Solar panels on a Kentucky home affect your insurance in three ways: dwelling coverage increases to reflect the added system value, coverage type varies by whether the panels are owned or leased, and some carriers add restrictions.
Written by Blake Boswell, licensed Kentucky property & casualty producer. Updated July 2026.
Owned solar vs. leased solar
Owned panels
Roof-mounted owned panels are typically covered under your homeowners policy’s dwelling coverage. Ground-mounted panels may be covered under Other Structures. You’ll need to increase dwelling coverage to reflect system value (typically $15,000-$45,000 for residential).
Leased solar or PPA
The solar company owns the panels and typically carries their own insurance. Your homeowners policy covers damage from covered perils to your roof, but not the panels themselves. Read the lease/PPA contract carefully.
Premium impact of installing solar
Increasing dwelling coverage by $30,000 adds about $50-$150 per year to Kentucky home insurance premium. Some carriers add a small solar-specific rating factor. Total impact usually $75-$250/year.
Coverage gaps Kentucky solar homeowners miss
- Wind damage — roof-mounted panels can lift in high wind. Verify coverage.
- Hail damage — modern panels are hail-rated but can crack in severe events.
- Inverter and battery — verify covered as scheduled property.
- Roof leak from installation — some carriers add exclusions; installer’s warranty covers this.
What to ask your agent
- Is my dwelling coverage adequate to include the solar system?
- Are roof-mounted panels under Dwelling (Coverage A) or Other Structures (B)?
- Are there wind/hail exclusions specific to solar?
- Is the inverter and battery storage covered?
Kentucky solar tax credits and insurance
Kentucky doesn’t offer a state-level solar tax credit but the federal Investment Tax Credit still applies to Kentucky homeowners. Consult your tax advisor if a claim occurs.
Before installing solar in Kentucky
Notify your insurance agent BEFORE installation begins. Call (270) 925-1524.
