Solar in Oregon is Easier to Obtain than Before
February 1, 2023
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.
Tax Credits & Government Incentives for Solar in Kentucky
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.
Federal Government Incentives
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.
Kentucky Incentives
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:
- The Kentucky Property-Assessed Clean Energy (PACE) Financing is currently available for small businesses and larger commercial customers. It keeps initial and ongoing costs to a minimum.
- Kentucky Incentives for Energy Independence credits income tax to commercial customers who don’t use energy from fossil fuels.
- Net Metering credits you for producing access energy. However, the State doesn’t set the buyback rates, so check with your provider for the exact numbers.
Easy and Affordable Installation Process
The Installation Process
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 Price of Solar in Kentucky
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.
What Makes Kentucky Good for Converting to Solar Power?
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:
- The costs for solar equipment in Kentucky are lower than in many areas in the US, and the cost per watt is also really low. Hence, the barrier to entry is low for everyone.
- Kentuckians consume an average of 1,073 kWh of energy, which is significantly higher than the national average of 893 kWh. The more energy consumption, the higher the savings after converting to solar.
- Kentucky has some incentives for those converting to solar, which help keep the costs in check. • Kentucky is prone to frequent natural disasters, such as floods, hurricanes, and thunderstorms, so installing solar makes a lot of sense.
Long-term Savings on Energy Costs
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.
Solar Savings 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.
Positive Environmental Impact
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:
Reduced Carbon Emissions
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.
Reduced Water Pollution
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.
Greenhouse Gas Reduction
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.
Ecosystem Protection
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.
Wide Range of Benets
Solar energy in Kentucky provides a wide range of benets for both homeowners and businesses, such as the following;
Energy Independence
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.
Increased Property Value
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.
Affordable Electricity
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.
Conclusion
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!
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Solgen Power is a solar energy equipment company that sells and installs solar for homeowners. Solgen Power has been recognized by INC. 5000 as one of the fastest growing companies in the nation. Solgen Power has grown nationwide and continues to provide excellent customer service to homeowners.