Discover the Power of Solar Energy in Kentucky!
Welcome to Kentucky, a state famed for its lush bluegrass fields, rich historical heritage, and now, its evolving role in the solar energy landscape. With a climate that generously offers a mix of sunny and partly sunny days, Kentucky presents an inviting opportunity for the adoption of solar power. This potential aligns perfectly with homeowners and businesses interested in tapping into clean, renewable energy, contributing to the state?s environmental goals and energy independence. Supported by encouraging incentives aimed at easing the financial aspect of solar installations and a community spirit that leans towards preserving the natural beauty of the Bluegrass State, Kentucky is steadily advancing towards a solar-powered future. Learn how leveraging Kentucky?s solar resources can brighten your home, reduce your energy footprint, and aid in sustaining the state?s picturesque environment. Join us in embracing the sun?s boundless energy and stepping into a brighter, more sustainable future in Kentucky.
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Kentucky State Solar Incentives
Sales Tax Exemption - Machinery for New and Expanded Industry
Kentucky offers tax exemptions for new machinery involved in the production of solar energy for sale, excluding non-production components.
On-Farm Energy Efficiency Grant Program
The County Agricultural Investment Program offers grants for farms incorporating energy efficiency. Eligible projects include equipment upgrades, efficient lighting, insulation, and more.
Energy Efficiency Loans for State Government Agencies
The Green Bank of Kentucky offers three energy loan products to state agencies for energy conservation projects. Funding is provided by the ARRA through the Kentucky State Energy Program.
Interconnection Standards
Kentucky's 2008 legislation mandates Public Service Commission to develop interconnection and net metering guidelines for electric suppliers, simplifying the interconnection process.
Tax Exemption for Large-Scale Renewable Energy Projects
Kentucky's Incentives for Energy Independence Act (IEIA) encourages renewable energy development through incentives for companies building or renovating renewable energy facilities.
Incentives for Energy Independence
Kentucky's Incentives for Energy Independence Act encourages renewable energy use and energy efficiency by offering various incentives, including tax credits and wage assessments.
Net Metering
Kentucky Public Service Commission set monthly net metering rates and export credit rates for Kentucky Power Company, KU, and LGE following the 2021 general rate case.
Kentucky Solar Easements Laws
Kentucky's legal framework supports solar energy use via solar easements, ensuring unobstructed sunlight access for efficient system operation.
Federal Solar Incentives
USDA - Rural Energy for America Program (REAP) Grants
REAP, administered by USDA, provides financial aid to small rural businesses and agricultural producers for sustainable energy projects. Grants cover 25% of the project cost, up to $25 million.
Interconnection Standards for Small Generators
New FERC order mandates small generators under 20 MW to maintain operation during abnormal frequency and voltage events, enhancing interconnection efficiency.
USDA - Rural Energy for America Program (REAP) Loan Guarantees
The Rural Energy for America Program (REAP) supports agricultural producers and rural businesses in the US by providing financial aid for renewable energy projects and energy efficiency improvements.
Clean Renewable Energy Bonds (CREBs)
Clean Renewable Energy Bonds (CREBs) were used by public entities to fund renewable energy projects. They were repealed in 2017.
Qualified Energy Conservation Bonds (QECBs)
Qualified Energy Conservation Bonds (QECBs) financed energy projects by local governments. Discontinued in 2018, they offered tax credits as interest to bondholders.
Office of Indian Energy Policy and Programs - Funding Opportunities
The DOE's Office of Indian Energy Policy and Programs aids tribes in attaining energy self-sufficiency and economic growth through renewable energy and energy efficiency technologies.
Fannie Mae Green Financing – Loan Program
Fannie Mae's Green Financing offers loans for multifamily properties aiming for energy and water efficiency improvements. Eligible properties can access favorable rates and additional loan proceeds.
Energy-Efficient Mortgages
Energy efficient mortgages (EEM) allow homeowners to finance energy-saving renovations or purchase new energy-efficient homes. These loans, insured by the U.S. government, aim to promote energy efficiency.
Green Power Purchasing Goal for Federal Government
The Energy Policy Act of 2005 set a goal for federal buildings to use 7.5% renewable energy by 2013. This target was increased to 30% by 2025 but later rescinded in 2018.
USDA - High Energy Cost Grant Program
USDA's grant program, enhancing energy generation in rural areas, concluded its latest application period on July 6, 2021. Updates can be found on the program website.
Residential Energy Conservation Subsidy Exclusion (Personal)
US law exempts energy conservation subsidies provided by utilities from taxation but requires adjustments for federal tax credits. IRS guidance on solar rebates is unclear.
Residential Renewable Energy Tax Credit
H.R. 5376 extends tax credit for energy storage systems and excludes biomass heaters, with credit amounts varying by technology type and installation date.
U.S. Department of Energy - Loan Guarantee Program
The Inflation Reduction Act has allocated $11.7 billion to the LPO for new loans, boosting loan authority by $100 billion, and setting up the Energy Infrastructure Reinvestment Program.
Business Energy Investment Tax Credit (ITC)
The Inflation Reduction Act of 2022 updates the federal Business Energy Investment Tax Credit, introducing new eligibility criteria, bonus credits, and transitions the tax credit to a new section.
Renewable Electricity Production Tax Credit (PTC)
The Inflation Reduction Act of 2022 introduces changes to the federal renewable electricity production tax credit, introducing new bonus credits and eligibility criteria.
Residential Energy Conservation Subsidy Exclusion (Corporate)
U.S. energy conservation subsidies provided by public utilities are tax-exempt, but this does not extend to certain electricity-generating systems. Tax credits can't be claimed for unsubsidized expenses.
Modified Accelerated Cost-Recovery System (MACRS)
The Tax Cuts and Jobs Act of 2017 allows 100% depreciation for qualified assets, impacting renewable energy technologies. MACRS classifies these technologies for depreciation purposes.
Energy and Emissions Goals and Standards for Federal Government
President Biden's Executive Order 14057 sets ambitious sustainability goals for the US, including 100% carbon-free electricity by 2030 and a fully zero-emission federal fleet by 2035.
