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Energy Rebates in Kentucky
Kentucky residents can access a range of federal energy tax credits, state-specific incentive programs, and local utility rebates to help offset the cost of energy-efficient home improvements. This page covers the key programs available in Kentucky, including heat pump rebates, solar incentives, EV charger credits, weatherization assistance, and more. Each program listed below includes eligibility details and links to official sources.
Federal Programs in Kentucky for 2026
- Federal home energy tax credits (25C and 25D) ended after 2025: The 25C Energy Efficient Home Improvement Credit does not apply to property placed in service after December 31, 2025, and the 25D Residential Clean Energy Credit (solar, batteries, geothermal) does not apply to expenditures made after December 31, 2025 (IRS). Work completed in 2025 or earlier can still be claimed on IRS Form 5695.
- HOMES & HEAR Rebates: Kentucky had not launched the HOMES or HEAR rebate programs as of the NASEO tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. HEAR can provide up to $14,000 per income-qualified household; see our HEAR and HOMES guides.
- 30C EV Charger Credit (ended): Does not apply to chargers placed in service after June 30, 2026.
- Weatherization Assistance Program (WAP): Free weatherization services for low-income households, generally at or below 200% of the federal poverty level.
Kentucky Energy Rebate Overview
Kentucky households have access to a combination of federal, state, and local utility incentives designed to make energy-efficient home upgrades more affordable. Kentucky had not launched the HOMES or HEAR rebate programs as of the NASEO tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. The Kentucky Energy and Environment Cabinet - Department for Energy Development and Independence coordinates state-level energy programs and can provide the latest information on available incentives.
HOMES & HEAR Program Status in Kentucky
Kentucky had not launched the HOMES or HEAR rebate programs as of the NASEO tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. The Kentucky Energy and Environment Cabinet is working on program design and implementation using approximately $60 million in IRA funding allocated to the state.
Income Eligibility for Kentucky Rebates
For a family of four in Louisville, 80% AMI is approximately $58,800. Under federal HOMES rules, low-income households can receive the largest rebates where the state runs the program; states set the exact amounts.
For a family of four in Louisville, 150% AMI is approximately $110,250. Moderate-income households can receive smaller, partial HOMES rebates where the program is available.
Kentucky State Tax Credits
Kentucky does not currently offer state tax credits for residential renewable energy or energy efficiency
Amount: N/A
Eligible items: N/A
Kentucky does not have state-level solar tax credits, energy efficiency tax credits, or renewable energy tax incentives for residential customers. Residents may claim the federal 30% solar Investment Tax Credit. Kentucky does exempt solar and wind equipment from state sales tax.
Kentucky State Rebate Programs
Kentucky Weatherization Assistance Program
Administered by: Kentucky Housing Corporation / Community Action Kentucky
Amount: Average of $7,000+ per home
Eligible items: Insulation, air sealing, furnace repair and replacement, duct sealing, window and door repairs, water heater replacement
Available to households at or below 200% of the federal poverty level. Administered by local community action agencies across the state.
TVA EnergyRight Residential Solutions (for TVA-served areas)
Administered by: Tennessee Valley Authority and local power companies
Amount: Up to $2,000 depending on measure
Eligible items: Heat pumps, insulation, duct sealing, ENERGY STAR windows, smart thermostats, whole-home energy assessments
Available to customers in eastern Kentucky served by TVA-affiliated municipal and cooperative utilities. Includes energy audits and incentive payments for efficiency improvements.
Solar Net Metering in Kentucky
Kentucky offers net metering for systems up to 45 kW. Under SB 100 (2019), the compensation rate for new net metering customers was changed from full retail rate to a rate set by the Public Service Commission based on the avoided cost of energy plus a solar rate adder. Existing net metering customers are grandfathered at retail rate for 25 years.
Utility Rebate Programs in Kentucky
Kentucky residents may qualify for additional rebates from their local utility company. Here are programs from major utilities serving the state:
Louisville Gas & Electric / Kentucky Utilities (LG&E/KU)
LG&E/KU WeCare Home Energy Assistance
Amount: Free energy efficiency improvements for income-qualified customers
Eligible items: Insulation, air sealing, LED lighting, smart thermostats, HVAC tune-ups for qualifying low-income households
LG&E/KU Demand Conservation Program
Amount: Monthly bill credits for participation
Eligible items: Smart thermostat demand response program for central air conditioning and heat pump customers
Duke Energy Kentucky
Duke Energy Kentucky Smart Saver Program
Amount: $200-$750 depending on equipment
Eligible items: ENERGY STAR heat pumps, central air conditioners, heat pump water heaters, smart thermostats
Kentucky Power (AEP)
Kentucky Power Residential Programs
Amount: $50-$500 depending on measure
Eligible items: HVAC upgrades, weatherization, smart thermostats, ENERGY STAR appliances
Get Personalized Kentucky Rebate Guidance
Enter your ZIP code below to chat with our AI about rebates specific to your area in Kentucky. The AI will check federal, state, and utility programs and give you a personalized breakdown of what you may qualify for and how to apply.
Frequently Asked Questions About Kentucky Rebates
What energy rebates are available in Kentucky?
With the federal 25C and 25D tax credits ended after 2025, Kentucky residents should look to state, utility and HOMES/HEAR programs. State-level programs include Kentucky Weatherization Assistance Program, TVA EnergyRight Residential Solutions (for TVA-served areas).
Has Kentucky launched the HOMES and HEAR rebate programs?
Kentucky had not launched the HOMES or HEAR rebate programs as of the NASEO tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. The Kentucky Energy and Environment Cabinet is working on program design and implementation using approximately $60 million in IRA funding allocated to the state.
What are the income limits for energy rebates in Kentucky?
For a family of four in Louisville, 80% AMI is approximately $58,800. Under federal HOMES rules, low-income households can receive the largest rebates where the state runs the program; states set the exact amounts. For a family of four in Louisville, 150% AMI is approximately $110,250. Moderate-income households can receive smaller, partial HOMES rebates where the program is available.
Does Kentucky have net metering for solar panels?
Kentucky offers net metering for systems up to 45 kW. Under SB 100 (2019), the compensation rate for new net metering customers was changed from full retail rate to a rate set by the Public Service Commission based on the avoided cost of energy plus a solar rate adder. Existing net metering customers are grandfathered at retail rate for 25 years.
How do I apply for energy rebates in Kentucky?
Start by entering your ZIP code on Rebate Atlas to get personalized guidance. If you completed qualifying work in 2025 or earlier, claim the 25C or 25D credit on IRS Form 5695 for that tax year (both ended for 2026 work). For state programs, contact the Kentucky Energy and Environment Cabinet - Department for Energy Development and Independence. For utility rebates, check with your local utility provider directly.
Explore Nearby States
Compare energy rebate programs in neighboring states: