Kentucky Energy Rebates & Tax Credits

11 state-level programs plus 15 federal programs available to Kentucky residents.

Key Takeaways

Kentucky offers 11 energy rebate and tax credit programs, close to the national average of 12 (rank #31 of 51).
At 12.02¢/kWh (rank #45), electricity is 3.9¢ cheaper than the national average of 15.9¢/kWh. Lower rates mean longer payback periods for solar, but rebates can still make it worthwhile.
Kentucky was allocated $136M in IRA (Inflation Reduction Act) funding — below the state average of $194M. Programs cover HOMES rebates ($69M) and HEEHR electrification ($67M).
IRA HOMES rebate status: Planning. HEEHR status: Planning.

State Programs

Tax Credits

Rebates

Utility Programs

Kentucky Electricity Rates

12.02 ¢/kWh

Residential

9.62 ¢/kWh

Commercial

6.61 ¢/kWh

Industrial

National rank: #45 | Compare all states

IRA Rebate Status in Kentucky

HOMES Program

Status: Planning

Funding: $69M

EEC oversight

HEEHR Program

Status: Planning

Funding: $67M

Coal community priority

Administered by: KY Energy & Environment Cabinet | Total IRA allocation: $136M

View all states →

Appliances(1 programs)

Kentucky Utilities (KU) Induction Cooktop Rebate

$100-$300Rebate

HVAC / Heat Pumps(3 programs)

Kentucky Heat Pump Rebate

$2,833Rebate

Kentucky Utilities (KU) Heat Pump Rebate

$500-$3,000Rebate

Louisville Gas & Electric (LG&E) Heat Pump Rebate

$500-$3,000Rebate

Lighting(1 programs)

Kentucky Utilities (KU) LED Lighting Rebate

$1-$5 per bulbRebate

Solar(5 programs)

Kentucky Net Metering

VariesPolicy

Kentucky Renewable Energy Property Tax Exemption

VariesTax Exemption

Kentucky Solar Rebate Program

$4,009Rebate

Kentucky Utilities (KU) Solar Panel Rebate

$500-$2,500Rebate

Louisville Gas & Electric (LG&E) Solar Panel Rebate

$500-$2,500Rebate

Weatherization(1 programs)

Kentucky Home Weatherization Rebate

$905Rebate

Federal Programs Available in Kentucky

All 15 federal programs apply to Kentucky residents and stack with state incentives.

Battery Storage Tax Credit30%ENERGY STAR Appliance Tax Credit30% up to $1,200 EV Charger Installation Credit (EVSE)30% up to $1,000 EV Tax Credit (New Clean Vehicle)Up to $7,500 Electric Panel Upgrade Credit30% up to $600 Energy-Efficient Commercial Building Deduction (179D)Up to $5.00/sq ft Energy-Efficient New Homes Credit (45L)Up to $5,000 Geothermal Heat Pump Tax Credit30%

View all federal programs →

Frequently Asked Questions

How many energy rebate programs are available in Kentucky?

Kentucky currently has 11 state-level energy incentive programs, plus all 15 federal programs that apply nationwide. These include tax credits, rebates, utility incentives, and financing programs.

Can Kentucky residents claim federal energy tax credits?

Yes. All Kentucky residents can claim federal energy tax credits including the 30% solar credit, up to $2,000 heat pump credit, and up to $7,500 EV credit, in addition to any Kentucky-specific programs.

What are the IRA rebate programs in Kentucky?

The IRA established two rebate programs: HOMES (for whole-home energy savings) and HEEHR (for electrification like heat pumps and appliances). Each state administers these programs independently. Check our Kentucky state page for current launch status and funding details.

How do I apply for Kentucky energy rebates?

Application processes vary by program. State tax credits are claimed on your state tax return. Utility rebates typically require submitting a form to your utility company. IRA rebates are applied at the point of sale through participating contractors.

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