Kentucky is fairly low on state solar incentives, but it’s important to learn about the ones it does have in order to maximize your savings.
Federal Solar Tax Credit
The Federal Solar Investment Tax Credit (ITC) is a credit on your yearly taxes equal to 30% of your solar system cost. Be sure to do plenty of research before purchasing to ensure you qualify for this benefit and fully understand it. A reputable solar company will have plenty of knowledge and be able to help you here.
Net Metering
Despite an attempt to pass a bill ending net metering in Kentucky, it remains in place in the Bluegrass State. Net metering ensures solar consumers receive credit for any excess energy generated by their system. Homeowners earn credits for power sent to the grid, which can later be used to offset energy bills. Net metering extends long-term savings and shortens the panel payback period.
Other State-Specific Incentives
Although statewide programs may not be in place, two initiatives are helping in renewable energy adoption in Kentucky. However, it’s important to note that they’re only available for commercial customers..
Kentucky Property-Assessed Clean Energy (PACE) Financing
This is Kentucky’s solar financing program that provides low interest rates and minimal down payments to businesses in order to help reduce the cost of solar installations. However, it is currently available only to commercial customers.
Kentucky Incentives for Energy Independence
Businesses in Kentucky may qualify for a one-time tax incentive that covers 100% of corporate income tax, 100% of Limited Liability Entity Tax and 4% of employee gross wages. Business owners should do their research before solar purchasing to ensure they qualify.