Kentucky · 2 cities covered

Solar in Kentucky: what homeowners need to know

How Kentucky credits home solar, which utilities follow which rules, and a free consultation with one local specialist.

Check your home

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Do you own the home?

Typical monthly electric bill

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The rules

How solar is credited in Kentucky

KRS 278.465 to 278.468

What the law and the utilities say

  • Kentucky law requires each retail electric supplier regulated by the Kentucky Public Service Commission (PSC), which includes investor owned utilities and electric cooperatives, to offer net metering for customer owned solar systems rated at 45 kilowatts or less, although a utility may stop adding new net metering customers once net metering capacity reaches one percent of its single hour peak load.
  • Under 2019 amendments that took effect January 1, 2020, systems that begin service after a utility's first PSC compensation order receive a dollar denominated bill credit for all electricity sent to the grid, at a rate the PSC sets for that utility, and credits larger than the bill carry forward but are never refunded in cash.
  • Systems already in service before that order keep the older terms, including one to one kilowatt hour credits, at the same premises for 25 years even if the home is sold.
  • Each cooperative files its own net metering tariff with the PSC, and city owned electric systems are outside PSC regulation.

Recent changes

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.

Federal tax credit

The residential solar credit (section 25D) ended for systems completed after 2025. Confirm your own situation with a tax professional.

Utilities

The main electric utilities in Kentucky

Your utility decides how your solar is credited. Check the name on your electric bill.

Kentucky Utilitiesinvestor owned. 77 Kentucky counties, including Lexington.
LG&Einvestor owned. Louisville and 16 surrounding counties.
Kentucky Powerinvestor owned. All or part of 20 eastern Kentucky counties.
Duke Energy Kentuckyinvestor owned. Northern Kentucky.
East Kentucky Power member cooperativescooperative. 16 member owned distribution cooperatives.

Where we work

Kentucky cities we cover

Each city page covers the local utility, how it credits solar, and who issues permits.

Questions

Common questions in Kentucky

Do all Kentucky electric utilities have to offer net metering?

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.

How are exports from a new solar system credited in Kentucky?

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.

What happens to an older system's terms if the home is sold?

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.

Is there still a federal tax credit for home solar?

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.

Does the consultation cost anything?

No. The consultation is free for homeowners, and there is no obligation to buy anything.

Who will contact me?

Our team confirms a few details with you, then one local solar company for your area contacts you to set up the visit. Your request never goes to a list.

Sources (checked September 26, 2026)

Rules and programs change, so confirm current terms with your utility before you decide.

See if solar fits your home in Kentucky

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