Key takeaways
- Nobody offers free solar panels in Kentucky. We found no company selling home solar leases or PPAs, and PPAs are listed as apparently disallowed.
- Zero-down solar in Kentucky means a loan. You own the panels and pay the full price, about $20,591 for a typical system, with no federal tax credit.
- Kentucky Solar for All never opened. The $62.45 million federal award was cancelled in 2025, and no application exists today.
- Your utility sets what solar is worth. Power you send out earns 7.089 cents per kWh at LG&E, 7.534 cents per kWh at KU and 7.4805 cents per kWh at Duke Energy Kentucky.
- The 2028 date is about base rates. LG&E and KU base rates hold until August 1, 2028. The solar credit has no lock.
About this review
We checked each Kentucky figure against the tariff, order or agency source listed at the end. Tariffs and orders were read September 29 to October 1, 2026; Solar for All and the lease and PPA rules on October 5, 2026. This page is not tax, legal or financial advice.
How we choose sources and fix errors: editorial process and content standards.
A solar lease mostly sells certainty: one set monthly payment instead of a bill that moves, often with a yearly increase (an escalator) that makes page one the lowest payment you will see. In Kentucky the question barely comes up. No company sells leases here, so a “free solar panels” ad is a national ad that does not apply, or a loan called free.
Kentucky homeowners do have some certainty without signing anything. On February 16, 2026 the Public Service Commission (PSC), the state’s utility regulator, approved a settlement that keeps new Louisville Gas and Electric (LG&E) and Kentucky Utilities (KU) base rates from taking effect before August 1, 2028. It is a real date, and narrower than “rates are locked”.
Kentucky Solar for All: the program that never reached households
The U.S. Environmental Protection Agency (EPA) awarded Kentucky $62.45 million for low-income solar, to be run by the Kentucky Office of Energy Policy. EPA cancelled it in August 2025, before any household was served. Federal courts ruled that cancellation unlawful in September 2026, and EPA was weighing an appeal as of October 1. As of October 5, 2026, the state had posted no restart or application.
No Lease Company, and Less Need for One
Elsewhere, “free solar” means a company owns the panels on your roof. In a lease you pay a set monthly fee. In a power purchase agreement (PPA) you pay for each kilowatt-hour (kWh) the panels make. Three things stand in the way of both.
- State law. DSIRE’s May 2026 map lists third-party solar PPAs in Kentucky as “apparently disallowed by state or otherwise restricted by legal barriers” (KRS 278.010(3)). Unlike some southern states, Kentucky is not marked as allowing leases.
- Utility rules. Every utility solar tariff (official price sheet) we read says the customer must own and operate the system.
- The market. We found no company offering home solar leases or PPAs here on October 5, 2026. Sunrun, a large national seller of both, does not list Kentucky.
Kentucky solar still gets built: homeowners buy it, with cash or a loan. Ask any zero-down seller who will own the panels. Here the honest answer is “you, with a loan”. For states that allow leases, see free solar programs nationwide.
Zero-Down Solar in Kentucky: A Loan You Hold, or a Utility Subscription
Kentucky has no rebate and no state income tax credit for home solar (the 2025 schedule lists 24 credits, none for solar). The federal credit ended for systems finished after December 31, 2025. So the question is simply how you pay the full price, and what the panels earn back on your bill.
| Route | Available in Kentucky? | Panels on your roof? | What you pay |
|---|---|---|---|
| Zero-down solar loan | Yes, through installers and lenders | Yes, and you own them | Loan payments on the full price, about $2.65 per watt |
Pros and cons in Kentucky: zero-down loanPros
Cons
Can fit if: the payment is below what the panels save at your utility’s rates, with no tax credit assumed. | |||
| Solar lease or PPA | No provider found, and PPAs are apparently disallowed | Would be, owned by a company | Not offered here |
Pros and cons in Kentucky: lease or PPAPros
Cons
Can fit if: a seller shows a Kentucky contract and your utility’s written approval. We have not seen one. | |||
| LG&E and KU Solar Share, monthly | Yes, for LG&E and KU customers | No, a share of a utility solar farm | $5.55 a month per share of 250 watts |
Pros and cons in Kentucky: Solar SharePros
Cons
Can fit if: you want local solar and accept it may cost more than it saves. | |||
No lease-versus-PPA comparison here: Kentucky has neither for sale. Some co-ops sell solar farm panel licenses, such as Shelby Energy’s at $460 per panel, paid once. For loan terms and APRs, see our solar financing guide.
What the 2028 Date Does and Does Not Give You
“Kentucky solar rates are locked until 2028” is a line salespeople stretch, and our earlier version of this page stretched it too. The PSC orders of February 16, 2026 (Cases 2025-00113 and 2025-00114) say less.
- What is dated: new LG&E and KU base rates, the main prices on your bill, cannot take effect before August 1, 2028.
- What the orders kept: the solar credits, set on August 30, 2024, at their current level, open to new customers until new rates from the next rate cases.
- What is not promised: the credit amount. It has no end date, and the PSC told KU to file updated cost figures for it.
- The state cap: a utility may stop taking new customers once net-metered systems reach 1% of its peak demand.
Still, LG&E and KU households can price a system against base rates that will not move for almost two years, more than many states offer. The settlement does not cover Duke, Kentucky Power or co-ops.
LG&E, KU, Duke, Kentucky Power, TVA or a Co-op: Which Kentucky Are You In?
With no lease market, your utility decides what an owned system is worth. Since January 1, 2020, net metering has paid a dollar bill credit for power you send to the grid, at a rate the PSC sets per utility, for owned systems up to 45 kW. Power you use at home is worth more.
| Your utility | Credit for power sent out | 100 kWh sent out earns | 100 kWh used at home saves |
|---|---|---|---|
| LG&ELouisville area | 7.089 cents per kWh | $7.09 | $11.50 |
| KULexington and many other counties | 7.534 cents per kWh | $7.53 | $11.40 |
| Duke Energy KentuckyNorthern Kentucky; credit raised on July 10, 2026 | 7.4805 cents per kWh | $7.48 | $12.61 |
| Kentucky PowerEastern Kentucky; only the surplus earns the credit | 9.746 cents per kWh | $9.75 | 15.385 cents per kWh for the first 600 kWh |
| Co-op or city utilityIncluding TVA-supplied co-ops | Set by each one | Ask in writing | Ask in writing |
Home-use savings are base energy charges before fuel and other adjustments (LG&E and KU from September 1, 2026). Kentucky Power nets exports against use in each billing period and credits only the surplus. Duke must update its credit every two years from 2028. Fixed charges such as Duke’s $14.75 a month stay on every bill.
Co-ops differ most. Kenergy and Owen Electric still swap one kWh sent out for one kWh used later. Co-ops supplied by the Tennessee Valley Authority (TVA), such as Warren RECC and Pennyrile Electric, and city utilities set their own terms, which we could not confirm. A co-op quote built on the LG&E or KU credit is wrong.
Buying a House With Panels: The Class of 2021
Older systems keep a better rule, one kWh used later for each kWh sent out. It stays with the house until a fixed calendar date, not for a period counted from each start:
- LG&E and KU: systems in service before September 24, 2021 keep it until September 24, 2046.
- Kentucky Power: systems in service before May 15, 2021 keep it until May 14, 2046.
- Duke Energy Kentucky: customers who started before January 1, 2025 keep it until January 1, 2050.
Get the rule from the utility in writing, not from the seller. Banked credits do not pass to you, and a much larger system moves to the newer rule.
You Likely Will Not Qualify If
- You are answering a national free solar ad. We found no lease or PPA seller in Kentucky.
- You expect a rebate or tax credit. Kentucky has none for home solar, and the federal credit ended for systems finished after December 31, 2025.
- You are waiting for Kentucky Solar for All. It never opened to households, and no restart has been posted.
- You hoped to join the old one-for-one rule. It closed to new LG&E and KU systems on September 24, 2021 and cannot be reopened.
Check a Kentucky Solar Quote in Six Questions
- Who will own the panels?
In Kentucky it should be you. Any other owner needs your utility’s written approval.
- Which utility did the quote use?
Make the installer name it and the credit it modeled.
- How much of the output did it assume you use at home?
That share earns the full energy charge; exports earn less.
- Does the loan assume a tax credit?
A loan that expects a lump-sum payment from the federal credit is built on money you will not get.
- How does the price compare?
See what solar costs in Kentucky, about $2.65 per watt.
- What does “locked” mean in the pitch?
Only LG&E and KU base rates are dated, to August 1, 2028. The solar credit is not locked.
Stop if a seller offers free panels from a government program, says your credit is guaranteed until 2028, or wants a signature today.
Learn the solar scam warning signs and compare bidders in our Kentucky solar companies guide.
Price an Owned Kentucky System Before You Borrow
Ask each installer for the cash price, the loan payment, your utility’s credit and the share of output it expects you to use at home. In Kentucky, those four numbers are the decision.
Enter your ZIP code to price an owned system and a zero-down loan
This is a commercial quote request, not a Kentucky Solar for All or utility application. Installer and loan availability depend on your ZIP code and your home.
How EcoGen is paid
EcoGen America does not sell or install solar. When you request quotes, we pass your request to solar providers serving your area, and they pay us for the introduction. Providers can include installers, solar marketplaces and lead exchanges, and more than one may contact you. You never pay us.
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More Kentucky Solar Guides
Kentucky Solar FAQs
Can I get free solar panels in Kentucky?
No. Free solar means a company owns the panels through a lease or PPA, and we found no one offering either here. Kentucky Solar for All never opened to households.
Can I get zero-down solar in Kentucky?
Yes, with a no-money-down solar loan. You own the system and finance the full price, about $20,591 for a typical 7.77 kW system, with no rebate or tax credit. LG&E and KU customers can also subscribe to Solar Share, a paid utility subscription.
Are Kentucky solar rates locked until 2028?
Only LG&E and KU base rates, until August 1, 2028. The solar credit was kept at its current level but has no end date, and the PSC can change it in a later case.
What does Kentucky pay for exported solar?
A bill credit set by the PSC for each utility: 7.089 cents per kWh at LG&E, 7.534 cents per kWh at KU, 7.4805 cents per kWh at Duke Energy Kentucky and 9.746 cents per kWh on surplus power at Kentucky Power. Credits carry forward and are never paid in cash.
Is there any cash incentive for Kentucky solar?
No. Kentucky has no rebate or state tax credit for home solar, and the federal credit ended for systems finished after December 31, 2025. What you get is the bill credit, plus base-rate stability at LG&E and KU until August 1, 2028.
I am buying a Kentucky house with solar. What should I check?
When net metering began, confirmed by the utility. LG&E and KU systems in service before September 24, 2021 keep one-for-one kWh credits until September 24, 2046, worth more than a new system’s dollar credit.
Sources and review
Checked September 29 to October 5, 2026. Rules change; the utility’s or agency’s current page always wins.
- Kentucky Utilities, electric tariff P.S.C. No. 21: Rate RS, Riders NMS-1, NMS-2 and Solar Share (checked October 1, 2026)
- Louisville Gas and Electric, electric tariff P.S.C. Electric No. 14: Rate RS and Rider NMS-2 (checked October 1, 2026)
- Kentucky Public Service Commission, order of February 16, 2026 in Case No. 2025-00113, Kentucky Utilities rate case (checked September 30, 2026)
- Duke Energy Kentucky, tariff KY P.S.C. Electric No. 2: Rate RS, Riders NM I and NM II (checked October 1, 2026)
- Kentucky Power, tariff P.S.C. Ky. No. 14: Tariff R.S., Tariff N.M.S. and Tariff N.M.S. II (checked October 1, 2026)
- Kenergy Corp., tariff Schedule 46, Net Metering (checked October 1, 2026)
- Shelby Energy Cooperative, Cooperative Solar (checked September 30, 2026)
- Kentucky Revised Statutes 278.465 to 278.468, net metering (checked September 30, 2026 through the incentives database)
- Kentucky Department of Revenue, Schedule ITC, Kentucky individual tax credit schedule, 2025 (checked September 30, 2026)
- IRS, Residential Clean Energy Credit (checked September 29, 2026)
- LG&E and KU, Solar Share (checked September 30, 2026)
- DSIRE / NC Clean Energy Technology Center, 3rd Party Solar PV Power Purchase Agreement map, May 2026 (Kentucky: KRS 278.010(3))
- U.S. EPA, Kentucky to receive $62,450,000 to deliver residential solar (April 22, 2024)
- Kentucky Energy and Environment Cabinet, Energy programs and Solar for All FAQ
- pv magazine USA, court strikes down EPA cancellation of Solar for All (September 21, 2026)
- Sunrun, Solar by state
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