"My goal in getting the solar panels was to help save for my retirement. I want to have a really great retirement in the future and with these solar panels, I haven't had to make a gas/electric payment in over 3 months."
...read more"Icon Solar was recommended by a neighbor and they told us that they did extensive research and the process was exactly as they had told us... we looked at other options but Icon was just superior."
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Before we discuss why solar plus battery storage is the only way forward in 2025, we first need to understand: Net Metering.
For Kentucky homeowners, it all started in April 2008. This was the first year when a new law allowed utilities to offer ‘net metering’ to customers who generated electricity from certain sources, such as wind and solar.
What Is Net Metering?
Net metering, or Net Energy Metering (NEM), is a “billing mechanism” between utility companies and their customers (homeowners or businesses) who produce electricity from wind, biomass, biogas, hydroelectric, and/or solar (PV) systems. The billing mechanism (net metering) uses the electric meter (also known as a ‘SMART’ meter) on the side of your house to track how much energy you’re generating (from wind or solar). This enables the utility to calculate how much “credit” to apply if your system generates more energy than you need at any given time.
From 2008 to 2020, the ‘net metering rate’ (NEM rate) in Kentucky (statewide) was a full 1-to-1 kilowatt-hour (kWh) “exchange” for your surplus electricity. In other words, the utility company would credit you back at the retail rate of electricity.
In 2020, a new law allowed certain utility companies in various jurisdictions to start repealing (or scaling back) their ‘net metering’ policies, so utilities no longer had to pay out as much to their energy-producing customers (such as solar panel owners).
What Happened at the End of 2024?
Simply put, net metering has always been a way for solar homeowners to share their extra energy with the grid, receiving credits from utility companies in return.
However, at the end of 2024, something changed: Kentucky officially moved away from the 1-to-1 retail-rate NEM policy. This means that those credits are no longer as valuable as they once were.
The average NEM rate in Kentucky is now less than half of what the 1-to-1 or retail rate compensation used to be.
Duke Energy was the final utility company in Kentucky to offer the retail-rate NEM policy for 25 years (until 2049). However, the cut-off to be grandfathered into this opportunity ended in December 2024, just a few weeks ago.
So, What Now?
It's 2025, and Kentucky no longer offers the full retail-rate NEM policy as it once did...
What now?
...Well, if you believe electricity rates will continue to rise this year, next year, and beyond 📈 you would be correct.
Electricity prices are rising indefinitely—at least within our lifetime. In some cases, the rate of increase (higher utility costs) is significantly outpacing inflation, which feels downright unfair 🧐
If we look at the facts, the average price of electricity in the U.S. in 2022 was $0.12/kWh. By the end of 2024, the average price rose to $0.16/kWh—a 25% increase in just two years. In some states (particularly on the East Coast), electricity costs have risen by 40% in the past two years, which is staggering.
If you have solar + battery storage with a Tesla Powerwall or Enphase IQ Backup System, you not only gain the ability to disconnect and operate independently from the grid (when the grid goes offline), but you also ensure you’ll never overpay for electricity again. This is because you’re generating all your energy and storing it on-site at your home.
Get started with a free consultation and see how much you can save.