Solar SME Kentucky
Top-Rated Local Energy Partners
Own your power with high-performance solar and smart backup!
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Kentucky has a diverse climate, with approximately 200 sunny days per year, and has historically been recognized for its coal production. Now, it is progressively embracing the advantages of solar energy. Due to the 19% increase in electricity prices in Kentucky since 2020, many companies and households are considering solar energy as a means of stabilizing their energy expenses. Solar SME, one of the leading solar companies in Kentucky, offers tailored solar energy and backup solutions to businesses and homeowners, helping to mitigate the impact of the energy crisis. We are certified local solar installers and stand out from other solar companies in the industry due to our superior warranties and high-quality solar installation services.
How much can you save on electric bills with solar in Kentucky?
In just three years, Kentucky power rates increased by 13%, from 11.5 cents per kilowatt-hour in 2021 to 13.0 cents in 2024. The state’s household budgets are impacted by this rising trend. The average price of electricity in Kentucky is currently 12 ¢/kW. Solar panels help people mitigate future rate rises by producing electricity at a fixed cost. Regardless of fluctuations in utility prices, once installed, your system generates power at the same cost for decades. The average Kentucky power user will require a 13.3-kilowatt (kW) solar panel system to offset 100% of their annual electricity consumption based on the state’s sunshine intensity and hours. In Kentucky, installing a solar system will allow you to break even on your solar investment in around 13 years. Furthermore, adding a backup battery solution will lead you to save more with maximum grid independence.
25-year Savings
$62,880
10 Years
84%
Solar Financing Options in Kentucky by Solar SME
Solar installation is a worthy investment; however, it may cost you higher to own your solar panel system. If you are unable to own due to any reason, like you are a renter or do not have enough cash in hand, some flexible solar financing options are available for you:
Solar loans are the best option for you if you want to take full advantage of a solar PV system but do not have enough investment to buy one. With a solar loan program, you will make fixed monthly payments for 5-25 years while benefiting from instant energy savings. It provides cost predictability, unlike utility bills or lease escalators, which rise over time. The best part is that the lending rate is down to 4.0% - 4.25%. Furthermore, you can avail all solar incentives and solar tax credit in Delaware with loan financing. A local solar installation company, like Solar SME, can help you to go solar with 0% APR option.
As the 30% tax credit is expiring, solar leases are emerging as the best alternative to take advantage of solar power. Third-party financing requires you to pay a fixed monthly lease payment or per-kWh rate (PPA) for the solar energy produced by the system. According to the U.S. Department of Energy, this rate is 10% to 30% lower than your electric bills. As you are not the owner, the federal tax credit and other solar incentives' expiry will not impact your savings. However, it is vital to choose your solar leasing plans wisely. Solar SME, the top solar provider in Kentucky, offers the best solar lease options for making your solar journey affordable.
Best Residential Solar Incentives in Kentucky
You have access to some best solar incentives as a homeowner in Kentucky that can significantly increase the return on investing in solar panels. Solar panels can save you thousands of dollars, so the investment is well worth it. If you live in Kentucky, here are some ways to reduce the cost of solar installation:
01- Residential Clean Energy Credit
The Residential Clean Energy Credit, or federal investment tax credit (FTC), can reduce the cost of a solar panel installation by 30%. This incentive covers the complete system, including equipment, labour, permits, and sales tax. However, on July 4, 2025, President Trump signed legislation that totally eliminated the residential solar tax credit, effective January 1, 2026, nearly a decade before its original expiration date. When you file your taxes, you can claim this incentive as a credit towards your federal tax bill. Just keep in mind that to qualify for the FTC, you need to purchase your system either with cash or a solar loan–if you lease your system, you won’t be eligible.
02- Property Assessed Clean Energy (PACE) Program
The PACE financing program in Kentucky provides access to financing for energy-efficient power systems and upgrades. This program helps homeowners finance solar panel installations through a voluntary assessment on their property tax bill.
03- Incentives for Battery Storage in Kentucky
Duke Energy customers in Kentucky can take advantage of the Duke Energy PowerPair Solar + Battery Incentive, which offers up to $9,000 in incentives for pairing rooftop solar with battery storage to help manage the grid. However, enrolment is first-come, first-served and dependent on particular tariff options like the Solar Choice or Bridge Rate.
Is net metering available in Kentucky?
In Kentucky, net metering for residential solar power is mandated by state law for some electric utilities. Any remaining energy credits at the end of a monthly billing cycle are converted into a cash credit on your account under Kentucky’s net metering policies. It’s the best reason to switch to solar power in Kentucky and get the most out of your panels.
Both KU Energy and LG&E have full retail net metering. The Kentucky Public Service Commission (PSC) authorized Duke Energy Kentucky’s switch from full retail net metering, also known as the Net Metering I (NM I) rate, to the Net Metering II (NM II) price in November 2024. Furthermore, Tennessee Valley Authority-managed electric companies in western Kentucky are not obligated to provide net metering, though they may still do so. Companies under TVA administration include Gibson, Pennyrile, Tri-County, Warren, and West Kentucky.
Why is it Worth it to Switch to Solar in Kentucky?
Kentucky receives ample sunlight to make solar power feasible. The U.S. Energy Information Administration (EIA) expects U.S. residential electricity prices to average 16.8 cents per kilowatt-hour (kWh) in 2025, up 2% from last year. With reduced solar panel costs, rising bad weather conditions, and long power outages, solar continues to deliver major financial benefits in Kentucky. Top reasons to switch to solar in Kentucky include:
Low Electric
Bills
Maximum Grid Independence
Flexible Financing Options
Increased Home Value
Earn Energy Credits/SREC Programs
The best way to determine how to maximize your solar savings in Kentucky is to consult with a local solar installer. Solar companies near you can guide you with the best solar solutions and incentives in your area and can help you to get the most out of your solar investment.
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Our Customers are Getting Up to 90% Lower Electric Bills with
Solar SME Tailored
Solar Solutions
Solar SME provides its valuable clients with an exceptional solar experience by designing solutions according to its customers’ unique needs. Also, we hold a positive image in solar marketplaces like Energysage. Moreover, we are accredited with BBB, and our happy customers share their solar experience and highly recommend Solar SME for the best solar services in Kentucky.
City: Louisville, KY
System Size: 5 kW
Annual Savings: ~$650–$800 per year
City: Lexington, KY
System Size: 6.3 kW
Annual Savings: ~$800–$950 per year
City: Bowling Green, KY
System Size: 7.5 kW
Annual Savings: ~$950–$1,100 per year
City: Owensboro, KY
System Size: 8.8 kW
Annual Savings: ~$1,050–$1,250 per year
City: Paducah, KY
System Size: 10 kW
Annual Savings: ~$1,200–$1,400 per year
City: Richmond, KY
System Size: 11.5 kW
Annual Savings: ~$1,400–$1,650 per year
Frequently Asked Questions
Solar makes sense for many Kentucky homeowners, especially with electricity rates climbing 19% since 2020. The state receives about 4.7 peak sun hours daily, which provides solid solar production year-round. Kentucky offers net metering through major utilities and Duke Energy’s PowerPair program provides up to $9,000 in incentives.
Yes. While Kentucky has moderate sunlight, solar remains worthwhile due to falling panel costs, federal tax credits, and rising electricity rates. Homeowners can significantly reduce monthly bills and gain long-term energy stability with properly sized solar systems.
Yes. Solar battery storage allows Kentucky homeowners to store excess solar energy for nighttime use or outages. Batteries also help maximize self-consumption, especially where net metering credits are lower than retail electricity rates.
Yes. Kentucky homeowners can choose cash purchases, solar loans, HELOCs, or installer financing programs. Financing options make solar more accessible, allowing homeowners to install systems with little upfront cost while enjoying immediate bill savings.
Look for a licensed, NABCEP-certified solar installer. Check reviews, warranty terms, equipment quality, and utility knowledge. A trustworthy installer like Solar SME will provide transparent pricing, accurate system design, and long-term support.