How much do solar panels cost in Kentucky?
Installing solar panels on your home can cost anywhere from $10,000 to $30,000 or more, although individual costs vary significantly. The total capacity of installed solar panels, in kilowatts (kW), is an important cost factor.
The typical size of a Kentucky system is 11 kW. Considering the national average is a 6 kW system, it's understandable why the average price in Kentucky is higher.
Larger systems with more panels are more expensive. Above, a Vine Grove solar customer said he paid about $87,000 for his system last year.
Average cost by system size in Kentucky
| 8 kilowatts | 9 kilowatts | 10 kilowatts | 11 kilowatts | 12 kilowatts | 13 kilowatts | 14 kilowatts | |
|---|---|---|---|---|---|---|---|
| After federal tax credits | $13,104 | $14,742 | $16,380 | $18,018 | $19,656 | $21,294 | $22,932 |
| Before federal tax credits | $18,720 | $21,060 | $23,400 | $25,740 | $28,080 | $30,420 | $32,760 |
| Estimated roof size | 1100 m2. | 1300 m2. | 1500 m2. | 1,750 m2 | 1900 m2. | 2,100 m2 | 2,300 m2 |
Source: EcoWatch
Are solar panels worth using in Kentucky?
Kentucky doesn't get as much sun as southwestern states, but it gets enough sunlight for solar panels to be productive. According to Angela from Manchester, switching to solar energy "never pays for itself".
Angela switched to solar a few years ago and costs have dropped since then. According to the Solar Energy Industries Association, the cost of solar energy in Kentucky has dropped 54% over the past 10 years.
Over 25 years, solar panels can save you $20,247.
Like many people in Lexington, Jessie said, “The high cost of electricity pushed me to turn to solar energy.” After the panels were installed, the electricity bill was "relatively low."
It's a common misconception that solar panels reduce your monthly electric bill, but that's not always the case. The good thing is that many people who pay their bills after switching to solar energy are paying much less than before.
Ultimately, the viability of solar panels depends on a combination of factors related to cost, incentives, energy savings and individual circumstances.
In addition to economic factors, many people choose solar energy out of environmental concerns and a desire to reduce their carbon footprint. Kentucky's traditional reliance on coal means that switching to solar energy could have a positive impact on the environment.
» GUIDE: Guide for installing solar panels
Solar costs: Kentucky and surrounding states
| Average price per watt | Typical system dimensions | Average initial cost* | repayment period** | 25 years of savings** | |
|---|---|---|---|---|---|
| Kentucky | $2.34 | 11 kilowatts | $18,018 | 12 years | $20,247 |
| Tennessee | $2.49 | 12 kilowatts | $20,916 | 13 years | $19,688 |
| Ohio | $2.56 | 9.5 kilowatts | $16,128 | 12 years | $19,272 |
| Virginia | $2.75 | 11 kilowatts | $21,175 | 12 years | $21,692 |
| West Virginia | $2.64 | 11 kilowatts | $20,328 | 13 years | $19,893 |
| Indiana | $2.68 | 9.5 kilowatts | $17,822 | 12 years | $21,994 |
| North Carolina | $2.54 | 6 kilowatts | 13,815 | 13 years | $20,035 |
*ITC before federal tax credit; **In case of cash payment
Cost Factors for Tanning in Kentucky
The amount you will pay for your solar panels depends on the size of your system, the quality of the equipment and the condition of your roof. A permitting fee is also charged for compliance; designed for optimal exposure to sunlight; labor for safe installation; and maintenance to ensure maximum performance.
- System Size: The total capacity (measured in kilowatts) of installed solar panels is an important cost factor. Larger systems with more panels are more expensive.
- Equipment Costs: The quality and efficiency of solar panels and inverters vary. High-efficiency or premium-brand solar panels usually cost more. Adding a battery system for energy storage increases the overall cost.
- Labor Costs: Includes costs associated with professional system installation, including site assessment, system design, and actual installation. Labor rates vary depending on your location in Kentucky and the experience of the installer.
» COMPARE: The most efficient solar panels
The condition of your roof
If your roof is steep, irregularly shaped, or needs major modifications, installation may be more expensive. Likewise, the costs of ground-mounted systems also vary depending on the complexity.
Solar panels usually last 25 years.
If you live in an older home, make sure the roof is stable enough to support the solar panels. Quality solar panels should last between 25 and 30 years, so you want your roof to last at least that long. We hear a lot of complaints from solar customers that they have to remove the panels, repair the roof, and then pay to reinstall the panels. This is a frustrating and expensive process; avoid it if you can.
» Make sure: Do you need to replace your roof before the sun goes down?
Permits and taxes
Depending on your local municipality, fees associated with permits and inspections may apply. Some utility companies in Kentucky may charge a fee to connect your solar system to the grid. If you finance your solar system, interest and financing costs can add to the total cost over time.
Other cost factors
Solar panels require minimal maintenance, but any repairs or replacement of components, periodic cleaning and monitoring of the system increase lifetime costs.
» MORE: Why are solar panels so expensive?
Solar incentives in Kentucky
The federal Solar Investment Tax Credit (ITC) is the single most important factor in reducing the cost of solar energy in Kentucky. If you install a residential solar panel system before the end of 2032, you can deduct 30% of the total cost of the system (including equipment, labor and permits) from your federal taxes.
The average ITC in Kentucky is $7,722 in 2023. The credit drops to 26% in 2033 and 22% in 2034.
» LEARN: Solar incentives in Kentucky
Compare solar installation companies in Kentucky
Compare the top solar companies in Kentucky below. To find out more, read our guide to finding the best solar companies.
» TIPS: Tips for getting the best solar energy prices
| power of the sun | Blue Crow Sun | awning | |||||
|---|---|---|---|---|---|---|---|
| First class |  | power of the sun | Read the reviews | Customer rating 2,173 opinions2,173 opinions | Free quote | Payment Options Money, rent, credit. | Warranty 25 years (system) |
| First class |  | Blue Crow Sun | Read the reviews | Customer rating49 opinions49 opinions | Free quote | Payment Options money, credit | Warranty 25 year manufacturer warranty, plus 10 year labor warranty |
| First class |  | awning | Read the reviews | Customer ratings 83 reviews83 reviews | Free quote | Payment Options money, credit | Warranty other |
General questions
Can I get free solar panels in Kentucky?
How does net metering work in Kentucky?
When you produce more energy than you consume, your utility company gives you a credit on your next bill. These credits are issued based on the rate paid by the electric company, known as the retail rate. Credits earned do not expire and are rolled over to the next billing period without limits. However, you will not be able to transfer these credits to another person or account.
» MORE: What is net metering?
How many solar panels do I need for my home?
The number of solar panels you need depends on how much electricity your home uses. The average monthly energy use in Kentucky is 1,084 kWh, which would likely require between 20 and 30 panels (depending on system efficiency and size).
How can I pay for solar panels?
You can pay cash, but most people finance solar panels. A solar loan works like any other loan: There's an application and approval process, and you'll pay it off over time (with interest).
When considering a solar loan, lease or PPA (power purchase agreement), always ask:
- Is there any payment?
- How much will I pay per month?
- When and how much will monthly payments increase?
Bottom line
Kentucky may not be the best U.S. state for home solar systems, but it may be worth purchasing panels, especially when you consider the long-term benefits, environmental impact, and potential changes in solar prices and policy.
"I'M NOT SURE? Pros and cons of solar energy.
- Article sources
- Consumer Affairs writers rely primarily on government data, industry experts, and original research from other reputable publications to inform their work. The exact sources of this article are:
- EcoWatch, “The Cost of Solar Panels in Kentucky.” Accessed August 9, 2023.
- Office of Energy Efficiency and Renewable Energy, "Homeowner's Guide to the Federal Solar Photovoltaic Tax Credit." Accessed July 12, 2023.
- Database of State Incentives for Efficiency and Renewable Energy (DSIRE), “Kentucky Programs.” Accessed August 9, 2023.
- Solar Energy Industry Association, Kentucky Solar. Accessed August 9, 2023.
- Kentucky Department of Energy and Environment, “Solar Energy in Kentucky.” Accessed August 9, 2023.
- Kentucky Solar Energy Society, “Incentives for Renewable Energy and Energy Efficiency.” Accessed August 9, 2023.
