Kentucky · Net metering

KY Net Metering

Sets the billing terms for excess solar generation sent back to the grid by residential customers in Kentucky -- see the credit rate and how it shapes payback below.

Avoided cost rate
stated benefit
Residential
eligible customers
17.7 yr
Kentucky baseline payback
2
other Kentucky programs

What it means

In Kentucky, a 6 kW system already pays back in about 17.7 years on ~$930/year of modeled savings, and the KY Net Metering stacks on top of that, on top of any federal credit.

Avoided cost r…
stated benefit
17.7 yr
baseline payback (pre-incentive)
3
Kentucky programs that stack
full
net-metering policy

Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.

Program description

Kentucky provides net metering at avoided cost rate for systems up to 30 kW.

Program at a glance

Program type
Net metering
Eligible customers
Residential
Stated benefit
Avoided cost rate
State electricity rate
11.8¢/kWh
Kentucky solar score
21/100

How Kentucky compares to the U.S. average

Why this incentive matters more (or less) here - Kentucky's solar fundamentals against the national average.

Irradiance
Kentucky: 4.5 kWh/m²/day
U.S. avg: 4.82 kWh/m²/day
Electricity rate
Kentucky: 11.8¢/kWh
U.S. avg: 15.98¢/kWh
Modeled payback
Kentucky: 17.7 yr
U.S. avg: 14.2 yr

Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.

Solar's trajectory in Kentucky

The market this incentive operates in: total installed solar capacity in Kentucky reported to the EIA.

-100 MW0 MW100 MW200 MW300 MW400 MW500 MW 201620172018201920202021202220232024 430 MW
Kentucky now has about 430 MW of installed solar, the backdrop programs like this one are built on.

Source: U.S. Energy Information Administration, installed solar nameplate capacity As of 2024

Kentucky's solar incentive stack

How this net metering sits among Kentucky's 2 tracked programs, by type

programs

What this shows Kentucky tracks 2 incentive types; net metering (1 program) governs the billing side, while the state's other tracked types handle upfront cost or ongoing payments.

Source DSIRE incentives registry As of 2024

How this incentive fits Kentucky's solar picture

The KY Net Metering governs how Kentucky credits excess solar generation sent back to the grid, one of the state's DSIRE-tracked solar policies. Eligibility is scoped to residential customers, with a stated benefit of Avoided cost rate. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.

That baseline is slower than most states, which raises the stakes for every incentive on the table. Kentucky averages 4.5 kWh/m²/day of usable sunlight and residential rates of 11.8¢/kWh, producing an estimated 7,884 kWh/year and $930 of annual utility offset on a typical 6 kW system costing $16,500. That baseline already implies a 17.7-year simple payback and a 25-year modeled net of roughly $6,750 before this incentive - every dollar this net metering delivers compresses that payback further.

A handful of other levers are worth checking alongside this one. Kentucky has 3 solar incentive programs indexed in DSIRE, including adjacent options like KY Renewable Energy Tax Credit. The state's net-metering policy is classified as full, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.

Your next step

  • See Kentucky's full solar profile, score, irradiance, rates, payback, and every program you can claim. Kentucky solar data
  • Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
  • See how net-metering credits are valued state by state. Net-metering guide

Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.

Frequently asked questions

What is the KY Net Metering?
The KY Net Metering is a net metering available to residential solar customers in Kentucky. The stated benefit is Avoided cost rate.
How does the KY Net Metering work?
Kentucky provides net metering at avoided cost rate for systems up to 30 kW.
Who is eligible for the KY Net Metering?
The program is available to residential customers in Kentucky. Check the official program page for current eligibility requirements and deadlines.
How does this incentive affect solar ROI in Kentucky?
Kentucky has an estimated 17.7-year payback for a 6 kW system before incentives, with about $930/year in modeled savings. A net metering like this lowers upfront cost or raises annual return, shortening that payback. Run the calculator for a figure based on your own bill.
Are there other solar incentives in Kentucky?
Yes - Kentucky has 3 solar incentive programs tracked in DSIRE, including KY Renewable Energy Tax Credit. State programs are designed to stack on top of any available federal solar tax credit rather than replace it.

Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology.