Kentucky offers modest solar economics with coal-dependent utilities and limited state incentives affecting solar adoption.
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Kentucky presents moderate solar challenges: With 12¢/kWh electricity rates and 4.2 daily peak sun hours, the Bluegrass State offers reasonable solar conditions. LG&E and other utilities provide net metering, though coal dependence affects renewable energy policies.
For Louisville and Lexington residents, solar systems typically pay for themselves in 10-12 years. Limited state incentives mean returns depend primarily on federal tax credits and utility net metering.
| Incentive | Amount | Status |
|---|---|---|
| Federal ITC | 30% of system cost | Active |
| LG&E Net Metering | Full retail rate | Active |
| Property Tax Exemption | Not available | None |
| Sales Tax Exemption | Not available | None |
| System size | Gross cost | After ITC | Annual savings | Payback |
|---|---|---|---|---|
| 6 kW | $17,100 | $11,970 | ~$1,020/yr | ~11.7 years |
| 8 kW | $22,800 | $15,960 | ~$1,360/yr | ~11.7 years |