Rebates

Atmos Energy provides rebates to residential and commercial for natural gas heating equipment through the Kentucky High Efficiency Rebate Program. When Atmos Receives the Kentucky High-Efficiency Rebate Installation and Verification Form with a customer's Atmos Energy account number, recent Atmos Energy utility bills, and dated purchase receipts/proof of installation for the eligible equipment, they will issue a check within 10 weeks. In addition to boilers, furnaces and water heating units, programmable thermostats are eligible for an incentive of $25. Forms and authorized dealers can be found on the web site above. All equipment requirements must be met in order to

Blue Grass Energy offers a number of services to its commercial and industrial customers, including assistance with power quality, power factor correction, distributed generation, energy management systems, and exterior lighting.

Blue Grass Energy provides a variety of rebates to its residential customers for increasing their energy efficiency. This includes the Heat Pump Retrofit Program, the Button-Up Weatherization Program, and the ENERGY STAR Manufactured Home Program. Additionally, BGE provides the SimpleSaver program, which gives rebates to customers who reduce their use of air conditioners during peak times. BGE also provides the Community Assistance Resources for Energy Savings (CARES) program, which provides an incentive of up to $2,000 to households for weatherization and energy efficiency measures through their local Kentucky Community Action Agencies (CAA) network. See website for more information.

Much of the information presented in this summary is drawn from the U.S. Department of Energy’s (DOE) Building Energy Codes Program and the Building Codes Assistance Project (BCAP). For more detailed information about building energy codes, visit the BCAP websites.

The Kentucky Building Code (KBC) is updated every three years on a cycle one year behind the publication year for the International Building Code. Any changes to the code by the state of Kentucky are submitted to the Board of Housing for review by the Office of Housing, Buildings, and Construction Division of Building Codes Enforcement. The division is then

Clark Energy provides a variety of rebates to its residential customers for increasing their energy efficiency. This includes the Heat Pump Retrofit Program, the Button-Up Weatherization Program, and the ENERGY STAR Manufactured Home Program. Additionally, Clark Energy provides the SimpleSaver program, which gives rebates to customers who reduce their use of air conditioners during peak times. Clark Energy also provides the Community Assistance Resources for Energy Savings (CARES) program, which provides an incentive of up to $2,000 to households for weatherization and energy efficiency measures through their local Kentucky Community Action Agencies (CAA) network. See website for more information.

Columbia Gas of Kentucky offers rebates to residential customers for the purchase and installation of energy efficient appliances and equipment. These programs include:

• A Low-Income Furnace Replacement Program
• A Home Energy Checkup Program
• A Natural Gas Appliance Rebate Program

Water heaters, furnaces and space heating equipment are available for cash rebates. Additionally, free home energy audits are available to Columbia Gas customers. All efficiency and performance requirements must be met in order to receive rebates. Some installation requirements may also apply. All application and information forms are available on the program web site. Mail-in rebate applications should be sent to

Cumberland Valley Electric offers a number of rebates for:

• Weatherization
• HVAC Duct Sealing
• Energy Efficient new construction
• Appliance Recycling Program

Please visit the utility website for more information. 

The Smart $aver® program offers incentives for residential customers to increase the energy efficiency of homes. Incentives are provided for qualifying heating and cooling equipment installation or service, heat pump water heaters, attic insulation with air sealing, duct insulation and sealing, and ENERGY STAR qualified variable-speed pool pump. Duke Energy Kentucky’s residential electric service customers residing in single-family homes, condominiums, mobile homes, townhomes and duplexes are eligible for some or all of the incentives, with eligibility requirements vary with technologies. All incentives are paid after completion of the services. Certain residential customers are also eligible for a free energy audit

Through the Green Bank of Kentucky, executive branch state agencies may be eligible for three separate energy loan products, depending on the proposed energy conservation improvements. Prior to applying, all agencies are required to submit an energy survey (available on the Green Bank's web site). The Green Bank will then forward the loan application packet (including information regarding the additional required documentation) for the agency to complete and submit. All application letters must be signed by the agency head.

Initial funding for the Green Bank of Kentucky provided by the American Recovery and Reinvestment Act (ARRA) through the Kentucky State

In April 2008, Kentucky enacted legislation allowing a 30% state income tax credit for taxpayers who install certain energy efficiency measures on their principal residence or residential rental property. These energy efficiency measures include:

• Qualified Energy Property Installation:* Water Heaters, Heat Pumps, Central Air Conditioners, Hot Water Boilers, Advanced Main Air Circulating Fans
• Weatherization Measures: Windows and Storm Doors, Added Insulation

The tax credit may not exceed $100 for insulation, and $250 for qualified energy property, windows and storm doors. The total tax credit may not exceed $500 for any combination of qualified energy property and weatherization measures.

Kentucky also

Farmers RECC offers several incentives to reduce energy use. Please contact the coop for more information on these programs as details are subject to change.

Insulation Rebate: The Button Up program incentivizes investments in insulation to reduce energy loss from your home. A pre- and post-upgrade inspection are required to verify savings. Rebates are available up to $750.

Heat Pump Retrofit: Customers can receive up to a $750 rebate for installing a new air-to-air pump if they are replacing a ceiling cable, baseboard or electric furnace heat source. The new heater must meet certain qualifications.

Touchstone Energy Home Program: Customers

Grayson Rural Electric Cooperative provides a variety of rebates to its residential customers for increasing their energy efficiency. This includes the Heat Pump Retrofit Program, the Button-Up Weatherization Program, and the ENERGY STAR Manufactured Home Program. Additionally, GREC provides the SimpleSaver program, which gives rebates to customers who reduce their use of air conditioners during peak times. GREC also provides the Community Assistance Resources for Energy Savings (CARES) program, which provides an incentive of up to $2,000 to households for weatherization and energy efficiency measures through their local Kentucky Community Action Agencies (CAA) network. See website for more information.

The Greater Cincinnati Energy Alliance provides loans for single family residencies and owner occupied duplexes in Hamilton, Butler, Warren, and Clermont counties in Ohio and Boone, Kenton, and Campbell counties in Kentucky. To qualify for loans, homeowners must be within the Energy Alliance service territory, adhere to ENERGY STAR® minimum standards, and the upgrade must be completed by a participating Energy Alliance home performance contractor or installer.

Homewoners can review what energy efficiency upgrades are available and apply for either a 6.99% Whole Home loan (which requires a Whole Home Energy Assessment) or a 9.99% Improvement Specific loan from $1,000

Find more information on the guidelines of this program here.

In August 2007 Kentucky established the Incentives for Energy Independence Act to promote the development of renewable energy and alternative fuel facilities, energy efficient buildings, alternative fuel vehicles, research & development activities and other energy initiatives. For renewable energy facilities, the bill provides incentives to companies that build or renovate facilities that utilize renewable energy, which may include:

•  Tax Credits: up to 100% of the Kentucky income tax or the limited liability entity tax
• Sales and Use Tax:  tax incentives of up to 100%
• Wage assessment: incentives of up

Inter-County Energy Cooperative offers loans for members that install Electric Thermal Storage units, geothermal and air-to-air heat pump heating and cooling equipment in their homes. Loans are limited to $15,000 a 6 year term. The interest rate is fixed at 4%. Check the website or contact the utility for more info.

Inter-County Energy Cooperative offers several energy efficiency and demand-side management programs for residential customers. Incentives are available for heat pumps and weatherization measures. Inter-County Energy also provides a SimpleSaver Program for limiting the use of air conditioners at peak times. Inter-County Energy also provides the Community Assistance Resources for Energy Savings (CARES) program, which provides an incentive of up to $2,000 to households for weatherization and energy efficiency measures through their local Kentucky Community Action Agencies (CAA) network. See website for more information.

Inter-County Energy Cooperative provides incentives of up to $750 for homeowners that follow the Touchstone Energy Home standards when designing a new home. In order to participate in the program, the homeowners must contact the Member Services Department at Inter-County Energy prior to construction beginning. A pre-drywall inspection and a final inspection and testing must be performed.

In April 2008, Kentucky enacted legislation which required the Kentucky Public Service Commission (PSC) to develop interconnection and net metering guidelines for all retail electric suppliers operating in Kentucky (excluding TVA utilities). The Kentucky PSC adopted those guidelines on January 8, 2009 (Order 2008-00169).

The PSC's rules set forth a two-tiered approach to simplify the interconnection process:

• Level 1: applies to inverter-based systems up to 30 kilowatts (kW) in capacity, certified to the UL 1741 and complying with IEEE 1547. Systems cannot require the utility to make modifications to its system in order to be interconnected (the PSC guidelines provide

Established in Jackson County in 1938, Jackson Energy Cooperative, A Touchstone Energy Cooperative, is a regional utility with headquarters in McKee, Kentucky, serving over 51,000 members in 15 southeastern Kentucky counties. It currently offers several rebate programs to members for increasing the efficiency of homes. 

Jackson Energy Cooperative provides a variety of rebates to its residential customers for increasing their energy efficiency. One of these is the SimpleSaver program, which gives rebates to customers who reduce their use of air conditioners during peak times. Jackson Energy Cooperative also provides the Community Assistance Resources for Energy Savings (CARES) program, which provides

Kenergy is an electric cooperative that serves 51,000 households and commercial customers in 14 western Kentucky counties. Currently, Kenergy offers three rebate programs for residential customers who wish to increase the efficiency of their homes.

Customers can receive rebates for installing Energy Star geothermal, duel fuel, or air source heat pumps or have their existing HVAC unit professionally cleaned and serviced for a rebate. Kenergy also offers a rebate for purchasing an Energy Star clothes washer or refrigerator. The amounts for these rebates are as follows:

• Air source heat pump: $50
• Duel fuel heat pump: $200
• Geothermal heat pump: $200

Kentucky Power offers its residential customers The Targeted Energy Efficiency Program, which provides weatherization and energy efficiency services to qualifying residential customers who need help reducing their energy bills and improving their homes’ safety and comfort. Program services can include:

• Energy Audit
• Air infiltration diagnostic test to find air leaks
• Air leakage sealing
• Attic, floor, side-wall insulation
• Duct sealing and insulation
• High efficiency lighting upgrades
• Domestic hot water heating insulation
• Energy efficient doors and windows
• Customer education

Visit the program website or contact the utility for more information.

 

 

 

In Kentucky, solar easements may be obtained for the purpose of ensuring access to direct sunlight. Easements must be expressed in writing and will become an interest in real property that may be acquired and transferred.

 Kentucky Utilities Company's Home Energy Rebate program provides incentives for residential customers to upgrade to energy efficiency home appliances and heat and air conditioning equipment.  Rebates are offered for refrigerators and freezers, clothes washers, dishwashers, window film, heat pump water heaters, central air conditioners, and air-source heat pumps.  The amount of rebates offered per customer account per year is limited, and varies by type of equipment.

Meade County RECC offers rebates to residential members who install energy-efficient systems and equipment. New homebuilders can also access rebates for installing energy-efficient equipment through the Touchstone Energy New Home Program. Members and new homebuilders can apply for rebates for installing Energy Star-qualified products that include:

• Air-source heat pumps
• Dual fuel heap pumps
• Geothermal heat pumps
• Clothes washers
• Refrigerators

Members may also receive a rebate of $25 for having up to three HVAC units professionally cleaned and serviced. Each unit qualifies for the $25 rebate once per calendar year. For more information, see the program web site.

The Mountain Association for Community Economic Development (MACED) offers loans to small and mid-sized businesses, non-profits, schools and municipalities to improve energy efficiency through its Energy Efficient Enterprises program. Commercial loans can be used to purchase a wide-variety of equipment and to pay for energy efficiency upgrades and renewable energy installations. The micro-loans (up to $50,000) may be used for lighting upgrades and the purchase of energy efficient appliances. The program is flexible; the loans are designed to finance energy efficiency projects that maintain a positive cash flow due to the resulting energy savings. MACED has an energy specialist on

Four rural utility cooperatives in Eastern Kentucky (Big Sandy RECC, Fleming-Mason RECC, Grayson RECC, and Jackson Energy) work with MACED to provide energy retrofits as part of utility service under the KY Energy Retrofit Rider. The program, How$martKY, addresses a barrier that households and small businesses face when making an up-front investment in energy efficiency improvements such as insulation, air-sealing and HVAC upgrades.

Rather than paying for energy conservation measures up-frot, How$martKY allows customers to make installment payments as part of their monthly utility bills, gradually paying for the efficiency upgrades by using part of the energy savings generated by

Note: In May 2021, in a general rate case for Kentucky Power Company, and the first such case to involve newly proposed net metering rates since S.B. 100 went into effect, the Kentucky Public Service Commission required that the netting period for Kentucky Power Company's net metering rate remain at one month, and required an export credit rate of  9.746 cents per kWh. Later rate cases for Kentucky Utilities (KU) and Louisville Gas & Electric (LGE) made similar determinations, setting export credit rates of 7.366 cents per kWh for KU and 6.924 cents per KWh for LGE.

Note: In the

Under the County Agricultural Investment Program (CAIP), the Governor's Office of Agricultural Policy (OAP) offers grants for farms that incorporate energy efficiency into their operations. A wide range of energy efficiency technologies are eligible for grants, given they meet the energy savings criteria.* Applications are accepted on a rolling basis. See the OAP homepage for application materials, reporting forms, and program guidelines. New applications and guidelines are available for each calendar year. Customers may also contact the Office of Agricultural Policy about loans in addition to the grant.

Eligible projects include:

• Upgrades to farm equipment
• Energy efficient lighting
• Building Insulation

Owen Electric Cooperative, Inc. (OEC) serves over 150,000 customers in nine north-central Kentucky counties: Boone, Campbell, Carroll, Gallatin, Grant, Kenton, Owen, Pendleton and Scott. For residential customers, Owen Electric offers some rebates for the installation of energy efficient measures. The Button-Up Program provides incentives for weatherization measures and the SimpleSaver Program provides a rebate for reducing the use of air conditioners at peak times. Incentives are also available for heat pump retrofits and manufactured homes. See the program website for complete details. 

 

In April 2008, Kentucky enacted legislation establishing a 30% state income tax credit for certain solar, wind and geothermal installations on single or multi-family residences and on commercial property. Kentucky corporate taxpayers may take the 30% credit on any of the following equipment installed on commercial property:

• Active or passive solar space-heating systems
• Combined active solar space-heating and water-heating systems
• Solar hot water systems
• Wind turbines

In addition, Kentucky corporate taxpayers may take a credit equal to $3 per watt (DC) of rated capacity for the installation of a photovoltaic (PV) system. Solar and wind technologies have a maximum tax

Note: As of January 1, 2016, this tax credit is no longer available for new installations.

In April 2008, Kentucky enacted legislation establishing a 30% state income tax credit for certain renewable energy installations on residential and commercial property (see the Kentucky Renewable Energy Tax Credit (Corporate) for more information on taking the credit for installations on commercial property).

Kentucky taxpayers may take the 30% credit against individual income taxes for any of the following equipment installed on their principal residence:

• Active or passive solar space-heating systems
• Combined active solar space-heating and water-heating systems
• Solar hot water systems
• Wind turbines

Kentucky offers a sales and use tax exemption for machinery for new and expanded industry. In 2021, the Kentucky Department of Revenue offered guidance on how this exemption may apply to solar energy systems.

According to the guidance, solar energy system components that are involved in the production of electricity for sale may be exempt from sales and use tax. The exemption would not apply to components not directly involved in electricity production, like distribution lines, transformers, and battery storage systems. The exemption would also only apply to solar energy systems that produce electricity for sale, rather than for on-site use.

Salt River Electric serves as the rural electric provider in Kentucky's Bullitt, Nelson, Spencer, and Washington counties. Residential customers are eligible for a variety of cash incentives for energy efficiency. The Touchstone Energy Home Program provides a rebate of up to $750 to elegible customers building new homes that satisfy the energy efficiency requirements of the program, and who wish to install an electric water heater and either a Geothermal Heating/Cooling System or an Electric Heat Pump.  Salt River Electric also provides an incentive for retrofitting electric heat pumps. In addition, Salt River Electric provides a Simple Saver program for

South Kentucky Rural Electric Cooperative Corporation (RECC) provides service to more than 60,000 customers in southeastern Kentucky. To promote energy efficiency to residential customers, South Kentucky RECC offers a variety of rebates.

See the website listed above for program details.

 

In August 2007 Kentucky established the Incentives for Energy Independence Act to promote the development of renewable energy and alternative fuel facilities, energy efficient buildings, alternative fuel vehicles, research & development activities and other energy initiatives. For renewable energy facilities, the bill provides incentives to companies that build or renovate facilities that utilize renewable energy, which may include:

• up to 100% of the Kentucky income tax or the limited liability entity tax
• sales and use tax incentives of up to 100%
• a wage assessment of up to 4% for associated employees
• advanced disbursement of post-construction incentives

A renewable energy facility

In August 2007 Kentucky established the Incentives for Energy Independence Act (IEIA) to promote the development of renewable energy and alternative fuel facilities, energy efficient buildings, alternative fuel vehicles, research & development activities, and other energy initiatives. For renewable energy facilities, IEIA provides incentives to companies that build or renovate facilities that utilize renewable energy. A renewable energy facility is defined as one that generates at least 50 kW of electricity from solar power or at least 1 MW from wind power, biomass, landfill gas, hydropower or similar renewable resources. The electricity must be sold to an unrelated party. The

Taylor County RECC offers rebates to residential customers for a variety of energy efficiency measures including air-to-air heat pumps and new construction incentives.

Rebate amounts are subject to change; please contact the utility or refer to the program website for more details. 

16 Rural Kentucky Electric Cooperatives participate in the Touchstone Energy Cooperatives program. These cooperatives participate in multiple programs that offer savings and rebates to customers. Most cooperatives offer heat pump rebates, weatherization rebates, a thermostat participation program, participation in the Energy Star Manufactured Home program, and the Community Assistance Resources for Energy Savings (CARES) program which provides an incentive to enhance the weatherization and energy efficiency services provided to the end-use members by the Kentucky Community Action Agencies (CAA) network. See the website to check what programs are offered by your cooperative.

Tennessee Valley Authority (TVA) and participating power distributors of TVA power offer a performance-based incentive program to homeowners and businesses for the installation of renewable generation systems from the following qualifying resources: PV, wind, hydropower, and biomass. The long term Green Power Providers program replaces the Generation Partners* pilot program. The energy generated from these renewable generation systems will count towards TVA's green power pricing program, Green Power Switch.

The Green Power Providers program contract term is 20 years. Generation credit will be paid at the following flat rates for the entirety of the 20-year contract:

•Residential/GSA-1 customers with system

The Tennessee Valley Authority (TVA) now compliments the small generation Green Power Providers Program by providing incentives for mid-sized renewable energy generators between 50kW and 20MW to enter into long term price contracts. The goal for total production from all participants is 100MW, with no more than 50MW from any one renewable technology. The Renewable Standard Offer program also includes Solar Solution Initiative program that offers additional financial incentives for Solar Photovoltaic (PV) projects. 

TVA bases the standard offer for customer generators off of a seasonal time-of-day averages chart, which sets base prices for the term of the

TVA offers a variety of rebates to local power company and TVA direct-served residential customers who purchase and install various energy-saving technologies. Eligible technologies include heat pumps, water heaters, duct/air sealing, insulation, and window replacement. All rebate-eligible home energy services or projects must be completed by members of the TVA EnergyRight Quality Contractor Network. 

In-person home energy evaluations are offered through participating local power companies. See program website for details regarding specific equipment requirements. 

Solar Solutions Initiative (SSI) is a pilot program that offers additional financial incentives for Solar PV systems participating in the Renewable Standard Offer program. Applications for new projects for the year 2015 will open on January 2, 2015. Participants applying for the Solar Solutions Incentive program are required to apply through the Renewable Standard Offer program.

The program offers performance based incentive of $0.04/kWh for the first 10 years after the project is operational. This incentive is additional to the seasonal and time-of-day price for electricity offered through the Renewable Standard Offer program.

The total capacity for the

The Tennessee Valley Authority (TVA) energy right Heat Pump Plan provides financing to promote the installation of high efficiency heat pumps in homes and small businesses. Installation, performance, and weatherization standards ensure the appropriate sizing of equipment and operation of the system. TVA maintains a Quality Contractor Network (QCN) from which customers can choose an installer. Through a third-party lender, TVA provides financing for residential heat pumps with repayment on the customer’s electric bill and a term of up to 10 years. The programs are independently administered by local power companies served by TVA.