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.
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.
Kentucky's solar incentive stack
How this net metering sits among Kentucky's 2 tracked programs, by type
- Net metering
Net metering
1 programs
- Tax credit
Tax credit
1 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.
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.
Other Kentucky incentives
Frequently asked questions
What is the KY Net Metering?
How does the KY Net Metering work?
Who is eligible for the KY Net Metering?
How does this incentive affect solar ROI in Kentucky?
Are there other solar incentives in Kentucky?
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.