
Louisville · KY
Louisville homeowners pay $13,500–$20,500 for a typical 7 kW solar system in 2026. The federal 30% residential tax credit expired December 31, 2025; Kentucky's property tax and sales tax exemptions remain active. At Louisville Gas and Electric (LG&E)'s rate of $0.132/kWh, most systems pay back in 12–17 years.
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4.6 hrs/day
Peak Sun Hours
$950/yr
Avg. Annual Savings
12–17 yrs
Payback Period
$13,500–$20,500
Avg. System Cost
2026 update: The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025. Homeowners purchasing systems in 2026 cannot claim it. Solar leases and PPAs are the exception — the installer can still claim commercial credits and pass savings through in the monthly rate. Full 2026 ITC guide →
About Solar in Louisville
Louisville has moderate solar potential at 4.6 peak sun hours per day. Kentucky has no state income tax credit for solar, but the property tax and sales tax exemptions provide meaningful savings. LG&E's retail-rate net metering is favorable. The lack of a state credit makes Louisville a value-driven market — payback periods of 12–17 years are typical without the federal ITC.
Key solar facts for Louisville
Active Incentives
Solar installations are exempt from Kentucky property tax assessment. The added home value from solar is not taxed.
Value: Varies
Residential solar equipment is exempt from Kentucky's 6% sales tax, saving approximately $810–$1,230 on a typical system.
Value: Varies
Louisville Gas and Electric credits excess solar generation at the full retail rate. Monthly credits roll forward; unused annual credits pay out at avoided-cost rate.
Value: Varies
Net Metering in Louisville
Kentucky net metering credits excess generation at the retail rate for systems up to 30 kW. Credits roll forward monthly; unused annual credits are paid out at the avoided-cost rate.
Solar Leases & PPAs in Louisville
Solar loans and cash purchases are the most common financing options in this market. Lease/PPA availability varies by installer.
How much does solar cost in Louisville?
Detailed cost breakdown, financing options, and payback analysis for Louisville homeowners.
Want national solar cost data? How Much Do Solar Panels Cost in 2026? →
Common Questions
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Louisville Solar at a Glance
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