The TVA framework, briefly
Kentucky law requires investor-owned utilities and electric cooperatives to offer net metering but excludes TVA, which supplies much of western Kentucky through local power companies.
Under TVA Dispersed Power Production, a residential customer may sell excess generation to TVA at TVA avoided cost, a wholesale-style measure well below the retail price of electricity.
An interconnection agreement with your local power company is required to participate, and TVA Green Connect is the route that arranges it along with access to TVA-approved contractors.
So there are two organisations involved: TVA sets the framework and buys the exports, while your local power company handles the interconnection, the fees and the timeline.
What avoided-cost export does to a design
Electricity you consume at the moment it is generated displaces a purchase at the full retail rate. Electricity you export earns avoided cost. Those are very different amounts.
So annual production is not a useful summary of what a system is worth. What matters is how much of that production your household absorbs as it happens.
The marginal panel at the top of a design produces mostly exports, earning a fraction of retail while costing full price, so the return on each additional panel falls as the system grows.
A system covering roughly 70 to 80 percent of annual consumption frequently returns better than one covering 100 percent under this kind of arrangement. Ask for a smaller design modelled alongside the proposal.
The levers that help
Shifting flexible loads into daylight converts avoided-cost exports into full-value avoided purchases at no cost. Dishwasher, laundry, pool pump and electric vehicle charging all move easily.
Pre-cooling on hot afternoons is usually the largest free lever, because air conditioning is the biggest load in a Kentucky summer and it runs hardest when generation peaks.
Storage does the same automatically and at scale, and under an avoided-cost arrangement it does genuine arbitrage rather than only providing outage resilience.
Ask for the system modelled with and without storage so the incremental value is a visible number, and ask what round-trip losses the model assumed.
Rebuilding the arithmetic on Kentucky terms
The 30 percent federal Residential Clean Energy Credit under Section 25D expired for property placed in service after December 31, 2025, so a cash or loan purchase receives no federal tax credit, and Kentucky has no state solar tax credit.
Section 48E survives at 30 percent for third-party owners under leases and power purchase agreements, so ask what a provider claims and what reaches you in the rate.
What exists is full retail value for electricity consumed as it is generated, TVA avoided cost for exports, and whatever your local power company charges in fixed monthly costs.
Ask for the projection with those separated, the self-consumption share stated, and the interconnection timeline committed in writing by your installer.