Benefits of Solar Energy
Solar energy has numerous advantages that will enhance your home for years to come.
- Reduced carbon footprint: Solar is one of the universe's most abundant clean energy sources, meaning you can lower or beat your home's dependence on non-renewable sources.
- Better energy independence: Adding a battery storage system lets you have reliable energy during grid outages and storms.
- Lowered energy bills: Solar panels allow you to generate your own energy to power your home, lowering your periodic electricity costs. Going off-grid can eliminate your bills completely. Plus, a significant number of states offer net metering, which permit you to earn money by selling your unused energy back to the grid.
What Solar Incentives Are Available to Lexington-Fayette Homeowners?
Kentucky homeowners who choose solar could qualify for special financing, tax credits, reimbursements and rebates. Here are just a few of the local incentive offerings.
Incentive Type: Rebate Program
Website: clarkenergy.comIncentive Amount:
Heat Pump Retrofit: Up to $750
Air Sealing/Ceiling Insulation: Up to $750
SimpleSaver Program: $20/yr/air conditioner enrolled
ENERGY STAR Manufactured Home: Varies, contact utility for more information
CARES Program: Up to $2,000/household
Incentive Type: Personal Tax Credit
Website: ecowatch.comIncentive Amount:
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Lexington-Fayette
The cost and efficiency of solar panels often hinge on the provider that mounted them. Here are some essential aspects to bear in mind while shopping for a solar company.
Licensing and Training
Residential solar energy contractors in Kentucky don't have to be licensed electricians or plumbers. However, a plumber or electrician licensed by the Commonwealth must be the one to retain building permits and connect the system to meters and utility grids. Look for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), among the solar sector's most credible trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Lexington-Fayette
The type of solar panels you purchase decides how much energy you can generate. Monocrystalline panels and high-quality and cost more but give you the best performance. Polycrystalline panels produce less power, but they're worth it if you want a traditional panel style without the high cost. Thin-film panels aren't the best for large residential installations, but they are excellent accessories for non-traditional roofs.
You can also add battery backups and electric vehicle (EV) chargers. These will increase your total installation cost, but they can boost your solar system's performance. Not all solar providers provide these add-ons, so look for a provider that sells them if it's important for you.
You can expect to pay about $18,250 on average for a five-kilowatt solar energy system in Lexington-Fayette. Use the table in this section to get an idea of what amount Lexington-Fayette solar companies might quote for your specific solar system's price.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,129 |
| Solar Polycrystalline | $881 |
| Thin-Film | $515 |
| Solar Battery | $723 |
| Solar Home EV Charger | $2,710 |
Financing Solar Energy in Lexington-Fayette
Choosing the best financing plan will influence your overall solar system cost and potential savings. Common payment options include leases, loans, cash payments, and power purchase agreements. We recommend making a cash payment or securing a solar loan for the highest return on investment (ROI). Cash payments require a hefty sum up-front, but you’ll pay the least long-term by avoiding interest. You’ll also have full ownership of your system and can apply for solar panel incentives to reduce your total costs. Solar loans are another good option if you don’t want to make a big initial investment. You can pay for your system in installments while still enjoying energy bill savings and solar incentives. However, you’ll spend more in total due to accruing interest. Solar leases allow you to pay a monthly rate to rent your panels, while a PPA lets you pay a fluctuating rate based on only the energy you use. We generally advise against these options since you will not have ownership of your system and are disqualified from solar incentives, but they might be suitable in particular circumstances. Ask each company you're evaluating about the payment plans it offers. A team member can help you determine the optimal option for your financial situation.
The table below lists the average payback periods for different capacities of solar systems in Lexington-Fayette.
You are eligible for a 26% federal solar tax credit for new solar power systems until the year 2032. City and state officials and utility companies might also offer discounts, rebates, and specialized financing options that could save you more.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 2.3 years |
| 2 kW | 4.6 years |
| 5 kW | 11.4 years |
| 10 kW | 22.9 years |
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Frequently Asked Questions About Solar in Lexington-Fayette
How much energy and money could I save per year by switching to solar?
Is solar energy widely available in Lexington-Fayette?
Will solar panels raise my Lexington-Fayette home value?
Is solar installation a quick job?
What's the average solar system size in Lexington-Fayette?
What is the average payback period for Lexington-Fayette solar panels?
How does "net metering" work, and do I need to participate?
Some states or utilities require you to enroll in net metering when purchasing your solar system, while others give you a choice. Either way, once you sign up, you'll get a bill credit or check for your excess generation at a retail or wholesale rate.
What's the difference between a PPA and traditional financing?
In contrast, solar loans can come from the government, local banks, installer and specialty lenders. You'll need to pass a credit check to qualify for most of them. While the upfront costs are larger, and you'll be responsible for upkeep, you'll also have full ownership rights and can apply for many more benefits.
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