Solar in Kentucky

Solar Landscape in Kentucky

Kentucky's utility landscape is divided between investor-owned utilities (IOUs) regulated by the Kentucky Public Service Commission and TVA distributors in the western and eastern parts of the state. Louisville Gas & Electric (LG&E) and Kentucky Utilities (KU), both PPL Corporation subsidiaries, are the two largest utilities, together serving approximately 1 million customers. Both currently offer full retail net metering (NMS-1) — making them among the best net metering options in the Southeast.

Duke Energy Kentucky serves the northern Kentucky/Cincinnati metro area and transitioned to avoided cost net metering (NMS-2) in January 2025. Kentucky Power (AEP subsidiary) serves eastern Kentucky with reduced credits at approximately $0.09/kWh. Several western Kentucky areas are served by TVA distributors that are not required to offer net metering.

Permitting

Kentucky has no statewide solar permitting standards. Permitting is handled at the local level by city and county building departments, with requirements varying across the state.

No Kentucky jurisdictions currently participate in the DOE's SolarAPP+ automated permitting program. Typical residential solar permit timelines range from 1 to 3 weeks. Larger cities like Louisville, Lexington, and Bowling Green generally have more experience with solar permitting.

The eastern portion of the state and some western areas fall within TVA territory, where different utility requirements apply. TVA distributors (Gibson, Pennyrile, Tri-County, Warren, West Kentucky) are not required to offer net metering.

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