A Guide to Kentucky Solar Incentives
Are you a Kentucky resident considering solar installation for your home?
Known as the coal-mining state, Kentucky still generates the majority of its electricity from coal. That’s one of the reasons why people living in the “Bluegrass State” enjoy some of the lowest utility bills in the country.
So you’re probably thinking, why mess with a good thing? Can you justify solar installation costs if you’re not paying that much for electricity anyway?
With the help of Kentucky solar incentives, solar panels have become more affordable for everyone. You can save even more money while using a renewable energy source that’s kinder to the planet. Because, frankly, we have no time to waste in transitioning from fossil fuels such as coal.
Read on to learn more about Kentucky solar rebates and tax credits.
Solar Tax Credits
The Federal Investment Tax Credit (ITC) is a nationwide tax incentive available for all consumers. With the ITC, you can get a 26 percent tax credit that covers the total eligible cost of your photovoltaic cell installation. On top of this, the state of Kentucky also offers an additional $500 tax credit.
But the time to act is now! The ITC will drop to 22 percent after December 31, 2022. Then, at the end of 2023, residential installations would no longer be eligible for the tax credit.
Kentucky Solar Incentives: Net Metering Changes
The net metering policy in Kentucky used to be one of the best in the country. Before, the full retail rate of the electricity, you return to the grid via your solar panels is credited to your next month’s bill. However, in 2019, Kentucky legislators approved rolling back net metering for solar owners by passing Senate Bill 100.
While not yet determined by the Kentucky Public Services Commission, the new proposed rate is assumed to be much lower. Estimates show that the new rate will be around 55 percent of current retail rates.
Still, some net metering is better than none at all. You’ll still be able to get some credit for the surplus energy generated by your panels.
Solar Installer Rebates and Deals
Kentucky doesn’t have a mandated state rebate for solar installation. However, solar providers and power authorities in Kentucky have their own rebates and bonus programs.
For example, the Tennessee Valley Authority, one of the biggest local utilities, offers a $1000 rebate. This rebate applies to large and small installations alike. Therefore, the cost of a smaller residential install takes a bigger cut, and you still benefit from the 26 percent ITC.
Some solar installers also offer flexible financing options and deals. The folks at Blue Raven Solar can hook you up with a power purchase agreement (PPA) instead of paying a fixed monthly lease. You also get freebies such as smart thermostats and LED lights that can significantly reduce your heating and cooling costs.
Going Green in the Bluegrass State
Are you ready to transition to a cleaner, greener energy source? By taking advantage of Kentucky solar incentives, you can make this happen without incurring much damage to your finances. Ditch the coal because the future is solar! For more technology news and updates, feel free to browse our site