How Much Will Your Electric Bill Increase in Lexington Area?
- LG&E & KU have jointly filed for a proposed 8.3% increase in electric revenue for LG&E and 5% for KU, to take effect starting January 1, 2026 if approved by the Kentucky Public Service Commission (PSC)
- For an average residential customer:
- KU (1,085 kWh/month): + $18.14 per month
- LG&E (866 kWh/month): + $11.04 per month
- This would raise total bills by approximately 13–14%, citing decades‑long underinvestment in infrastructure, the need to improve grid resilience, and the end of a base-rate freeze since late 2020
🔍 What This Means for Louisville-Area Homeowners
- Once implemented, typical electric bills could rise $11–$18 per month, or an extra $132–$216 annually, even if your household usage stays the same.
- The utilities have stressed this is intended to fund critical upgrades: poles, wires, substations, and storm-proofing improvements, addressing wear and tear and weather-related vulnerabilities
- Although LG&E & KU rates are still expected to remain below the national average, this marks the first significant increase in years, after a freeze since November 2020
☀️ Solar: A Smart Defense Against Rising Costs
Adopting solar energy now can help you:
- Generate your own power, offsetting the need to buy rising kWh from the grid.
- Lock in low energy costs—once your system is installed, sunshine is free.
- Avoid future rate increases, including upcoming LG&E/KU hikes.
- Maximize savings while the 30% Federal Solar Tax Credit still applies (through December 31, 2025).
✅ Final Takeaway
Louisville homeowners should expect significant monthly increases in electric bills—$11–$18 more per month—starting 2026 if the PSC approves the filings. Solar offers a compelling alternative: stable, long‑term savings and protection against both current and future utility rate hikes.
📞 Schedule your expert consultation with Icon Solar today to evaluate how much you could save and take control of rising energy costs.