Solar Financing and Incentives

Both state and federal incentives are in place to assist Kentuckians with achieving energy independence.

A 30% federal tax credit applies to both solar water heating and solar electric systems. Residential systems have a cap of $2,000 per system. Commercial systems have no limit and are also eligible to apply the credit to space heating systems. Right now the federal tax credit is set to expire at the end of 2008 – so call your representative and voice your support for improving and extending the federal tax credit!

We're excited to announce that Kentucky has made a great step toward promoting renewable energy and energy efficiency with the passage of House Bill 2. This provides a $500 state tax credit for either solar water heating, solar space heating, or solar electric systems. This means that Kentuckians can save up to $2500 on a solar thermal or solar electric system when both the federal and state tax credits are applied!

For many homeowners a home equity loan is a great choice to finance a renewable energy system and enjoy the savings of solar while dispersing the costs through a loan. Furthermore, investing in solar when you buy or build your home or business will often allow you to save more per month than the cost of financing the installed solar system.

We are also able to process part or all of your solar system through a credit card. This allows you to take advantage of the federal and state tax credits now while limiting the initial payment.

Homeowners and businesses in 51 southeastern Kentucky counties are also eligible for financing solar hot water systems through MACED in Berea, KY. MACED offers a 6%, 6 year loan with only 5% down for residential solar water heating systems. Businesses are also eligible for loans to improve energy efficiency and install solar energy in their facilities. For more information, click here.