2025 Solar Incentives Guide for Lawrenceburg, KY - Tax Credits & Rebates

What Solar Tax Credits, Incentives, and Rebates are Available in Lawrenceburg?

Source: https://www.dsireusa.org/

Solar incentives are intended to make renewable energy usage more affordable via financial incentives to help people install solar panels on their homes. You may be eligible for different types of incentives, including cash back, discounts or credit towards your monthly utility bill, depending on your situation. Some incentives come from your specific utility company, county or municipality, some from the Kentucky government and others from the federal government. Some broad categories of solar incentives include:

• Tax Credits: Tax credits are dollar-for-dollar reductions (not deductions) in the amount of tax that you owe the government.
• Net Metering: You may be able to sign a net metering contract with your Lawrenceburg utility company, that may apply to all or a percentage of the excess electricity that is generated by your solar panels. They will then deduct this value from your utility bill each month.
• Rebates: Rebates, or cash back after a purchase, are usually given before any solar tax credits are calculated. These rebates may be offered by your local utility company, by your state or by your county.
• Tax Exemptions: These might come in the form of property tax exemptions, which would allow you to exclude the value added by your solar panels when paying property tax on your home. You could also look for exemptions on sales tax at the time of purchase.

Federal Solar Incentives

When you think about solar incentives, you probably think of federal incentives first. A federal incentive many people are likely familiar with is the Federal Solar Investment Tax Credit (ITC). The ITC is a tax credit for a predetermined percentage of the cost of your solar system.

The ITC applies to the total cost of installing solar panels, including the panels themselves as well as accessories, labor and equipment. You can claim this credit for panels installed after January 1, 2006, on a primary or secondary residence located in the United States that you own. Originally set at 30% of total costs, the credit has fluctuated over time, and you may qualify for different amounts depending on when your project was completed. There is no maximum claim amount.

Your local Lawrenceburg solar panel installer can give you more information about the ITC and how it applies to your situation.

In August 2022, the Inflation Reduction Act made revisions to the ITC, now referred to as the Clean Energy Credit. The Clean Energy Credit re-raises the credit up to 30% for solar installations undertaken between January 1, 2022, and December 31, 2032. At this point, the credit percentage will be reduced slightly each year until the program expires in 2035. Starting in 2023, it will also be easier to claim credits for energy storage systems under the new laws.

Click here to learn more about the new Inflation Reduction Act. To fully understand how the new Clean Energy Credit will apply to you, speak with your local Lawrenceburg solar installation expert.

State & Local Solar Incentives

Some solar incentives are often also offered at the local or state level. As with federal incentives, these might include tax credits, rebates and more. The incentives — which might be provided by your county or municipality, or by the state of Kentucky — might be offered on an ongoing basis, or for only a limited time.

Next Steps for Installing Solar in Lawrenceburg

There are many kinds of solar incentives: those given by local utility companies, those provided by the Kentucky government and those provided by the federal government, to name a few. The use of solar energy has increased enormously in the last 15 years, partially thanks to these incentives. Reach out to your local solar panel installer today to learn more and to save as much money as possible on solar panels for your Lawrenceburg home.