Kentucky Energy Rebates 2026
Kentucky's federal HOMES and HEAR rebates are administered by Kentucky Energy and Environment Cabinet, Office of Energy Policy, and as of July 2026 they have not launched. Kentucky's combined Home Efficiency Rebate and HEAR program has not launched. The state is finalizing its DOE submission and no applications are being accepted. No Kentucky HOMES or HEAR rebate can be claimed today. The utility and weatherization programs listed further down this page are available today. The 25C and 25D federal tax credits expired December 31, 2025.
Program status and income limits on this page were last checked against official state and federal sources on . These programs change without notice.
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 |
Kentucky's combined Home Efficiency Rebate and HEAR program has not launched. The state is finalizing its DOE submission and no applications are being accepted. “Kentucky Home Energy Rebates are not yet available. Anyone that is offering these rebates is misinformed.” Source: Kentucky Energy and Environment Cabinet, Office of Energy Policy.
Official HOMES Program PageHEAR (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.
Official HEAR Program PageFind Pre-Screened Installers in Kentucky
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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) |
|---|---|---|
| Jefferson County | $79,200 | $148,500 |
| Fayette County | $81,700 | $153,100 |
| Kenton County | $87,900 | $164,800 |
| Warren County | $65,100 | $122,000 |
| Hardin County | $70,550 | $132,200 |
| Daviess County | $73,700 | $138,100 |
Eligibility is set by county and household size. The 80% figures are the HUD FY2026 income limits published for each county and are reproduced as-is. HUD does not publish a 150% limit, so that column is computed from the 80% limit; checked against Minnesota's official 2026 county table, the method lands within $200 on every county, but where your state publishes its own table, that table governs. Figures are for a 4-person household and change with household size.
Use Our Calculator to Check EligibilityBefore you spend money on this
Energy Rebate Calculator is an independent website. It is not affiliated with, endorsed by, or operated by the U.S. Department of Energy, Kentucky, or any other government agency, and nothing on this page is an offer, an application, or a promise of payment.
Federal and state rebate programs launch, pause, change their amounts and run out of funds without notice, and eligibility rules differ by county, household size, housing type and sometimes by region within a state. Most programs also refuse to pay for work completed before their launch date. Figures here are published to help you understand roughly where you stand, not to be relied on as the final word.
Confirm your eligibility and the current terms directly with the administering agency, and get written confirmation, before you sign a contract or buy equipment. Where this page cites an official source, that source governs. If you spot something out of date on this page, tell us and we will correct it.
Data vintage. The rebate data on this page was last updated on . We publish this date so you can judge for yourself how current the figures are.
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 (about 10¢/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.
Not confirmed. Duke Energy Kentucky's Smart Saver programme is confirmed active in a Kentucky Public Service Commission filing, but we could not read the current amounts on Duke Energy's own site. We are flagging this rather than removing it, because the programme does appear to exist. Confirm the current amounts and conditions with Duke Energy Kentucky before you commit to a project.
How to Claim Your Kentucky Rebates
