Louisville Gas and Electric and Kentucky Utilities: how it credits the solar power you send to the grid
A dollar credit for every kWh sent out under the NMS-2 tariff, about 7.5 cents per kWh as listed in a March 2026 PSC order; customers who started before September 24, 2021 keep kWh-for-kWh credits.
Checked November 12, 2026. Utilities change these rules; check the current tariff before you sign.
How it works
Louisville Gas and Electric and Kentucky Utilities credits exported power at 7.5 cents per kWh, about 57% of Kentucky's average electricity price.
For new customers, LG&E and KU credit every kWh you send to the grid at the NMS-2 rate and bill every kWh you take at retail.
Credits never become cash, even when you close the account, and can't pay the basic service charge.
The NMS-2 rate is reviewed in the companies' rate cases.
Already have solar? Customers who began net metering before September 24, 2021 keep kWh credits under NMS-1 for 25 years.
What it means for a typical Kentucky home
An average Kentucky home uses about 13,128 kWh a year. A 9 kW system costs about $23,130 at the 2026 median price and makes about 12,087 kWh in its first year, of which we assume about 7,252 kWh goes out to the grid because no one is home to use it.
| First-year savings | Payback | 25-year savings, after the price | |
|---|---|---|---|
| With LG&E and KU's credit | $1,179 | 19 years | $11,941 |
| If every exported kWh earned the full price | $1,587 | 15 years | $24,998 |
The difference, about $13,057 over 25 years, is what LG&E and KU's rules cost a typical system compared with full net metering. Using more of the power at home, while the sun is up, closes some of that gap. Uses Kentucky's average electricity price; LG&E and KU's own prices may be higher or lower. Paid in cash, no federal credit, prices rising 2.5% a year, one inverter replacement.
Utilities in neighboring states
| Utility | State | Exported power | Credit |
|---|---|---|---|
| LG&E and KU | Kentucky | Reduced credit (net billing) | 7.5¢ |
| Dominion Energy Virginia | Virginia | Full credit (net metering) | Full retail |
| Appalachian Power (Virginia) | Virginia | Full credit (net metering) | Full retail |
| AEP Ohio | Ohio | Monthly netting | About 90% of retail |
| FirstEnergy Ohio (Ohio Edison, Illuminating Co., Toledo Edison) | Ohio | Monthly netting | About 90% of retail |
| ComEd | Illinois | Reduced credit (net billing) | About 50% of retail |
| Ameren Illinois | Illinois | Reduced credit (net billing) | About 50% of retail |
| Duke Energy Indiana | Indiana | Reduced credit (net billing) | 5¢ (est.) |
| AES Indiana | Indiana | Reduced credit (net billing) | 5.43¢ |
| Ameren Missouri | Missouri | Monthly netting | About 85% of retail |
All 55 utilities · Solar in Kentucky · Lease and PPA terms by company
Sources: LG&E and KU: net metering; Kentucky PSC: March 2026 order listing the NMS-2 credit; U.S. Energy Information Administration (EIA), final 2025 data: Annual State Historical Spreadsheets (Form EIA-861, released October 7, 2026) and Electric Power Annual (October 21, 2026); EnergySage: median quoted price, first half of 2026.