Solar in Kentucky Today
Solar energy is one of Kentucky's fastest-growing energy sources. According to the Solar Energy Industries Association (SEIA), solar projects have brought more than 1700 new jobs to the state. With $2.3 billion invested statewide, solar energy represents an emerging area of economic development as well as clean energy for Kentucky.
What Is Solar Energy?
Solar energy converts sunlight into electricity using photovoltaic (PV) panels. It can be installed on homes, businesses, schools, and large-scale solar farms.
Solar currently provides a small but growing share of Kentucky's electricity generation. While solar accounted for less than 1% of in-state electricity generation just a few years ago, new utility-scale projects are expected to significantly increase its contribution over the next decade.
Economic Impact
Kentucky's solar industry has attracted billions of dollars in planned investment. Solar projects provide:
Lease payments to landowners
Construction and maintenance jobs
Additional local tax revenue
New economic development opportunities in rural communities
Solar Jobs
According to the Interstate Renewable Energy Council (IREC), Kentucky supports hundreds of solar-related jobs in installation, project development, manufacturing, sales, and maintenance.
Solar is Growing in Kentucky Today
Solar panel costs have fallen by more than 70% over the past decade.
Utility-scale solar is now one of the lowest-cost sources of new electricity generation in many parts of the United States.
Businesses and utilities are seeking lower-carbon energy options.
Federal tax incentives have encouraged investment in new projects.
Benefits
No fuel costs
No air pollution during operation
Low operating expenses
Can be installed at many scales, from rooftops to large solar farms
Helps diversify Kentucky's energy mix
Challenges
Generates electricity only when sunlight is available
Output can be affected by weather conditions
Requires energy storage or backup power sources for continuous supply
Large projects require significant land area
Looking Ahead:
Solar energy is expected to play an increasingly important role in Kentucky's energy future as technology improves, energy storage expands, and additional projects are developed across the state. Many counties in Kentucky are currently implementing new solar projects. If you’re interested in learning about how solar energy affects your community, join us for one of our Regional Energy Forums!
Sources:
U.S. Energy Information Administration (EIA), Kentucky State Energy Profile https://www.eia.gov/states/KY/analysis
Solar Energy Industries Association (SEIA), Kentucky Solar Overview https://www.seia.org/state-solar-policy/kentucky-solar
Kentucky Energy and Environment Cabinet, Kentucky Energy Profile https://eec.ky.gov/Energy/Programs
Interstate Renewable Energy Council (IREC), National Solar Jobs Census and State Data https://irecusa.org