages to provide outstanding customer service and constant communication throughout the solar conversion process. Due to its size, Blue Raven is able to buy equipment in bulk and offer its services at remarkably low prices.
Its BluePower+ financing option is one of the top solar loan programs available in Kentucky, offering no-money-down options — similar to leases — but with all the benefits of panel ownership. It doesn’t accept leases or power purchase agreements (PPAs). But, its financing options are better for most customers anyway.
Unfortunately, Blue Raven Solar only installs solar panels at this time, so customers looking for system customization like the addition of solar batteries or electric vehicle chargers will need to turn elsewhere. The warranty coverage on equipment and labor is good, but the production guarantee is lacking.
Blue Raven Solar is a somewhat young company that is relatively new to Kentucky, so you might run into some slower-than-average installation timelines as a result.
EcoWatch Rating |
---|
Better Business Bureau (BBB) Rating |
Year Founded |
Average Cost ($-$$$$$) |
Solar Services |
Brands of Solar Equipment Offered |
Warranty Coverage |
4.5 |
A+ |
2014 |
$$ |
Solar Panels, System Monitoring |
Trina Solar, Canadian Solar, SolarEdge, Silfab, SunPower |
25-year manufacturer warranty; 10-year workmanship warranty, 2-year production guarantee |
Regional Service
Average cost
Pros
Cons
If you’re looking for a company that can provide great service and communication throughout the entire process — even after installation — then Solar Is Freedom might be the ideal solar panel installation company for you.
Solar is Freedom serves all of Ohio and Kentucky, plus parts of Indiana, yet still maintains near-perfect reviews on most consumer websites. This is especially impressive given that it’s listed as the top residential solar installer in terms of kilowatts (kW) installed in Kentucky.
Solar Is Freedom has an excellent range of products available, including some of the most affordable solar panel brands on the market. Unfortunately, this company only handles installations for panels, so customers looking for customization options in terms of solar batteries, electric vehicle chargers or other products will have to find another installer.
The warranties provided by Solar Is Freedom are below the industry standard, although most customers don’t run into equipment or installation issues, including roof leaks. Additionally, this solar installation company is relatively new and has limited experience compared to other installers, which may lead to delays in the conversion process.
EcoWatch Rating |
---|
Better Business Bureau (BBB) Rating |
Average Cost ($-$$$$$) |
Solar Services |
4 |
Not Rated |
$$ |
Solar Panels |
Regional Service
Average cost
Pros
Cons
Icon Solar has one of the longest installation histories in Kentucky, with local experience since 2009. As such, it has forged relationships with local utility companies and permitting agencies and is likely to be able to expedite your installation process.
Perhaps because of its local experience, Icon Solar understands the risk of roof leaks in Kentucky and offers a warranty specifically for this issue. It also provides solar equipment and labor warranties for ultimate peace of mind.
Icon Solar installs panels and solar batteries, and it carries a decent product selection to help you find a solar panel system that suits your needs and fits within your budget. It only accepts cash purchases and solar loans, so customers looking for a power purchase agreement (PPA) or lease will need to go with another installer.
Icon Solar also earns some bonus points for its membership of the Green Umbrella Regional Sustainability Alliance.
EcoWatch Rating |
---|
Better Business Bureau (BBB) Rating |
Average Cost ($-$$$$$) |
Solar Services |
4 |
A+ |
$$$ |
Solar Panels, Solar Batteries, Energy-Efficiency Upgrades |
Watch Below: Learn What To Know Before Going Solar in Kentucky
The average solar customer in Kentucky pays around $25,740 for an 11 kW solar photovoltaic (PV) system, or $18,018 after the federal tax credit is taken into consideration.
The total solar installation cost in Kentucky tends to be higher than the U.S. average ($23,940), but that’s because energy needs are higher in Kentucky than average. While the average American only needs a 9 kW system to offset their electricity, the average Kentucky residents needs an 11 kW system.
If you have lower energy needs, you can get away with installing a much smaller, cheaper system. Solar is priced on a per watt basis, and in Kentucky that cost is $2.34 per watt — much lower than the national average of $2.66 per watt.
There are plenty of ways you can save money going solar in Kentucky, including:
The average Kentucky homeowner needs to install an 11 kW solar system — about 32 panels — to offset their monthly energy consumption of 1,084 kilowatt-hours (kWh).2 But you may not be on par with average.
Before you install solar panels, it’s important to check your electric bill to figure out your monthly energy consumption. For example, if your household uses 800 kWh of energy per month, you’ll only need an 8 kW system (about 23 panels), which costs $18,720 in Kentucky, or $13,104 after the federal tax credit is applied.
Size of Your Solar Power System | Total System Price Before Any Rebates or Credits | Total System Price After Federal Tax Credit |
8 kW | $18,720 | $13,104 |
9 kW | $21,060 | $14,742 |
10 kW | $23,400 | $16,380 |
11 kW | $25,740 | $18,018 |
12 kW | $28,080 | $19,656 |
13 kW | $30,420 | $21,294 |
14 kW | $32,760 | $22,932 |
We’ll be honest: Kentucky doesn’t have as many solar incentives compared to some other states. But there are still some programs to capitalize on.
The federal Solar Investment Tax Credit (ITC) is the best financial incentive available to Kentucky homeowners. It’s a tax credit worth 30% of your total solar system cost, which in Kentucky comes out to about $7,722.
To be clear, this isn’t a rebate — it’s a reduction to the federal taxes you owe and rolls over for up to five years. But most people in Kentucky take around 13 years to pay off their system, so the $7,722 discount will surely help.
Solar panel systems cost between $18,000 and $33,000 on average in Kentucky — that’s not cheap. We understand if you don’t have that kind of cash lying around ready to invest in solar panels.
Paying with a solar loan is a popular and more accessible option. However, the more you pay upfront, the more money you’ll save on going solar in the long run.
As you can see in the chart above, paying in cash allows you to save thousands of dollars that would otherwise cover the interest over the lifetime of a solar loan. Plus, you to begin saving money right away with your solar production rather than waiting for your monthly energy savings to cover your loan payments.
See Also: Calculate How Much You Can Save By Going Solar
Many homeowners are surprised to learn that solar panels can increase the value of your home. According to SunPower, installing solar in Kentucky can add up to $12,000 to your home’s resale value.3
Data from Zillow also backs this up. In a study, the real estate entity found that solar panels boost home value by 4.1% on average.4
Unfortunately the state of Kentucky does not offer a property tax exemption for solar homeowners, which means that your property taxes could increase alongside your home value increase.
In the world of HGTV and YouTube, many of us like to tackle our own home improvement projects. But we wouldn’t suggest it when it comes to installing your own solar panels.
Here are the top reasons why DIY solar installation is a risky idea:
Solar installations are a lot more complicated than just nailing a solar panel onto a roof. Along with the panels, you have the mounting hardware, cables and inverters (also called charge controllers) that must be set up properly. One wrong move will not only inhibit your solar panels ability to generate electricity, but could also be extremely damging to your roof or home.
If you’re installing your own panels, you’re also the sole person in charge of securing the necessary permits, setting up interconnection and net metering with your utility company and seeking out solar incentives. If you hire a solar company, it will will take care of this for you.
If you buy solar panels for your home instead of hiring a solar panel company, there’s a chance the equipment you purchase will be covered under the product manufacturer’s warranty. But most solar manufacturers have a warranty clause that the panels must be installed by a professional solar technician. So if you’re installing them yourself, you’ll be out of luck here (unless you’re a solar technician).
Some solar panel brands may also offer a performance warranty, which typically guarantees 90% of solar electric production for 10 years and 80% at 25 years. And as we mentioned, workmanship and roof leak warranties are crucial in Kentucky to protect your payout in the event of a roof leak.
The number one reason people try to DIY a solar panel installation is to save on installation labor costs. Well, let’s figure out how much labor costs to install solar panels in Kentucky.
According to the U.S. Department of Energy’s National Renewable Energy Laboratory, labor typically accounts for at least 10% of the total cost of solar installation.5 In Kentucky where the average installation costs $25,740, you stand to save about $2,574
That’s a pretty tempting savings. But, remember that the electricity savings potential from having professionally installed and designed panels in Kentucky is upwards of $20,000.
Ultimately, it’s up to you whether or not you want to install your own panels or hire professionals. But we definitely recommend the latter.
Kentucky has over a dozen solar installers to choose from. While most people focus on finding the best price, there are other factors you should consider when looking for a solar company to hire in Kentucky.
When looking for a solar installer in Kentucky, you should hire a company that has:
One of the most important considerations for Kentucky homeowners wanting to install solar is a roof leak guarantee. Kentucky is the twelfth rainiest state, and unfortunately, roof leaks can become an issue when installing solar.
On this list of best solar companies in Kentucky, Icon Solar is the only company that has a specific roof leak warranty, regardless of your roofing material.
We encourage you to ask your solar installer about coverage in the event of a roof leak. If they offer any kind of roof leak protection, make sure it’s included in your contract.
If they don’t have roof leak protection, make sure they have a strong workmanship warranty. Roof leaks are often the result of faulty solar installation and workmanship warranties cover improper installations.
Because Kentucky sees above-average rainfall and below-average sunshine, it’s beneficial to install high-efficiency solar panels. The higher the efficiency of the panel, the more energy they’re going to produce in shorter periods of time.
If you’re new to solar, think of it this way: one hour of sunlight with a high-efficiency panel may produce as much energy as three hours of sun as a panel with a lower efficiency.
The best solar panels on the market have an output of around 330 watts (W) to 360 W each, while the output of less-efficient panels can be as low as 250 W.
In Kentucky, a licensed electrician must be involved with the solar installation process.6 Your solar installation company should have a licensed electrician on staff, otherwise, you risk hiccups with permitting for your installation.
When we rank our top solar companies, we start by identifying the factors that matter most when ensuring that our readers find a trustworthy, reliable and environmentally responsible installation. We’ve listed those factors as categories below. We then weigh these factors against the industry benchmark (a company meeting the industry standard in all categories would earn 4 stars in our rating system).
Our goal is to deliver unbiased reports and honest reviews, thus, our methodology is not affected by commercial partnerships and is specifically tailored to Kentucky homes.
The EcoWatch team gets many questions about the process and price of going solar in Kentucky. Below are some of the questions we see most often, along with our responses. If you have specific questions that aren’t answered here, reach out to our team of solar experts at solar@ecowatch.com.
Based on our reviews above, we have determined that Solar Energy Solutions is the most reputable solar energy system installer in Kentucky. This company maintains abundantly positive customer reviews, provides numerous solar solutions above and beyond the standard panel and solar battery installation, and has excellent warranty coverage suitable for Kentucky homeowners.
Our EcoWatch rating is a single score that gives you instant information about how likely you are to be pleased by a solar installer. To arrive at this score, we compare companies in Kentucky based on all of the criteria mentioned above, plus many other factors. For a complete review of how we determine a company’s EcoWatch score, check out our methodology page.
For most homeowners in Kentucky, panel efficiency and warranty coverage are the most crucial factors to consider when going solar.
Kentucky residents experience rainfall well in excess of the national average. Not only does rain mean less sunlight hitting your panels and a lower rate of production, but it also puts homes at risk of roof leaks. High-efficiency panels will help make eliminating energy bills in Kentucky more attainable, and roof leak warranties will provide peace of mind and potentially save you thousands of dollars in repairs.
Solar Is Freedom is often credited with the highest solar power system installation numbers in terms of kW in Kentucky, meaning this company is technically the most experienced with PV systems. Also in the running is Icon Solar, with over 10 years of local experience.
According to data from the Solar Energy Industries Association (SEIA), there are 40 solar companies in Kentucky, 16 of which are dedicated to installing photovoltaic equipment.
We get this question often from Kentucky residents because of the abundant rainfall in the area. Your solar panels will still produce energy when it’s cloudy or raining, but it will be less than when it’s sunny outside. For that reason, Kentucky homeowners typically opt for a high-efficiency panel brand to maximize the production even when the weather isn’t optimal.
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