Kentucky Solar Rebates

Kentucky, home to thoroughbreds and Mammoth caves, has unfortunately little to offer in the form of solar incentives. On the bright side for Kentucky homeowners, the Bluegrass State has some of the lowest electrical rates in the nation. But don't think they aren't rising along with those of the rest of the country. Despite the wealth of coal and relatively cheap electricity in the state, now is the time for Kentucky to get on board with solar and other renewables before their energy costs catch up. In April of 2008, the state legislature took some good steps in that direction by renovating their net metering rules and implementing tax credits for solar. Here is what Kentucky has to offer so far:

TAX CREDITS

Renewable Energy Tax Credit

In April of 2008, Kentucky legislators enacted a tax credit, effective January 1, 2009, for renewable energy systems, including solar space and water heat, passive solar design, and photovoltaics.
Incentives are $3.00/Watt DC for PV and 30% for all others. However, the maximum incentive for solar installations is $500.

REBATES & INCENTIVES

Tennessee Valley Authority - Green Power Switch

The TVA is not a state funded entity, but they do offer a solar incentive that spans several states in the region. The incentive includes $500 up-front plus $0.15/kWh for 10 years.
So far this is the best deal that many in the region have. The Green Power Switch program applies to PV systems. Essentially, the TVA will buy the customer-generated power from a distribution partner and pass on the credit to the consumer.

LOAN

Solar Water Heater Loan Program

The Kentucky Solar Partnership and the Mountain Association for Community Economic Development combined to offer relatively low interest loans for solar hot water systems.
The loans have six-year terms, requiring 5 percent down with a 6 percent interest rate. Loans cover 100% of equipment and installation costs.

NET METERING

Kentucky recently updated its net metering regulations to include solar and other renewable resources. PV systems up to 30kW qualify. The law applies to all investor-owned utilities (IOU) and rural electrical cooperatives.
Net excess generation (NEG) is carried over to the customer's next monthly bill, with no apparent expiration.
Tennessee Valley Authority partners are exempt from net metering rules. Although TVA does have its own solar incentives in place (see above).

Recent activity in the Kentucky legislature is a good sign. Yet more needs to be done. Historically, tax exemptions and other incentives have favored only large-scale solar installations. The soon-to-activate tax credits are a start, although the $500 cap does not make much of a dent in initial costs for homeowners – the biggest obstacle most people must overcome. But at least Kentucky is moving in the solar direction...if only we could get them to quicken their step.

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