Solar advice for Kentucky homeowners, before you sign anything

Solar advice for Kentucky homeowners in 2026

If you’re a Kentucky homeowner looking for solar advice this year, you’re deciding under different rules than a neighbor who installed in 2023. The 30% federal credit for homeowner-owned systems (Section 25D) ended for expenditures after December 31, 2025. Kentucky’s largest utilities credit exported power at less than they charge for imported power. And the person across your kitchen table is more likely to offer a lease or a power purchase agreement than a cash sale.

Is solar still worth it? For some homes, yes. For many, the proposal in hand isn’t the best version of the deal. We’re fee-only: we don’t sell panels, we don’t install, and we take no commissions. We work for you and tell you what the numbers say.

The number most proposals skip

A kilowatt-hour your panels make while the house is using power never reaches the meter, so it avoids the full per-kWh charges on your bill. A kilowatt-hour you send to the grid earns a credit instead. For new LG&E and KU customers on NMS-2, the PSC’s February 2026 rate order kept that credit at about 7.1 cents (LG&E) and 7.5 cents (KU) per exported kWh, even as base rates went up.

So two homes with identical systems can see very different savings. A family with a home office uses more solar on site than a couple who are out from 7 a.m. to 6 p.m. Ask the installer what self-consumption share they assumed. If the proposal doesn’t say, assume it was generous.

Kentucky Power and Duke Energy Kentucky have also moved new customers to lower export credits. Co-ops set their own terms through the PSC, and TVA-served distributors fall outside the state net metering law altogether.

Leases, PPAs, and the credit you can’t claim

Third-party owners can still claim the commercial 48E credit on residential systems they own, subject to a placed-in-service deadline and foreign-sourcing rules. That’s one reason leases and PPAs became a larger share of residential offers. A lease can be a fair deal. Check three things:

• The escalator. A 2.9% annual increase sounds small. Over 25 years it roughly doubles the payment.
• The exit. What does a buyout cost in year 7, and what happens when you sell the house?
• The calendar. If the company’s credit depends on finishing by the end of 2027, ask what happens to your price if installation slips.

Our ownership comparison tool lays these side by side. For tax questions, talk to a tax professional; we don’t give tax advice.

Roof age, house sales, and legacy terms

A 15-year-old shingle roof will likely need replacing under a 25-year system, and removing and reinstalling panels costs real money.

Buying a house that already has solar? Ask which net metering tariff it’s on. Under Kentucky law, systems in service before the utility’s first net metering order under the 2019 law keep their original terms at that address for 25 years, even after a sale. Excess bill credits carry forward month to month, but they don’t move to another address and aren’t refunded in cash when you close the account.

When the installer is gone

If your monitoring app went dark or your lease changed hands, our System Health Check restores data access where possible, compares production with an expected baseline, and organizes warranty paperwork. Theo Okafor, who leads that work, ends every report with questions to ask a qualified technician.

Where to start

Holding a quote? Start with a Proposal Second Opinion. Still deciding whether your house is a candidate? Book a Solar Readiness Consultation. Curious about a battery? See Battery & Storage Economics.