Louisville homes are served by LG&E, and under Kentucky Senate Bill 100 new solar customers get net billing, not one-to-one net metering. LG&E credits exported power at about 6.924 cents per kWh, well below the 14.98 cent retail rate, so sizing solar to your own daytime use matters most here.
If you live in Louisville or anywhere in Jefferson County, your electric utility is Louisville Gas and Electric (LG&E), and that one fact shapes almost every solar decision you will make. Kentucky changed its rules with Senate Bill 100 in 2019, so a new solar home in Louisville no longer earns the old one-to-one retail credit for the power it sends to the grid. This page covers what LG&E pays you, how Louisville Metro permitting works, what a typical roof here produces, and what solar costs now that the federal homeowner credit has ended.
Louisville solar at a glance
Louisville is Kentucky’s largest city, and it sits entirely inside LG&E’s service territory. For the statewide rules and the neighboring KU territory, see our Kentucky solar guide, and for the full utility mechanics see the LG&E and KU net metering guide.
| Detail | What Louisville homeowners should know |
|---|---|
| Electric utility | Louisville Gas and Electric (LG&E), a PPL company, serves all of Jefferson County |
| How exports are credited | Net billing under Senate Bill 100 (2019), not 1:1 net metering, for new customers |
| LG&E export credit | About 6.924 cents per kWh, set on avoided cost (PSC Case 2020-00349); verify current |
| Kentucky retail rate | About 14.98 cents per kWh (EIA, May 2026), so the export credit is roughly half of retail |
| Local permitting | Louisville Metro electrical permit plus a simplified building permit for roof mounts |
| Typical roof output | About 8,061 kWh per year for a 6 kW system in ZIP 40202 (NREL PVWatts) |
The export credit is the heart of a Louisville solar decision. Because LG&E pays a fixed, below-retail rate for the power you send out, the strongest value comes from the solar you use inside your home the moment your panels make it. Estimate your roof with NREL’s free PVWatts calculator, then size to your usage rather than to a big export surplus. For the export mechanics in detail, read how net metering credits your solar exports.
What LG&E pays Louisville homes for solar
New Louisville solar homes are on net billing. Kentucky Senate Bill 100, passed in 2019, directed the Public Service Commission to set the rate utilities pay for exported solar, replacing the old full-retail credit for new customers (Kentucky SB 100). For LG&E, the PSC set an export credit of about 6.924 cents per kWh in its September 24, 2021 order in Case 2020-00349, calculated from the utility’s avoided cost, which is well below the retail price you pay for power (Kentucky PSC press release). Customers who started net metering on or after that date receive dollar-value bill credits at this rate for what they export (LG&E net metering).
Treat the exact rate as a moving number. The 6.924 cent figure is the last export rate the PSC clearly approved for LG&E, and it is the right one to plan around today, but LG&E rate cases in 2025 and 2026 have included proposals to change it. Because those are requests rather than final orders, confirm the current export credit with LG&E or in the PSC docket before you sign anything. What is not in doubt is the shape of the deal: in Louisville, an exported kilowatt-hour is worth noticeably less than one you use yourself. Homes that started net metering before September 24, 2021 are on the earlier kWh-credit arrangement, so confirm your status with LG&E if you already have solar.
What a Louisville roof actually produces
Louisville gets enough sun for solar to make sense, even without a coastal solar resource. Modeling a standard 6 kW rooftop system in ZIP 40202 with NREL’s PVWatts calculator returns about 8,061 kWh per year, at a 15.3 percent capacity factor and an average of 4.79 daily peak-sun-hours (NREL PVWatts). That is a solid, workable number for a Kentucky home.
MySolarFY computed estimate, dated August 2026: at LG&E’s retail rate of about 14.98 cents per kWh, that 8,061 kWh of annual output offsets up to roughly $1,208 a year in power you would otherwise buy, but only for the share you use as your panels make it. Power you export instead earns the lower credit near 6.924 cents, so your real savings depend on how much solar your household uses during daylight hours. This is an illustrative estimate from public NREL and EIA data, not a quote or a guarantee; your roof, shading, usage, and equipment change the result.
Permits and inspection in Louisville Metro
Louisville has a defined local permitting path, run by Louisville Metro. A roof-mounted home solar system in Jefferson County generally needs both an electrical permit and a simplified building permit, while a ground-mounted system needs only the electrical permit. Published Louisville Metro fees start around $50 for the electrical permit and $75 for the simplified building permit, with the building fee scaled to the size of the array (Louisville Metro solar panel permits). Louisville’s Office of Sustainability publishes a step-by-step homeowner guide to the process (Installing Solar in Louisville).
| Step | Who handles it in Louisville |
|---|---|
| Permits | Louisville Metro Construction Review: electrical permit plus a simplified building permit for roof mounts |
| Interconnection | LG&E net-metering application, with an inverter certified to UL 1741 and compliant with IEEE 1547 |
| Inspection and meter | Louisville Metro inspection, then LG&E sets a bidirectional meter |
| Permission to Operate | LG&E issues Permission to Operate; the system may not run on the grid before this |
A licensed installer normally manages permits and the LG&E interconnection for you. Confirm the current fees and forms with Louisville Metro, since local schedules change. For the questions to ask before you sign, see the right questions to ask a solar installer.
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What the federal change means for Louisville buyers
The federal homeowner tax credit is gone. The 30% Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a Louisville homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS OBBB FAQ). With no federal homeowner credit and a below-retail export rate, the strongest part of a Louisville solar case is offsetting the power you would otherwise buy at the retail rate. To see the full picture, compare local quotes against our Kentucky solar cost and payback guide.
One federal exception exists, and it is not yours to claim. A separate commercial credit, Section 48E, is claimed by the business that owns a leased or power purchase agreement (PPA) system, not by the homeowner. So on a lease or PPA in Louisville you do not file for a federal credit yourself; the company that owns the panels does, and your benefit is a lower or fixed power price with no up-front cost. The 25D homeowner credit, by contrast, ended for expenditures made after December 31, 2025. Ownership through cash or a loan is what puts the system’s value in your own name. To weigh the options, see how solar financing and lease-versus-buy options compare.
How to choose a solar installer in Louisville
Kentucky has a smaller solar market than the coasts, so vetting your installer carefully matters. Rather than chasing a “best” list, screen any Louisville installer against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- Proper Kentucky licensing and the required Louisville Metro electrical and building permits.
- A clear workmanship and equipment warranty in writing.
- Real experience with LG&E interconnection, so the application and Permission to Operate go smoothly.
- A written production estimate and a transparent quote that is honest about the below-retail export rate, not one that assumes full-retail net metering.
MySolarFY matches you with licensed installers that serve the Louisville area so you can compare real local quotes side by side, with no obligation. New to solar? Start with the basics of how home solar works.
Frequently asked questions
Who is the electric utility for solar in Louisville?
Louisville and all of Jefferson County are served by Louisville Gas and Electric (LG&E), a PPL company. LG&E handles your net-metering interconnection application, sets the bidirectional meter, and issues Permission to Operate before your system can run on the grid (LG&E net metering). Your export credit is set by the Kentucky Public Service Commission, not by your installer.
Does Louisville still have one-to-one net metering?
Not for new solar customers. Kentucky Senate Bill 100, passed in 2019, ended full-retail net metering for new systems and told the Public Service Commission to set the export rate instead (Kentucky SB 100). For LG&E, that rate is about 6.924 cents per kWh, well below the retail price of power. Homes that started net metering before September 24, 2021 are on the earlier kWh-credit arrangement; confirm your status with LG&E.
How much does a Louisville roof produce?
Modeling a 6 kW system in ZIP 40202 with NREL PVWatts returns about 8,061 kWh per year, at a 15.3 percent capacity factor (NREL PVWatts). At LG&E’s retail rate near 14.98 cents per kWh (EIA, May 2026), that output offsets up to about $1,208 a year in power you would otherwise buy, for the share you use as your panels make it. Exports earn the lower credit, so daytime self-use drives the real savings.
What permits do I need for solar in Louisville?
A roof-mounted home system in Jefferson County generally needs a Louisville Metro electrical permit plus a simplified building permit; a ground mount needs only the electrical permit. Published fees start around $50 and $75, with the building fee scaled to array size (Louisville Metro solar panel permits). Your installer usually pulls the permits and files the LG&E interconnection application. Confirm current fees with Louisville Metro before you budget.
What happened to the federal solar tax credit?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act. A Louisville homeowner who buys solar in 2026 with cash or a loan cannot claim it (IRS). A separate commercial credit, Section 48E, can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner.
Is solar still worth it in Louisville with a below-retail export rate?
It can be, but the math is different from a one-to-one state. Because exports earn only about half of retail, most of the value comes from the solar you use in your home rather than what you export. A system sized to your actual usage, with good daytime self-consumption, offsets power you would otherwise buy at about 14.98 cents per kWh. Get several local quotes and a written production estimate, and make sure they assume the real LG&E export rate, not full-retail net metering.
Reviewed by the MySolarFY team. Figures were verified against the linked Kentucky (LG&E, Kentucky Public Service Commission Case 2020-00349, Kentucky General Assembly SB 100), Louisville Metro Government, EIA, NREL PVWatts, and IRS sources as of August 2026; the LG&E export credit rate is set by the PSC and is under review in current rate cases, so confirm the current rate with LG&E and the Kentucky PSC before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the bill credits and any federal credit go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.