Kentucky Solar Rebates and Incentives
If you’re lucky enough to enjoy the low utility fees prevalent in Kentucky, you can save even more money while saving the planet by taking advantage of some of the financial incentives for solar power available to state residents.
Energy costs in Kentucky are about 3.5 cents per kilowatt-hour less than the national average, largely because of the state's vast coal reserves. When utility rates are that low, renewable energy adoption is slow. It takes more creativity to realize a cost savings when you install solar in a place with low grid power rates. However, Kentucky does offer some incentives that make solar financially enticing, including tax credits, loans, and even an electricity generation partnership program.
You’re probably fairly happy with your utilities provider if you live in the Bluegrass State; after all, E. ON U.S., LLC, the main energy provider for much of the state, consistently ranks among the top utility companies for customer satisfaction. This contentedness, coupled with the widespread availability of coal, are reasons Kentucky has not instituted as many incentives for renewable energy as some other states.
|Program Type||Tax Credit|
|Technologies||Photovoltaics, Wind Energy, Solar Hot Water Heating|
|Amount||$3 per watt of direct current of photovoltaics, or 30% of installation fee for other systems, up to $500|
|Required Documentation||Energy Efficiency Products Tax Credit Form, available from website|
|Official Web Site||http://revenue.ky.gov|
Kentucky offers state tax credits for renewable energy systems installed after Jan. 1, 2009. For most of these systems, such as passive solar hot water heating, or wind energy, the rebate covers up to 30 percent of the installation fees, for any amount up to $500. For photovoltaic systems, the rebate works a bit differently, and is calculated at $3.00 for each watt of direct current of the rated capacity of the system.
For your solar hot water heating system to qualify, it must have a manufacturer’s warranty of at least five years, an installer’s warranty of at least two years, and use Solar Rating and Certification Corporation-certified collectors.
If you have a photovoltaic system, it must be installed by a company certified by the North American Board of Certified Energy Practitioners, and its panels and inverters must be certified by Underwriter’s Laboratories and meet article 690 of the National Electrical Code.
|Program Type||Performance-based Incentive|
|Technologies||Photovoltaics, Wind Energy, Biomass|
1,000 plus $0.12/kWh above the base rate for solar photovoltaic systems and $0.03/kWh
above the retail rate for all other eligible renewable sources
|Required Documentation||Application form submitted to local power company|
|Official Web Site||http://www.energy-grants.net/|
If you live in an area where utilities are provided by one of the 91 participating power companies serviced by the Tennessee Valley Authority (TVA), you may qualify for a partnership program where you can earn discounts on your power bill from renewable energy, or even make money if your renewable energy system produces more power than you consume.
If you have a photovoltaic system with an alternating current output between 500 W and 200 kW, and your local power supplier participates in the program, the TVA will purchase 100 percent of the energy at $0.12 per kWh, in the form of credits on your power bill, and periodic payments for excess credits you earn.
More information can be found at the TVA website or by calling 866-673-4340.
Corporate Tax Credit
- Energy Efficiency Tax Credits (Corporate)
- Renewable Energy Tax Credit (Corporate)
- Tax Credit for Renewable Energy Facilities
Local Loan Program
- Mountain Association for Community Economic Development - Energy Efficient Enterprise Loan Program
- Solar Water Heater Loan Program
Personal Tax Credit
Sales Tax Exemption
- Sales Tax Exemption for Large-Scale Renewable Energy Projects
- Sales Tax Exemption for Manufacturing Facilities
Utility Loan Program
- Paducah Power System - Residential Energy Efficiency Loan Program
- Pennyrile RECC - Commercial Energy Efficiency Loan Program
- Pennyrile RECC - Heat Pump Loan Program
- Salt River Electric - Comfort Loan
- South Kentucky RECC - Energy Efficiency Loan Program
- Warren RECC - Residential Heat Pump Loan Program
Utility Rebate Program
- Blue Grass Energy - Residential Energy Efficiency Rebate Program
- Clark Energy - Residential Energy Efficiency Rebate Programs
- Duke Energy - Commercial and Industrial Energy Efficiency Rebate Program
- Duke Energy - Compact Fluorescent Light Bulb In-Store Rebate Program
- Farmers RECC - Residential Insulation Rebate Program
- Grayson Rural Electric Cooperative - Energy Efficiency Rebate Program
- Jackson Energy Cooperative - Residential Energy Efficiency Rebate Programs
- Kenergy - Residential Energy Efficiency Rebate Program
- Nolin RECC - Residential Energy Efficiency Rebate Program
- Owen Electric - Residential Energy Efficiency Rebate Program
- Pennyrile RECC - Residential Energy Efficiency Rebate Program
- Salt River Electric - Residential Energy Efficiency Rebate Program
- South Kentucky RECC - Residential Energy Efficiency Rebate Program
- Taylor County RECC - Residential Energy Efficiency Rebate Program
- Warren RECC - Electric Water Heater Rebate
Rules, Regulations & Policies
Building Energy Code
Energy Standards for Public Buildings
Solar Access Law/Guideline
Related Programs & Initiatives
The U.S. Department of Energy's Alternative Fuels and Advanced Vehicles Data Center (AFDC) provides a wide range of information and resources to enable the use of alternative fuels and other petroleum-reduction options, such as advanced vehicles, fuel blends, idle reduction and fuel economy. The AFDC site offers a database of state and federal laws and incentives related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation-related topics.
The U.S. Department of Energy's Green Power Network provides news and information on green power markets and activities, including opportunities to buy green power. This site provides state-by-state information on green power marketing and utility green power programs. In addition, the site lists marketers of renewable energy credits (RECs), also known as green tags or renewable energy certificates, which represent the environmental attributes of the power produced from renewable energy projects.
The U.S. Department of Energy's Weatherization Assistance Program (WAP) enables low-income families to reduce their energy bills by making their homes more energy-efficient. Through this program, weatherization service providers install energy-efficiency measures in the homes of qualifying homeowners free of charge. The WAP program web site offers a state-by-state map of opportunities, projects and activities.
The U.S. Department of Energy's Wind Powering America site provides state-by-state information on wind projects and activities, including wind working groups, validated wind maps, anemometer loan programs, small wind guides, state-specific news, wind for schools, workshops and web casts.