Solar Panels in Covington, KY: Cost, Payback & Savings
A typical 10.4 kW home solar system in Covington costs about $37,440 and pays for itself in about 22.8 years, saving roughly $4,499 over 25 years at Kentucky's average electricity price of 14.3¢/kWh. Power you send back to the grid earns only about 7.3¢/kWh here, which is built into these numbers.
Monthly solar production in Covington
Estimated output of a 10.4 kW south-facing roof system. Jul is the strongest month (1,375 kWh); Dec the weakest (681 kWh).
Solar production (kWh) Typical home use, 1,047 kWh/month
Solar payback calculator for Covington
Pre-filled with Covington's sunshine and Kentucky's average electricity price. Enter your own bill and an installer's price per watt to see your payback.
Leave export credit blank where the utility offers full net metering. Where exports earn less, solar used at home as it's produced is worth the full price and the rest earns the export credit.
How Covington compares
- Each kW of panels here produces about 1,250 kWh a year — 7% less than the Kentucky median and 9% less than the US median city (1,371 kWh).
- Payback ranks #50 of 52 Kentucky places we cover.
- Sunshine varies little across a state; electricity price, installed cost and how utilities credit exported power drive most of the difference between states.
Net metering, tax credits and incentives in 2026
Kentucky pays less than retail for exported solar power. Under Net metering service (NMS-2), power you send to the grid earns about 7.3¢/kWh, against 14.3¢ for power you buy. We assume 40% of a no-battery system's output is used at home as it's produced (worth the full price) and the rest is exported, so each solar kWh is worth about 10.1¢. Using more of your solar yourself, by running appliances midday or adding a battery, raises that.
LG&E and KU credit exports at about 7.1¢ and 7.5¢ per kWh (March 2026 Kentucky PSC orders); other Kentucky utilities set their own rates. Source.
There is no federal tax credit for buying home solar installed in 2026. The 30% Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so the costs and paybacks on this page include no federal credit.
Kentucky and local utilities may still offer rebates, performance payments, property-tax or sales-tax exemptions. Search the DSIRE incentives database for Kentucky and ask installers which programs they apply for you.
Frequently asked questions
Is solar worth it in Covington, KY?
For a typical home, a solar system pays for itself in about 22.8 years and then keeps saving money. Over 25 years the estimated net savings are $4,499. Verdict: hard to justify on savings alone. Your own payback depends on your roof, your bill and the quotes you get.
How many solar panels do I need in Covington, KY?
A home using 1,047 kWh a month (the Kentucky average) needs about 26 panels of 400 W — a 10.4 kW system — to cover its annual use. Divide your own yearly kWh by 1,250 to get the kW you need.
How much do solar panels cost in Covington, KY?
At 3.60 dollars per watt, a 10.4 kW system costs about $37,440 before any state or utility incentives. There is no federal tax credit for systems installed in 2026.
How much sun does Covington get?
Covington averages 4.6 peak sun hours per day, so each kilowatt of panels produces about 1,250 kWh a year.
Does Kentucky have net metering?
Not full retail net metering. Under Net metering service (NMS-2), exported solar power earns about 7.3¢ per kWh, versus 14.3¢ for power bought from the grid. Solar you use at home as it's produced still saves the full price.
How much does electricity cost in Kentucky?
Residential electricity in Kentucky averages 14.3¢ per kWh, and a typical home uses 1,047 kWh a month (EIA).
Solar payback in nearby places
- Newport22.8 yrs
- Fort Thomas22.7 yrs
- Erlanger22.4 yrs
- Florence22.4 yrs
- Independence22.2 yrs
- Burlington22.3 yrs
- Georgetown21.3 yrs
- Paris21.5 yrs