Stabled stallions, ready to run
Solar Legislator Score: 
STATE LEGISLATION
Kentucky’s electric utility rates are among the lowest in the country. According to the Department of Energy, Kentucky’s electricity rates average 5.43 cents per kW hour compared to the national average of 8.90 cents per kW hour. E.ON U.S., LLC, formerly Louisville Gas & Electric, is the principal electrical energy provider in Louisville, and in 2007 won the highest J.D. Power customer satisfaction ranking in the Midwestern Region for the eighth time in the last nine years.
That’s about the extent of the good news for Kentucky’s residential electric power customers. The state has introduced very few incentives to encourage utilization of solar power and other renewable/sustainable energy sources, particularly for the benefit of homeowners. Air quality is an issue in Kentucky, and a compelling argument for a greater emphasis on solar energy systems.
STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES
State Bill 247 was enacted in Kentucky in 2004, requiring all investor-owned utilities and electric co-ops (TVA excepted) to offer Net-Metering to customers with photovoltaic solar-electric installations of 15 kW or less. A single, bi-directional meter is to be supplied by the utility; additional meters or distribution upgrades must be installed at the customer-generator’s expense. Excess power generated will be credited to the customer-generator at the utility’s normal retail rate. More on Kentucky net-metering here.
On September 30, 2007, the state legislature enacted a Sales Tax Exemption for Large Scale Renewable Energy Projects. It provides the commercial sector an exemption for 100% of sales and use taxes up to a maximum of 50% of the capital investment, and applies to solar energy systems producing at least 50 kW. The incentives also apply to wind power systems, biomass, landfill gas, hydropower, and similar resources generating at least 1 mW. There are other benefits and conditions; for further information, click here.
The Kentucky Solar Partnership (KSP) and the Mountain Association for Community Economic Development (MACED) offer a Solar Water Heater Loan Program, available to both commercial and residential users. It is a monthly installment loan program, with 5% down and a relatively low rate of interest for a fixed term of six years, covering the full equipment and installation cost. For details, click here.
The Tennessee Valley Authority (TVA) offers an interesting program through participating Green Power Switch (GPS) Generation Partners. Solar or wind power produced by residential or small commercial generators can sell 100% of their output to TVA for 15 cents per kilowatt-hour. An additional $500 incentive to help offset start-up costs is also available to residential users who qualify. This TVA website provides the particulars.
EXAMPLE RESIDENTIAL SOLAR INSTALLATION
Louisville/Jefferson County has an estimated population of about 700,000 people, excluding annual visitors to the Kentucky Derby, and just over 322,000 housing units that are exposed to plenty of sunshine; the area has a solar rating of “good”. Although utility rates are low, average electrical usage in Kentucky is a relatively high 14,328 kWh/year. To achieve a 50% net reduction in power company usage, a solar installation would require about 600 square feet of roof space and would cost approximately $54,000 (midrange estimate). Unfortunately, a $2,000 federal tax credit is the only direct offset to the cost. On the plus side:
- Estimated increase in property value – $8,200
- Estimated 25-year utility savings – $17,204
- Estimated reduction in greenhouse gas emissions – 147 tons
CONSENSUS
The obvious lack of solar incentives in the previous example highlights the need for action on the part of Kentucky’s governor and legislators. Although past and present government officials deserve kudos for whatever role they played in achieving the state’s low electric utility rates, the fact remains that most of their power comes from the burning of coal. Kentucky has fallen short in implementing renewable/sustainable energy alternatives, and needs to make this a priority.
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Are there any restrictions on who can and cannot have solar panels on their houses in terms of ordinances and such? I heard you can’t have them in certain counties, neighborhoods and cities. Is this true?
Scott,
Municipalities have their own rules when it comes to building codes. There are some neighborhoods that will not allow historic buildings to change much at all. Some owners in those areas have gone so far as to install solar flat on top of fireplace chimneys so you wouldn’t be able to detect them from the street!
Are there any grants for University\colleges that want to do solar?
John,
State grants for renewable energy are out there. I haven’t seen any in Kentucky for installation purposes. Instead, money has been for solar research and communication.
Check this out for more details.
How do we get the ball rolling in the right direction to increase residential solar tax credits?
Bob,
Last week the US House and Senate passed a law to remove the $2,000 cap from tax credits. This is huge. Further steps need to be taken though to enhance Kentucky’s standing relative to other more progressive states in the country. The best bet would be to contact your Kentucky state representative here and let them know you want better incentives.
Are there any start up grants for solar programs in residential homes in the Kentucky are
Sorry Peggy not sure… looks like Google time!
Hi, Dan I am ready to install a solar system at my home,do you Know the best place to buy a system? and Who do I contact about the hook up to the grid also about the incentives? I want to install the system right the first time!
Thanks!
I am doing a project on solar panels systems in Kentucky- in it I am proposing a way to make the solar tax incentive in KY easier to get and less loops to jump through- what do you suggest are the immediate things we could do, if such legislation were enacted?
When will cooperatives under TVA authority be required to offer net metering?
I’ve found a company that I would like to buy from but I’m not all that knowledgeable on all of the costs. The company is Solatron Technologies. Its a company out of California, so the question is, is there company here that deals with this same company cause of shipping costs?
I can’t find any intallers or distribitors in the area. If anyone else cares to join me on a quest to start our own company selling and installing solar panels, feel free to email me and we shall see what we can do.
We are recently working on solar energy in our project citizen group. I know that Kentucky is among the lowest for solar energy use in the United States but I really think that it is a problem we need to address. I think that this article is really going to help us in our project and I would like to thank you for your time writing it to share this information.
Shelby,
Please keep us updated on your progress. It means a lot to us that our article has helped inspire your group. You can do it!
- Dan
Are there no rebates or tax incentives to help a private homeowner (and customer of Kentucky Utilites) buy photovoltaic solar panels? That the state will help pay the cost of net metering after a person has figured out how to pay for the system is faint help. An estimate for getting a photovoltaic system for my home was $65000. Where is a person supposed to come up with this without help? This is about half a house!
Two questions, How far from a house can the solar panels be located? And, have you seen any larger projects to service a new development of approx. 30 homes?
i am living in europe and am moving back to the good ole USA and have been looking at the KY area. over here the government is paying up to half of the cost to install with tax credits over 10 years with a fixed rate that the electric company can charge for used power and at the same time a fixed rate that they have to pay for any eccess energy set at 20 years. the system pays for its self in 10 years and has a garentee for 25. thats incentive!!
so when i install in KY i guess i will have to foot the bill myself but do it gladly to get away from green house gases
I also want to install a PV system and get off the grid by 2012. I live in Louisville and have recently built a solar friendly home (3200 s/f)and now want to install a system. Looking for others who have used system they would recommend. Bulk pricing works for me.
Hey, Steve. Our partner, 1bog.org currently doesn’t have a bulk pricing campaign going on in Kentucky right now, but that doesn’t mean they won’t in the future, especially if Federal or State incentives improve over the next year. That could happen with a new Clean Energy bill working its way through Congress. Sign up over there, and they’ll let you know when the lay of the land improves for solar over there.
So what I understand, is that the solar power that you get, the companies take that and re-route it back to you for a price?
So you are actually paying for your own solar power?
If so, that is a real rip off.
im checking with the ky dept for energy they said all they have are rebates you pay upfront and also get a tax credit i cant afford to put solor panels in checking on grants at this time maybe Godwilling i can find something out.Good luck all will ck bk on posts im not on pc everyday bit i will be back soon .
Is solar leasing available in Kentucky? If yes, please share company names.
I’ve been watching changes in solar technology for thirty years, and always planned on installing a system. We retired a year ago, to western Kentucky, and allocated some money whaen we made the move. With TVA’s “Green Partners” incentives and the 30% tax credits from the IRS, it was time. In addition, Enphase brought to the market micro inverters that make grid tie solutions much simpler than the traditional systems, that just about anyone can purchase and install themselves. It’s tough to find all the answers, but they are out there.
I designed a 3.8KW system that we expect to offset at least half of our annual power useage. I purchased a pallet of twenty panels(cheaper that way), inverters, and rails to mount on my self-made adjustable frame, purchasing all the electrical supplies and hardware locally, and did all the installation, with the hlep of my bride, of course!).
We went on-line Dec 28 at 3:37PM and have made 144KW of power in twelve days, half that was clody and half that was bright and sunny, albeit cold! With the Enphase inverters, we also added the internet interface that allows us to see how it is performing in almost real time. So far it is awesome!. Our plan is to take all the income and add to the system a piece at a time, for the next ten years. At that time, we will have around 10KW of poer generation , enought to be self-sufficent if we so chose. Startup costs were $15,761 or $4.15/watt. Paying retail and for labor will add at least $10,000 to the cost.
You can do it too! With new advancements, prices will continue to come down, be more efficent, and there will be more dealers/installers in Kentucky. If y.ou are seriously intereted send me an e-mail to mad.merv@yahoo.com
When installing a Net Metered system, Does the utility company meter base need to be changed to a different base to accommodate the net meter? Do they change the meter type that is typical on the house so it is a model that will turn backwwards?
I have two seperate meters. One for power in and a second for power out. If your power company pays you for energy generated, you need the second meter.
We had a barn damaged by the wind the other night We are considering solar panels for the new barn roof. can you recommend a company for grants or any help? thanks susan
There is a solar panel manufacturer in Danville KY now. Alternative Energies Kentucky. We are currently manufacturing 230KW PVP panels. Just letting you know we are here. We are awaiting our final UL approval which should be here any day. We have about 22KW of panels in stock currently.
in response to Susan,you should check out solar PV laminates that are designed to be installed on metal roofs, assuming your barn has a metal roof. The prices on-line seem lower than the traditional panels. I am investigating finding a reasonable starting point to begin adding solar energy to my city home in Louisville and am very interested about how much we are allowed to do ourselves.
I bought land & home in Lewis county KY I want try solar & wind power I plan to just do it. And spend 10.000 out of our funds I know I will get 30% back the first year from taxes .
Just bought a home in Smithfield, KY and would like to use solar power, I’ve heard there are roofing manufactures making shingles with solar systems built in, anyone know about this? if so, where can they be purchased? thank you for any response
I have noticed throughout the years that there is much sun and wind in the flat country. I realy don’t understand why we dont have more solar and wind generatoen in ky.
Also our country was built on the principal of indapendence. Why dont we have more small hydro plants, especialy in the mountains?
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