Kentucky Energy Rebates 2026
Kentucky homeowners in 2026 can access federal HEAR and HOMES rebates administered by the Kentucky Energy and Environment Cabinet, plus utility rebates from Louisville Gas & Electric (LG&E), Kentucky Utilities (KU), and Duke Energy Kentucky. Kentucky's mixed climate — hot summers and cold winters — makes heat pumps an efficient year-round choice. The 25C and 25D federal tax credits expired December 31, 2025.
HOMES Rebate Program in Kentucky
| Income Level | Max Rebate | Cost Coverage |
|---|---|---|
| Low income (≤80% AMI) | Up to $8,000 | 80% of project cost |
| Moderate income (80-150% AMI) | Up to $4,000 | 50% of project cost |
| Above 150% AMI | Not eligible | N/A |
HOMES rebates are administered by the Kentucky Energy and Environment Cabinet. Provides up to $4,000 for 20–35% whole-home energy savings and up to $8,000 for 35%+ savings. Income-qualified households (≤80% AMI) receive doubled amounts. A qualifying energy audit is required to start the HOMES process.
HEAR (HEEHRA) Rebates in Kentucky
| Equipment | Max Rebate |
|---|---|
| Heat Pump HVAC | Up to $8,000 |
| Electrical Panel | Up to $4,000 |
| Wiring Upgrade | Up to $2,500 |
| Heat Pump Water Heater | Up to $1,750 |
| Insulation & Weatherization | Up to $1,600 |
| Electric Stove/Cooktop | Up to $840 |
Maximum total: $14,000 per household (low-income, ≤80% AMI). Moderate income (80-150% AMI) can receive up to $7,000.
Kentucky State Incentive Programs
LG&E and KU Energy Efficiency Programs
Louisville Gas & Electric (LG&E) and Kentucky Utilities (KU), both PPL Corporation subsidiaries, offer residential energy efficiency rebates for heat pumps, smart thermostats, and insulation. LG&E/KU programs can be stacked with federal HEAR rebates for additional savings.
Learn moreKentucky Weatherization Assistance Program
Federally funded weatherization services delivered through local Community Action Agencies. Provides free insulation, air sealing, heating system repairs, and health/safety improvements for income-qualified households (at or below 200% of federal poverty level). Kentucky's older rural housing stock creates significant weatherization needs.
Learn moreUtility Rebate Programs in Kentucky
Area Median Income (AMI) in Kentucky
HOMES and HEAR rebate amounts depend on your household income relative to the Area Median Income in your area. AMI varies by county and household size.
| Area | 80% AMI (Family of 4) | 150% AMI (Family of 4) |
|---|---|---|
| Louisville-Jefferson County MSA | $69,760 | $130,800 |
| Lexington-Fayette MSA | $72,400 | $135,750 |
| Cincinnati-Norwood MSA (northern KY portion) | $80,000 | $150,000 |
Frequently Asked Questions
What energy rebates are available in Kentucky in 2026?
Kentucky homeowners in 2026 can access: (1) Federal HEAR rebates for heat pumps (up to $8,000), heat pump water heaters ($1,750), insulation ($1,600), and electrical panels ($4,000) for income-qualified households (≤150% AMI); (2) HOMES whole-home performance rebates up to $8,000; (3) LG&E/KU utility rebates for heat pumps and thermostats; (4) Weatherization Assistance (free, income-qualified). The 25C and 25D federal tax credits expired December 31, 2025.
Are federal tax credits still available in Kentucky?
No. The One Big Beautiful Bill Act (OBBBA, P.L. 119-21, signed July 4, 2025) terminated the Section 25C and 25D federal energy tax credits for installations after December 31, 2025. If you installed qualifying equipment before that date, you can still claim the credit on your 2025 tax return. For 2026 installations, HEAR and HOMES rebates are the primary federal incentive paths.
Are heat pumps worth it in Kentucky given low electricity rates?
Yes, particularly for homes replacing propane or oil heating. Kentucky's electricity rates (~11¢/kWh) are among the lowest in the country, making heat pump operating costs very competitive. Homes switching from propane or oil see significant annual savings. Combined with HEAR rebates (up to $8,000 for income-qualifying households) and LG&E/KU utility incentives, the payback period for a heat pump upgrade is often under 5 years.
Who administers HEAR and HOMES rebates in Kentucky?
The Kentucky Energy and Environment Cabinet administers both the HEAR and HOMES programs in Kentucky. Contact the Cabinet or visit their website to find participating contractors and current program guidelines. Your local Community Action Agency can also help income-qualified households navigate both weatherization and HEAR/HOMES rebate options.
Does Duke Energy serve Kentucky customers?
Yes. Duke Energy Kentucky serves customers in northern Kentucky, including the Covington, Florence, and Newport areas along the Ohio River (the Cincinnati metro border). Duke Energy Kentucky customers can access Duke Energy's Smart Saver utility rebates (up to $400 for heat pumps, $75 for smart thermostats) in addition to the federal HEAR and HOMES programs available statewide through the Kentucky Energy and Environment Cabinet.
How to Claim Your Kentucky Rebates
