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#42 Solar ROI State

Solar Panel ROI in Kentucky (KY)

Kentucky averages 1,250 kWh per installed kW per year. At $11.8¢/kWh average utility rates, a 7 kW system produces a 25-year NPV of $2,061.

$13,622
System Cost (After Credits)
$2,061
25-Year NPV
14 years
Payback Period
$0.161/kWh
Solar LCOE

Solar Cost Breakdown in Kentucky

7 kW system (2.78/W)$19,460
Federal ITC (30%)-$5,838
Net Cost$13,622

Solar Production in Kentucky

Kentucky receives an average of 1,250 kWh of solar energy per installed kW per year, based on NREL PVWatts data for a south-facing system at 20° tilt. A 7 kW system produces approximately 8,750 kWh in year one, declining by 0.5% annually due to panel degradation.

At Kentucky's average residential rate of $11.8¢/kWh with 4% annual escalation, first-year savings are $1,033. The solar LCOE of $0.161/kWh is -36% below the current utility rate and stays fixed while utility rates continue to climb.

Net Metering in Kentucky

NEM phasing out — new interconnections at avoided cost rate

Solar FAQ for Kentucky

How much does solar cost in Kentucky?
A typical 7 kW residential solar system in Kentucky costs $19,460 before incentives. After the 30% federal ITC, the net cost drops to $13,622.
What is the solar payback period in Kentucky?
Based on the average KY utility rate of $11.8¢/kWh and local solar irradiance of 1,250 kWh/kW/year, a 7 kW system typically pays for itself in 14 years. The 25-year NPV is $2,061.
Does Kentucky have net metering?
NEM phasing out — new interconnections at avoided cost rate
What is the LCOE of solar in Kentucky?
The levelized cost of solar energy in Kentucky is approximately $0.161/kWh, compared to the current average utility rate of $11.8¢/kWh. Solar electricity costs -36% less than grid electricity at today's rates, and the gap widens as utility rates rise.
How much electricity does a solar panel produce in Kentucky?
Kentucky receives approximately 1,250 kWh of solar energy per installed kW per year. A 7 kW system produces about 8,750 kWh in its first year, enough to offset 83% of the average U.S. household's electricity consumption.

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Solar ROI in Similar States

Missouri

NPV: $3,503 · Payback: 13yr
Rate: $12.2¢/kWh · #34 ranked

Indiana

NPV: $4,436 · Payback: 13yr
Rate: $14.2¢/kWh · #35 ranked

Idaho

NPV: $1,451 · Payback: 15yr
Rate: $10.2¢/kWh · #36 ranked

Montana

NPV: $3,189 · Payback: 13yr
Rate: $11.8¢/kWh · #37 ranked

Arkansas

NPV: $3,007 · Payback: 14yr
Rate: $11.2¢/kWh · #38 ranked

Nebraska

NPV: $4,129 · Payback: 13yr
Rate: $11.8¢/kWh · #39 ranked

Get Your Kentucky Solar Analysis

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