Incentives for Energy Efficiency And Renewable Available from U.S. Ag Department

Certain groups of Kentuckians looking to lower their energy bills can get incentives that help defray the cost of efficiency upgrades and renewable energy projects.

The U.S. Department of Agriculture’s Rural Energy for America Program (REAP) provides grants and loans to agricultural producers and small businesses in eligible rural areas for a wide range of renewable and energy efficiency projects. Most of the state outside of Lexington, Louisville, and Northern Kentucky qualifies as “rural.”  Available funding includes loan guarantees on loans up to 75 percent of total eligible project costs; grants for up to 25 percent of total eligible project costs; and combined grant and loan guarantee funding up to 75 percent of total eligible project costs. For more information, please visit

A number of federal tax credits for residential energy efficiency measures are available through the end of the year.  These credits include new windows and doors, roofing, insulation, HVAC, water heaters and biomass stoves. More information is available here

In addition to tax credits and other incentives, homeowners can finance a new home with an energy-efficiency mortgage or cover energy-efficiency retrofits on an existing home by refinancing an existing loan.

Kentuckians can also check with their electric utility provider for any rebates and incentives they might offer.