Kentucky · 2 cities covered
How Kentucky credits home solar, which utilities follow which rules, and a free consultation with one local specialist.
The rules
In October 2024 the PSC approved a new Rider NM II for Duke Energy Kentucky that credits exports from new net metering customers at a commission set rate, revised in June 2026. In February 2026 the PSC kept the Rider NMS 2 export credit components for LG&E and Kentucky Utilities at their existing levels.
The residential solar credit (section 25D) ended for systems completed after 2025. Confirm your own situation with a tax professional.
Utilities
Your utility decides how your solar is credited. Check the name on your electric bill.
Where we work
Each city page covers the local utility, how it credits solar, and who issues permits.
Questions
Utilities regulated by the Kentucky Public Service Commission, including investor owned utilities and electric cooperatives, must offer it for eligible systems of 45 kilowatts or less. City owned electric systems are outside PSC regulation. A utility may stop adding new net metering customers once total net metering capacity reaches one percent of its single hour peak load.
Each billing period the utility gives a dollar denominated bill credit for the electricity the system sends to the grid, at a rate the PSC sets for that utility. Credits larger than the bill carry forward to the next bill, cannot be transferred to another customer or address, and are not refunded in cash when the account closes.
A system in service before its utility's first PSC compensation order under the 2019 amendments keeps the older terms, including one to one kilowatt hour credits, at that address for 25 years even if the home is sold.
The federal residential clean energy credit, section 25D, ended for home solar expenditures made after December 31, 2025, under the law signed July 4, 2025. The IRS treats the expenditure as made when installation is completed, so a system completed in 2026 does not qualify even if it was paid for earlier.
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Rules and programs change, so confirm current terms with your utility before you decide.
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