Residents in London, KY who request quotes on the EnergySage Marketplace spend an average of $285 monthly on electricity. That adds up to $3,420 per year. A different way to look at it is that a typical London, KY resident uses 1,521 kWh of electricity per month and 18,252 kWh over the year.
(For what it’s worth: London, KY residents shopping for solar on EnergySage may use more electricity than a typical household.)
The easiest way to compare electricity costs across regions is to look at the electricity rate. In the U.S., residential rates generally range from 11 ¢/kWh all the way up to 34 ¢/kWh.
As of February 2026, the cost of electricity in London, KY is 19 ¢/kilowatt-hour (kWh)—roughly 5% lower than the national average cost. That number is based on real-world electric bills shared with EnergySage over the past 12 months. You can compare that number to the most recent average state electric price reported by the U.S. Energy Information Administration (EIA).
Kentucky’s electricity market is regulated, so you can’t choose which company supplies your electricity. Instead, the state determines your electric utility company based on where you live. There are four primary electricity companies in Kentucky, all of which are Investor Owned Utilities (IOUs), meaning they're private for-profit companies:
Louisville Gas & Electric (LG&E)
Kentucky Utilities (KU Energy)
Duke Energy
Kentucky Power
While the IOUs cover much of the state, some towns and cities are served by municipally-owned, not-for-profit electric companies that aren't subject to the same requirements as IOUs. These municipal utilities may offer lower rates, but may not offer benefits like net metering.
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When you pay your electric bill, you’re not only covering the costs to produce that electricity, but also the costs of running and maintaining the electrical grid, as well as public benefit funds that promote things like renewable energy and energy efficiency.
Electric bill costs are rolled into fixed (monthly customer charges) and variable charges (¢/kWh that you use).
Fixed charges, like the flat fee for having a meter, generally remain the same monthly unless your utility makes a policy update.
Your variable charges will change every month and depend on your electricity rate and how much electricity you use.
Your electric bill's variable charges will include a supply (or generation) charge and a transmission and distribution (or delivery) charge. The supply charge covers the cost of electricity generation, while the transmission and distribution charges cover the cost of delivering it to your home.
Depending on your utility company in Kentucky, most residents can choose to sign up for variable-rate plans, usually time-of-use (TOU) rates or demand charge plans.
If used with a solar or solar-plus-energy storage system, demand charge plans can help you reduce your EOM electric bill even further. TOU rates, meanwhile, mean you pay different rates per kWh depending on the time of day and season.
How clean is the electricity in Kentucky?
Due to the complex nature of utility grids, it's not easy to pin down exact data regarding exactly where the energy that goes to your specific home comes from, but according to the U.S. Energy Information Administration, about 92% of the electricity on Kentucky’s utility grid comes from fossil fuels—primarily coal—as of August 2025.
Only about 8% comes from renewable sources. Given that nearly all of the grid’s energy comes from fossil fuels, installing a home solar panel system in Kentucky will almost always shrink your carbon footprint.
Some electricity suppliers give you the option to pay a bit more so that most (or even all) of your electricity comes from renewable sources. If you’re unwilling or unable to go solar in Kentucky but still want to reduce your carbon footprint, this is a great alternative. It just won’t save you any money in most cases. (Though occasionally it could if it’s through a municipal group-buy program.)
As long as you have a suitable roof, one of the surest ways to save on energy is to go solar—ideally with a vetted contractor offering a competitive price.
Solar panels will reduce or even eliminate your electric bills in the short term and protect you against rising electricity costs in the long run, too. The amount you save depends on how much you spend on electricity now and how much of your electric bill you can offset with solar energy.
Solar panels are a big investment, but London, KY homeowners who install them—and pay upfront—break even after an average of just 12.78 years. Then, the solar panels will continue to produce free electricity for years to come.
Does Kentucky offer net metering?
On sunny days, you can count on your solar panels to produce more than enough electricity to meet your home's needs at any given moment.
That extra energy doesn't have to go to waste. In Kentucky, some (but not all) electric utilities offer net metering, a solar buyback program that provides energy credits for all the solar power you send to the grid. On cloudy days, nights, or any other time when you need to pull energy from the grid, your utility company deducts from your banked credits instead of charging you.
Under net metering, it doesn't matter when you produce solar power. Instead, what's important is the total amount you produce throughout the year.
While some electric utilities in Kentucky are required to offer net metering, others aren't, and the rules for those that do are a bit different from company to company. The 19 state-regulated utilities in Kentucky are required to offer net metering, but municipal electric utilities are not—though many still do.
Several electric utilities in western Kentucky are managed by Tennessee Valley Authority (TVA), which is not required to offer net metering. Some of these TVA-administered companies choose to offer net metering anyway, so make sure you check the rules with your company. TVA-administered companies in Kentucky include Gibson, Pennyrile, Tri-County, Warren, and West Kentucky.
How much can you save with solar?
Rising electricity prices mean that you can often save when you go solar in London, KY.
Just take a look at how much you'll spend on electricity over time based on your current bill. It’s easy to see how going solar can pay off quickly.
Electricity cost over time in Kentucky
Current monthly electric bill | 10-year electricity cost | 20-year electricity cost | 30-year electricity cost |
|---|---|---|---|
$50 | $6,700 | $15,000 | $26,000 |
$100 | $13,000 | $30,000 | $52,000 |
$150 | $20,000 | $46,000 | $78,000 |
$200 | $27,000 | $61,000 | $100,000 |
$250 | $33,000 | $76,000 | $130,000 |
Assuming a 2% annual increase based on inflation and average annual electric rate increases in Kentucky.
Let's assume you pay $285 for electricity monthly (the London, KY average) and that electricity prices increase by 2% annually. Let's also assume you buy your solar panel system upfront and that it costs you $36,000 before any available incentives.
In the first year with solar, you'll avoid spending $3,400 on electric bills. Over five years, you'll avoid $18,000; by 10 years, you'll have avoided $38,200. Solar panels are usually covered under warranty for 25 years—by then, you'll have avoided spending $115,500 on electric bills in London, KY.
The average payback period in London, KY is 12.78 years, so by this point, you've already broken even on your investment. When you subtract your upfront installation cost, you'll pocket $79,200 over 25 years with solar.
Your solar savings depend on you
How much your utility company charges for electricity is a big indicator of how much you'll save with solar. But your exact solar savings depend on your unique situation—including your energy usage, roof layout, system size, and how you pay for your system.
Here are some reasons your savings could be below average:
You don’t use much electricity, or your roof is small or has a less-than-ideal layout. You might have a relatively long payback period, so you'll save a little less over time.
You don't install enough solar panels to 100% offset your energy use. You’ll pay less up front but save less in the long run.
You finance your solar panel system with a loan or sign a lease or power purchase agreement (PPA) instead of paying up front. These types of arrangements can make a lot of sense for keeping your capital flexible and will allow you to start saving sooner. But they will cut into your long-term savings.
Choosing a high-quality solar installer is the key to getting a top-notch solar panel system that will help you save on electric bills.
We pre-screen all solar companies on EnergySage to ensure they get the job done right. Here are the highest-rated EnergySage installers in London, KY:
Elite InstallerScreened & Verified5.0 /5.0107 Reviews
Approved InstallerScreened & Verified4.7 /5.0624 Reviews
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