Rooftop solar panels line a large building as the sun sets.

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

Rows of solar panels are arranged in green fields on either side of an interstate.

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