Cost of Solar Panels in Kentucky: Local Solar Installation Prices (2022)

Here’s a quick look at the estimated cost of solar in Kentucky:

  • Average Cost Per Watt: $2.34
  • Cost of Average System: $19,048*
  • Cost of Energy Without Solar: $45,987
  • Payback Period: 13 Years**
  • Lifetime Savings of Going Solar: $20,247

*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit.
**Payback period is calculated assuming the system is purchased in cash.

Ecowatch Author Karsten Neumeister

By Karsten Neumeister, Solar Expert

Updated 5/19/2022

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Find Cost Savings on Solar in Kentucky

As a homeowner in Kentucky, you may be wondering: How much do solar panels cost in your area? In this article, we’ll discuss the average cost of a solar installation, how much that can save you on energy for your home and what incentives are available in your region. If you want to jump straight to getting a quote for an installation, you can follow the links below to speak with a verified professional.

Jump to Section:

  1. Cost of Solar Panels in Kentucky
  2. What Determines the Cost of Solar Panels in Kentucky?
  3. Kentucky Solar Incentives
  4. FAQ: Solar Panel Cost Kentucky

 

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SunPower

  • Pros icon Most efficient panels on the market
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Blue Raven Solar

  • Pros icon Industry-leading in-house financing
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  • Pros icon Comprehensive service offerings
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Cost of Solar Panels in Kentucky

Solar panels are priced per watt, and the average cost per watt in Kentucky is $2.34. That’s good news for Kentucky residents wanting to go solar, because it’s significantly cheaper than the U.S. average of $2.66 per watt.

According to internal data and market research, the typical Kentucky homeowner installs an 11 kilowatt (kW) solar system to offset an average monthly energy bill of $117.1 Plugging these figures into our solar calculator, we see that the average Kentucky homeowner pays around $25,740 for a home solar panel installation. However, that number drops to $19,048 after applying the 26% federal solar tax credit.

Solar Panel System Installation Cost in Kentucky

As we mentioned, solar panels are priced per watt, which means the larger your solar energy system, the larger the price tag it will come with. For example, a 5-kW solar panel system in Kentucky would cost about $11,700, while a 14-kW system would be closer to $32,760.

The table below shows the average prices for the different solar panel system sizes in Kentucky before and after applying the federal solar investment tax credit (ITC):

Size of Solar Panel System Kentucky Solar Panel Cost Cost After Federal Tax Credit
8 kW $18,720 $13,853
9 kW $21,060 $15,584
10 kW $23,400 $17,316
11 kW $25,740 $19,048
12 kW $28,080 $20,779
13 kW $30,420 $22,511
14 kW $32,760 $24,242

Interested to see the best solar companies in Kentucky that offer affordable, high-quality systems? Click here to learn more.

What Determines the Cost of Solar Panels in Kentucky?

As you’re reading through this article, keep in mind that the numbers on this page may not be the exact amount you pay for your home solar system. The cost of solar panels can vary greatly depending on many specifics of your home, like where you live and how much direct sunlight your roof receives.

Let’s look at some of the other factors that drive the cost of solar panels in Kentucky:

Solar Equipment

As noted on the chart above, the size of your solar panel system will play the biggest role in the cost. However, size is not the only cost-determining factor. The quality and brand of the solar equipment you install can also increase or decrease the price.

For example, SunPower (a national solar installer) carries the most efficient solar panels, so it tends to be a bit more expensive. Other solar companies may carry a wider range of solar brands, and some offer cheap solar panels or more affordable inverters that can reduce your overall solar installation cost. Plus, whether your home is connected to the power grid or you need an off-grid installation can affect the cost.

You’ll also want to consider any add-on features when determining the cost of your solar panel installation, like solar batteries for energy storage. Most companies will offer a variety of battery storage options — like the Tesla Powerwall or Generac PWRcell — that come with different price tags, but adding a solar battery will increase your overall cost.

Solar Financing

As is the case with most big purchases, you’re presented with different financing options for solar that will change the total cost of your solar panel system. Of course, if you take on a solar loan with a high interest rate, you’ll end up paying more for your panels over time. On the other hand, if you pay more, or all, of the cost of solar panel installation upfront, you’ll owe less.

We know it’s a big investment, but it’s best to pay as much as you can up front to maximize your solar savings.

Solar Installation Company

As mentioned earlier, different solar installation companies will offer different equipment brands that can alter the cost of your overall solar panel installation in Kentucky. The good news is that there are more than a dozen solar companies serving Kentucky’s major areas — like Louisville and Lexington — as well as more rural parts of the state.2 We recommend shopping around and comparing different quotes from different companies before deciding on a solar installer.

Kentucky Solar Incentives

Kentucky is not one of the top states for solar, likely because it doesn’t offer many statewide incentives — like tax credits or exemptions — for residents who go solar. However, it does have a favorable net metering program that rewards solar users.

Aside from that, switching to solar is a popular option for Kentucky residents who are seeking energy independence from utility companies, or are perhaps interested in lowering their electricity rates.

Whatever your reason for making the switch to clean energy, we want you to get the maximum benefit. So we’ve outlined some of the top incentives in Kentucky below.

Kentucky Solar Incentive How it Affects the Cost of Solar Panels in Kentucky
PACE Financing Property Assessed Clean Energy (PACE) financing allows property owners to finance the cost of their solar installation and pay back the money via a voluntary property tax assessment. Although this doesn’t lower the cost of going solar, it can be a great option for homeowners who can’t take out a traditional loan or pay for a system in cash.
Net Metering Kentucky requires investor-owned utilities and electric cooperatives (exempting Tennessee Valley Authority [TVA] utilities) to offer net metering to consumers with a capacity of up to 30 kW. Customers are credited at full retail rate.3 (Learn more about net metering here)
Local Solar Rebates & Incentives There are a handful of local utilities that offer energy efficiency rebates, which solar companies can complete along with your panel installation. For instance, the Blue Grass Energy Cooperative offers rebates up to $750 for air sealing and ceiling installations, and Jackson Energy Cooperative offers up to $2,000 to households for weatherization.4,5 Check out DSIRE to see if your utility offers any applicable incentives to your home solar system.
Federal Solar Tax Credit The solar investment tax credit (ITC) allows solar adopters to claim 26% of their total solar equipment and installation costs as a tax credit on their next federal filing. The 26% credit is in effect for any solar project purchased in 2022, however, the tax credit is set to decrease to 22% in 2023 and disappear completely for residential systems in 2024 if it’s not extended by the federal government.
Incentives for Energy Independence This state incentive is for commercial solar installations (and other renewable energy facilities) but it’s a pretty enticing offer. Kentucky offers incentives — including income tax credits, sales and use tax incentives — to facilities that don’t use fossil fuels as an energy source.6

Kentucky Installed Solar System Costs in 2022 By Panel Brand

As we mentioned above, the brand of solar equipment you install will play a huge role in the total cost of your solar panel installation. Below, we’ve highlighted some of the best solar panels with a look into how expensive each brand’s panels run per watt.

Solar Panel Brand Average Cost Per Watt ($-$$$$$)
LG Solar $$$
Canadian Solar $$
JA Solar $$
Mission Solar $$
Panasonic $$
Q Cells $$
REC $$$
Silfab $$$
SunPower $$$$$
Tesla $$
Trina Solar $$$

 

People Also Ask 

EcoWatch FAQ: Solar Panel Cost Kentucky

The EcoWatch team fields many questions from Kentucky homeowners interested in solar. These are some of the more popular questions we see from readers:

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Karsten Neumeister

Solar Expert

Karsten Neumeister is a solar energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the renewable energy sector of New Orleans, focusing on solar energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.