Solar Incentives in Nicholasville, KY
Complete guide to solar tax credits, rebates, and incentive programs available to Nicholasville homeowners in 2026.
Federal Solar Investment Tax Credit (ITC)
30% of total system cost
Nicholasville homeowners can deduct 30% of the cost of installing a solar energy system from their federal taxes. This applies to all qualified solar installations in Nicholasville, KY.
Kentucky State Solar Incentives for Nicholasville Homeowners
Net Metering
Net MeteringKentucky net metering allows solar customers to receive credits for excess electricity generation at the retail rate.
Net Metering in Nicholasville, KY
Kentucky requires utilities to offer net metering for residential systems. However, recent policy discussions may change the compensation structure in coming years.
Solar Renewable Energy Credits (SRECs) in Nicholasville
Kentucky does not have an SREC market or renewable portfolio standard requiring solar energy.
Tax Exemptions in Nicholasville
How to Claim Solar Incentives in Nicholasville
- Install your solar system: Work with a qualified Nicholasville solar installer to design and install your system.
- Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
- Apply for state programs: Contact your Kentucky energy office or local Nicholasville utility to apply for available incentives.
- Set up net metering: Contact your utility in Nicholasville to set up net metering and start earning credits.
- Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.
Solar Incentives FAQ - Nicholasville, KY
Nicholasville homeowners can take advantage of the 30% federal solar tax credit, plus 1 state-level incentive programs, net metering. These incentives can reduce your total solar cost by 30-50%.
The 30% federal tax credit alone can save Nicholasville homeowners approximately $5.0k on a typical system. Combined with Kentucky state programs, total savings over 25 years can reach $24k or more.
Kentucky requires utilities to offer net metering for residential systems. However, recent policy discussions may change the compensation structure in coming years.
To claim the 30% federal ITC, Nicholasville homeowners need to file IRS Form 5695 with their annual tax return. The credit applies to the full cost of your solar system including equipment and installation. You must own the system (not lease it) to claim the credit.
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