Kentucky has had a sluggish increase in renewable energy, but between 2020 and 2021, the number of home solar installations more than doubled, keeping the area’s solar providers very busy. But why are so many homes switching to solar power?
For starters, Kentucky has substantially lower solar prices than other states. Also, many homeowners are learning that installing a solar system is a wise investment because households in Kentucky have higher electric expenses than the national average. After paying off your panels, installing solar can save a Kentucky household up to $20,000 in energy costs. And those savings are only anticipated to grow as a result of rising electricity prices.
How to Choose the Top Solar Installer
- Read up on the solar installer’s reviews and client testimonials
- Find out about the warranties offered
- Check the solar installer’s credentials and accreditations
- Ask for the turnaround time
- Look for customized solutions
- Decide whether you want a national or local solar installation company.
- Get multiple quotes. Get a quote from at least 3 solar companies.
Kentucky Solar Energy Incentives
Residents of Kentucky are eligible for the 30% federal investment tax credit (ITC). A tax credit is a dollar-for-dollar decrease in your overall tax obligation. You might get a $3,000 credit on the federal taxes you owe if your system costs $10,000. In the event that your federal tax burden is small, the tax credit can be carried over for several years.
How Much Do Solar Panels Cost in Kentucky?
The average cost of a 5kW solar panel system in Kentucky is $14,00, and $10,360 after the federal tax credit. Average payback period: 6 years Average 20-year savings: $36,000
Factors that determine your total cost
- Size of the system
- Solar installation company
- Solar incentives, tax credits, and rebates
- Solar financing options
- Payback period
- Electricity rates in KY
- Roof condition
- Costs by city
- Home value increase