Take Energy Control with Solar Power in Kentucky
Empowering the Bluegrass State with Sunshine
In recent years, the solar trend has been booming around the United States. The state of Kentucky, famous for its cultural heritage and beautiful landscapes, is also taking initiatives to promote clean and renewable energy. In terms of solar panel installation, its current ranking is 46, according to SEIA. However, recognizing the benefits of solar installation like low energy bills, grid independence, etc, the state is actively contributing to making solar transition affordable for homeowners and businesses by introducing the best solar incentives in Kentucky.
Solar Panels In Kentucky
Kentucky is among the top 5 coal producers in the United States. Though there are enough solar panels installed to power around 17,200 houses, the Solar Energy Industries Association (SEIA) reports that solar energy accounts for just 0.32% of the state’s total energy generation. It is anticipated that these figures will increase rapidly. According to the SEIA, during the next five years, Kentucky will add 3,331 megawatts (MW) of solar power.
Also, many Kentucky citizens are looking for ways to reduce their electricity bills and become more energy-independent due to rising electricity rates. Although installing solar panels on a home in Kentucky is expensive up front, there may be financial benefits to consider.
Let’s have a look at solar incentives in Kentucky to help homeowners and businesses reap all the benefits of installing solar panels in Kentucky by reducing the upfront cost and other expenses.
Solar Incentives In Kentucky For Homeowners
Kentucky offers several incentives to encourage homeowners to make solar energy investments. These incentives aim to reduce the upfront expenses associated with solar installation while increasing accessibility to the long-term advantages.
Federal Solar Tax Credit
The most significant grant available for solar panels in Kentucky is a federal tax credit that can deduct up to 30% of the solar system’s overall cost. The recently approved Inflation Reduction Act increased and extended that credit until 2032.
However, it is essential to remember that the federal credit is a solar tax credit rather than a cash-back incentive. You will receive a credit to your tax liability for the tax year in which you installed your system. You cannot claim the credit if you are not in arrears with the federal government. But you can take a partial credit and roll over the balance for a maximum of five years.
Net Metering In Kentucky
According to the Kentucky Bill 2008, the utilities are required to provide net metering to consumers that generate power using photovoltaic (PV), wind, biomass, biogas, or hydroelectric systems up to 30 kW in capacity. This expanded the state’s net metering statute. On January 8, 2009, the Kentucky Public Service Commission (PSC) published regulations. After that date, utilities had ninety days to submit tariffs that contained all of the terms and conditions of their interconnection and net metering schemes. Except for TVA utilities, net metering is accessible to all consumers of investor-owned utilities and rural electric cooperatives. For net metering, Kentucky mandates the use of a single, bi-directional meter. The cost of installing any more meters, improvements to the distribution system, or other necessary equipment to monitor the flow of energy in both directions will fall on the customer.
If a customer’s electricity consumption during a billing period surpasses the amount of electricity supplied by the utility, the client will receive credit for any excess generation at the retail rate of the utility. This credit will roll over indefinitely and show up on the customer’s subsequent bill. Credits cannot be transferred. Renewable Energy Credits are owned by the client.
Blue Grass Energy Cash-Back Incentive:
Homeowners in Kentucky can also take advantage of various regional incentives. While not directly related to solar incentives, these programs contribute to increasing the affordability and accessibility of energy-efficient home modifications. Customers of Blue Grass Energy are eligible for cash-back incentives of up to $750 for installing energy-efficient equipment, such as insulation, air sealing, and heat pumps. This program is for homeowners whose primary heating source is electricity.
Explore your Solar Savings in Kentucky
Commercial Solar Incentives Kentucky
Businesses in Kentucky can also take advantage of the Kentucky Solar Energy Tax Credit, just like homeowners can. With a $1,000 maximum credit, this credit can pay up to 30% of the installation expenses of commercial solar PV and solar water heating systems. Businesses can now more easily afford to invest in solar due to this financial relief, which frees up funds for other growth-oriented initiatives and lower operating expenses.
PACE Financing Program
The best way for solar customers to embrace solar energy is through PACE financing. This financing initiative aims to increase the accessibility of renewable energy by minimizing down payments and keeping interest rates low. Additionally, it simplifies system payment by automatically adding the monthly fees to your property tax bill.
PACE financing can be very advantageous as switching to solar in Kentucky. At this time, PACE financing is primarily offered to Kentucky’s business customers. Commercial solar clients can visit KYPACE.org to see if they qualify.
Kentucky Incentives For Energy Independence
The Kentucky Incentives for Energy Independence are a great way to lower the actual cost of solar arrays, but they are only available to commercial users. Under this program, qualifying businesses can receive the following benefits:
100% of the corporate income tax
100% of Limited Liability Entity Tax
4% of the gross wages of each employee
All tax credits combined may not exceed 50% of the capital investment in the project. If you want to go solar, Kentucky has several subsidies and incentives available for businesses and homeowners. The financial advantages of solar energy make it a good choice, from state exemptions and utility-specific programs to federal tax credits. Now is the best time for Kentuckians to invest in solar power, helping to create a sustainable future while also enjoying financial benefits, as the state continues to embrace renewable energy.
For homeowners and businesses, going solar in Kentucky is a good way to take control of the booming inflation and high energy costs. You can reach out to top solar contractors in Kentucky for top-notch solar installation services with flexible financing options. Get a FREE estimate of your solar savings in Kentucky!