Solar power refers to energy from the sun, coming down in electricity and heat. It’s a clean and renewable energy source that has taken off in recent years worldwide, including in the United States. Solar energy in Kentucky has seen a slow takeoff due to its immense reliance on cheap energy from coal. In the Q3 of 2022, Kentucky ranked 46th in the US for using solar energy. However, Kentuckians have been looking for more sustainable ways of producing energy in the wake of COVID-19. Overall in 2020, energy production in the United States came from solar.
Woman standing in front of her residential solar installation.
Given the immense potential, it is important to discuss everything about adopting solar energy in Kentucky and how it is a worthwhile investment.
If you decide to go for solar energy in Kentucky, you’ll get incentives and tax rebates from the Federal and State governments. Let’s discuss what incentives you get at both levels.
The Federal Government provides a significant tax credit for people going solar energy in Kentucky. If you install your solar system before 2032, you get 30% off the entire cost, including solar panels, installation, labor, etc. For instance, if your total costs are $30,000, then the credit you get will be the following;
$30,000 × 3% = $9,000
However, the Federal Tax Credit will reduce to 26% starting in 2033, 22% in 2034, and no Credit after 2035.
You also get some incentives from the State for choosing Kentucky solar energy, which makes the transition easy. Although it doesn’t have a Renewable Portfolio Standard (RPS) goal to promote solar power, there are still helpful measures in place:
Kentucky offers an easy and affordable solar installation process. First, you need to contact an installer who reviews your energy bill and sends a representative to take measurements of your roof. Here are all the steps involved in this process:
• Once the measurements are done, and the system is designed, you’ll get the price estimates.
• The company will discuss solar financing options with you, which usually include a solar lease, solar loans, cash purchases, or a power purchase agreement (PPA).
• Sign your contract with the company after the design and financing have been finalized.
• Your system will now be installed and commissioned.
• There might be further inspections from the installer to close out your permits.
The cost of solar energy in Kentucky depends upon several factors; the size of the system is the most important one. It is important to note here that Kentucky is one of the inexpensive states in the USA for electricity at $2.34 per watt, while the National average is $2.66 per watt. Kentucky’s average power needed to offset electricity bills is 11 kilowatts (KW). Hence, the average cost of installing a solar system of 11 KW costs around $18,000 after applying for Federal Credit. It may seem expensive, but you will save a signicant amount each month, paying its entire cost within 12 years.
Although Kentucky hasn’t been the fastest to adopt solar power in the US, it is still an excellent place for transitioning to renewable energy for the following reasons:
Before we discuss the savings on going solar energy in Kentucky, it is crucial to recap the costs it incurs on customers. An average customer in Kentucky pays around $25,740 before Federal Credit, which is reduced to $18,018 after Federal Credit is applied. You can make a signicant amount of savings after converting to solar in Kentucky.
In the last decade, the cost of solar panels in Kentucky has decreased by 53%, making solar equipment more affordable than ever. As more time passes, we can expect the equipment prices to decrease even further due to the advancement in manufacturing and efficiency of solar panels. It might seem attractive to wait for prices to drop further and wait for solar, but it’s never too early to do it.
The electricity prices in Kentucky have increased by 16.5%, while the average national increase has been lower at 16%. So, to counter the rise in energy costs, it is pertinent to convert to solar. An appropriately sized solar energy system in Kentucky can save you around $20,247 on utility bills over its lifespan.
However, these costs are without considering the rise in energy costs. Considering the rising energy costs, the savings will be much higher. These figures are based on a cash purchase, but the numbers differ for other payment methods.
Climate change is arguably the biggest threat facing humanity today, and immediate measures are required to halt the upcoming catastrophe, which is already showing its severe signs. From frequent ooding to heatwaves to crop destruction, the world is living on borrowed time, and almost everyone feels the impact. One of the best ways to halt climate change is switching to renewable energy, and solar holds a prime position here:
Using solar energy in Kentucky can reduce the State’s reliance on fossil fuels, such as coal and gas, signicantly reducing carbon emissions. The carbon 1 footprint from solar panels is much smaller, causing less air pollution and carbon emissions. It is not just food for the environment but also for our personal health, as pollutants from fossil fuels can cause respiratory and neurological damage.
Traditional power plants using fossil fuels require large amounts of water for cooling, which is ultimately released back into waterways, polluting them. If we use renewable energy in Kentucky, keeping the water clean and drinkable won’t be such an issue.
Energy production for fossil fuels releases many toxic greenhouse gasses into the atmosphere, which are signicant drivers of climate catastrophe. While many think Kentucky might be safe from these disastrous effects for being an inland state, nothing could be farther from the truth, according to the United States Environmental Protection Agency.
The increase in humidity and the changes in rainfall led to more floods, resulting in droughts in Kentucky. Moreover, climate change will also affect the alignment of Kentucky’s forests and leaf canopy. Heatwaves will also occur more frequently, posing severe health risks for many, so solar energy in Kentucky can make a big difference.
Fossil fuel energy production causes a lot of harm to ecosystems, such as strip mining, mountaintop removal, large land tract removal, and more. It leads to the destruction of ecosystems and affects humans, animals, and plants alike. 1 Solar farms can be built on degraded lands that are not viable for anything else. In fact, solar panels can have a positive impact on farmlands and natural habitats. For instance, they have been linked with an increased honey bee population. By creating diverse habitats, Kentucky solar panels have improved soil fertility and agriculture.
Solar energy in Kentucky provides a wide range of benets for both homeowners and businesses, such as the following;
When you become less reliant on the National Grid, you’re less prone to outages that affect your business. In power outages, businesses lose many productive hours, costing them a lot of money. Homeowners also enjoy an uninterrupted energy supply which helps them complete their tasks easily and keeps the appliances running.
Installing solar power in Kentucky on your property will signicantly increase its value. Zillow estimates that properties with solar installations sell for 4.1% higher than properties that do not have solar panels. For instance, the average home price in Kentucky is $188,463, so you can expect an increase of more than $7,700 when you install solar panels.
One of the most signicant benets of installing solar energy in Kentucky is the 1 money you save when you don’t have to pay electric bills. Solar panels repay their costs within 12 years of installation, which is an incredible bargain. Given that the electricity prices in Kentucky have been rising, going solar makes perfect sense.
Given the immense benefits of solar power and the rising costs of fossil fuel electricity, it makes perfect sense for homes and businesses to go for solar energy in Kentucky. Solgen Power will welcome you with open arms if you’re planning to go solar. Our incredible founders have 30+ years of combined experience in solar sales, and we have been listed as the 12th fastest-growing company per Inc 5000.
Our mission is to build a bright future by providing solar energy in Kentucky to everyone. At Solgen, we provide a $0 Down Financing program where you don’t need to pay any upfront costs. The first installment is due in the 6th month of installation, so you can go for solar energy in Kentucky without worrying about finances with Solgen.
If you have any queries about going solar in Kentucky, feel free to contact us!