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Kentucky

Solar & Net Metering Policy

Available
Net Metering
None
State Tax Credit
30%
Federal ITC
None
SREC Market

Net metering is available in Kentucky, allowing solar owners to send excess electricity back to the grid and receive credits on their utility bill. SB 100 changed rules so new solar customers receive a reduced avoided-cost rate rather than 1:1 retail. Kentucky does not currently offer a state solar tax credit, though the federal 30% ITC still applies to qualifying installations.

Full Policy Details

Net Metering AvailableYes
Net Metering RateReduced/Avoided cost rate
State Tax CreditNone
Federal ITC (30%)Applies
SREC MarketNone
Utility RebatesNone
Property Tax ExemptionNo
Sales Tax ExemptionNo
Interconnection StandardPSC standardized rules

Net Metering Notes

SB 100 changed rules so new solar customers receive a reduced avoided-cost rate rather than 1:1 retail.

How Kentucky Compares to Neighboring States

StateNet MeteringState CreditProperty Tax ExemptSales Tax Exempt
Kentucky ★YesNoneNoNo
IllinoisYesNoneYesNo
IndianaNoNoneYesNo
MissouriYesNoneYesNo
TennesseeNoNoneNoNo

Frequently Asked Questions — Kentucky Solar Incentives

Does Kentucky have net metering?

Yes. Kentucky has net metering, which allows solar panel owners to receive credits for excess electricity sent back to the grid. SB 100 changed rules so new solar customers receive a reduced avoided-cost rate rather than 1:1 retail.

What solar tax credits are available in Kentucky?

Kentucky does not currently offer a state solar tax credit. However, the federal Investment Tax Credit (ITC) provides a 30% tax credit on qualifying solar installations nationwide.

What is the federal solar tax credit and does it apply in Kentucky?

The federal Investment Tax Credit (ITC) provides a 30% tax credit on the total cost of a solar installation. It applies in Kentucky for qualifying residential and commercial installations. The ITC is claimed on your federal tax return in the year the system is installed.

Is solar equipment exempt from property tax in Kentucky?

Kentucky does not have a statewide solar property tax exemption. The added value from a solar installation may be included in your property assessment. Check with your county assessor for local rules.

Is there a sales tax exemption for solar in Kentucky?

Kentucky does not currently offer a sales tax exemption for solar equipment. Sales tax applies to the purchase of solar panels and installation materials at the standard state rate.

Does Kentucky have an SREC market?

Kentucky does not currently have an active SREC market. Solar owners in Kentucky cannot generate additional income through SREC sales at this time.

Are there utility rebates for solar in Kentucky?

Statewide utility rebates are not currently available in Kentucky. Some local utilities may offer their own programs — contact your utility directly for any available incentives.

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Official Source

Kentucky Public Utility Commission

View Official Site →

Last verified: 2026-03-24 · Always confirm current incentives before installing solar.