Fayette County, KY — Solar Development Risk Assessment

No Moratorium

None codified. No county-specific setbacks confirmed.

Fayette County: CUP in Agricultural or zoning district (counties with P&Z). Siting Board certificate required for ≥10 MW; see State Permitting Requirements.

Very favorable — UKY/progressive urban; Lexington solar leader; land constraint; active commercial solar

Central KY; Lexington (UKY); largest KY city; urban/suburban; limited utility-scale land; commercial/campus primary; very active solar market

Improving

Kentucky Electric Generation and Transmission Siting Board (housed at KY PSC) requires construction certificate for merchant solar ≥10 MW (KRS §278.700–278.716). Board has 7 members: 3 PSC commissioners + Energy/Environment Cabinet Secretary + Economic Development Cabinet Secretary + 2 ad-hoc local government members from affected counties. Utility-owned facilities (LGE/KU, Duke Energy KY, etc.) go through separate KY PSC approval process. Sub-10 MW merchant projects: purely local zoning governs (if county has zoning). Dual-track for ≥10 MW in zoned counties: both Siting Board certificate AND local zoning compliance required. ~30+ KY counties have no formal planning/zoning — in those counties, Siting Board applies but no local ordinance layer. HB 790 (introduced Feb 2025, high-profile sponsors): proposed 350-ft minimum setback for unzoned counties — status pending. Barren County adopted 1,000-ft setback ordinance May 2025 (among most restrictive in KY). KRS §278.704: local government decommissioning requirements have primacy over Siting Board requirements. Active Siting Board pipeline: 60+ merchant solar applications filed 2020–2025. Grid split: most of KY in PJM territory; far western KY (Jackson Purchase) in TVA territory. No statewide preemption of local zoning for utility-scale solar — both tracks must be satisfied.

Kentucky has no Renewable Portfolio Standard — one of few states with no clean energy mandate. Net metering available: Kentucky Utilities (KU) and Louisville Gas & Electric (LGE); both are regulated by KY PSC; systems up to 30 kW retail, larger commercial negotiated. Property tax exemption: KY solar equipment exempt from state property tax. KY PSC Certificate of Need: required for generating facilities ≥10 MW, including solar. Utility: KU (LG&E and KU Energy) serves central/eastern KY; Big Sandy REA, Jackson Energy, Nolin RECC and other RECCs serve rural areas; TVA-served utilities (Paducah Power, others) in far western KY.

Bluegrass Plains Solar (East Kentucky Power Cooperative) | 40 MW | PSC Certificate approved 2024 | Under Construction

No confirmed denials on record as of Mar 2026.