Top Tier Battery Sales Reference — Kentucky (Duke Energy KY)

Single-utility market. Top Tier's Kentucky launch focuses on Duke Energy Kentucky — Cincinnati-area Northern Kentucky (Boone, Campbell, Grant, Kenton, Pendleton counties), ~142,900 customers, PJM Zone DEOK. LG&E, KU, and Kentucky Power are out of scope for now; if rep demand surfaces, those add as additional utilities under this market.

Cohort-aware market. Per KY PSC Case 2023-00413 (Oct 2024 order), Duke KY residential solar split on January 1, 2025:

• NM I = pre-Jan 1, 2025 install AND original owner → full retail 1:1 net metering, grandfathered 25 yr from install (not perpetual), forfeit on property transfer
• NM II = post-Jan 1, 2025 install OR pre-2025 install on a property that's changed hands since Jan 1, 2025 → avoided-cost net billing methodology, exports credited well below retail

The rep's first job: screen the cohort. Ask install date + "Did you install the solar, or did you buy the home with solar already on it?" That two-input combo locks the cohort.

The Opening: Lead With Takeover, Not Math

The customer booked the appointment because they're frustrated about their utility bill AND their installer is unreachable. Don't open with savings math. Don't open with charts. Don't open with the technical pitch. Open with:

1. The free system inspection. "I'm here to inspect your existing solar system at no cost. If it's running well, we'll confirm that. If anything's wrong, we'll surface it. Either way, you walk away with a clearer picture of what you own."
2. System takeover. "When your inverter fails — and inverters do fail, usually between year 8 and year 20 — you need someone to handle the warranty claim and the replacement. Top Tier becomes your single point of contact for the next 10 years on the entire system, not just on anything new we install."
3. Then bridge to the bill. "You're still seeing a utility bill after going solar. Let me walk you through why, given your cohort, and what changes when we add storage."

The battery is the upsell that makes the deal economic for Top Tier; takeover/inspection is the lead the customer agreed to. Reps get paid on battery sales. Don't lose the open by leading with the close.

Standing Rules (Do NOT Violate)

• ❌ NEVER coach reps to disqualify based on home tenure. If a customer plans to sell in 3 years, the right move is the resale story (system raises home value; closing equity pays off loan; warranties carry over per their actual transfer rules) — not "walk away."
• ❌ NEVER claim "all warranties transfer." Workmanship transfers WITH WRITTEN CONSENT. Manufacturer warranties transfer per their own terms. The 5-year Align Solar Protection service contract is NON-TRANSFERABLE.
• ❌ NEVER fabricate inspection findings. The inspection is mostly about education + diagnosing the bill problem + future-failure prevention. Real findings at time of sale are rare. Document what you actually see; flag what you can't determine.
• ⚠ Verify NM II export rate against the customer's actual bill. The Duke KY Rider NM-2 residential rate is 6.2924¢/kWh (KY PSC Order Case 2023-00413, Oct 11, 2024 Appendix, effective Jan 1, 2025). Duke filed Case 2025-00258 in August 2025 seeking an NM-2 rate adjustment — that case remains pending as of this commit, so the rate could change at the customer's next bill cycle. Quote 6.2924¢ as the current published rate; verify against the customer's recent bill before locking precise bill math.

Why You Still Have a Bill (Cohort-Aware Bridge)

KY customers fall into two cohorts. The bill-confusion bridge differs materially. Don't use the wrong one.

For NM I customers (pre-Jan 1, 2025 install, original owner)

Headline: "Your bill should be small. Here's what it covers."

"Under your NM I grandfathered tariff, Duke Energy Kentucky credits your exports at the SAME retail rate they charge you for imports — so your annual kWh charges should mostly zero out. The bill you still see covers fixed monthly charges (the $14.75 customer charge, riders, taxes), any consumption above what your solar produces, and time-of-day or seasonal imbalances. A battery doesn't change your daily bill math much under 1:1 NM today — but it's how you lock in your position when net metering rules change."

Why this matters now (even though current bill is small):

• KY's net metering rules ALREADY changed once (NM I → NM II, Jan 1, 2025). NM I customers are insulated TODAY.
• NM I grandfathering forfeits on property transfer. If you sell, the new owner rolls to NM II. Battery installed now means the next owner inherits a system that's already valuable under either tariff.
• NM I grandfathering runs 25 years from install date. Not perpetual. A 2020 install loses grandfathering around 2045.

For NM II customers (post-Jan 1, 2025 install OR transferred property)

Headline: "You went solar and still see a bill. Here's why."

"Duke Energy Kentucky doesn't pay you the same rate for the energy you export as the rate you pay when you import. They credit your exports at the avoided-cost net-billing rate (the NM II rate), but you buy electricity back at the full retail rate (~12.2¢/kWh). The spread between the two is where your residual bill comes from. Every kWh your solar produces during the day that you don't use immediately gets credited at the lower export rate. Every kWh you import after sunset costs you retail. A battery stores your daytime production for nighttime use — closing the spread by self-consuming what you'd otherwise export."

Why this matters:

• The NM II spread is the active bill-savings story. Self-consumption captures the difference between retail import (~12.24¢/kWh) and the Duke KY Rider NM-2 export rate of 6.2924¢/kWh — a ~6¢/kWh spread the battery captures on every kWh of self-consumption instead of letting it export at the lower NM-2 rate.
• Verify the customer's actual export rate against their bill. Bills are the source of truth.
• The Duke KY rate trajectory (4.6%/yr CAGR documented 2020-2026) means the spread widens over time.

Cohort Screening Protocol (First 60 Seconds)

Ask in order:

1. "What year was your solar interconnected?" (Month + year. Bill PDF or installer invoice has it.)
2. "Are you the original owner of the system, or did the home already have solar when you bought it?" (Original = installed it themselves. Bought-with-solar = property transfer triggered NM II rollover even if install was pre-2025.)
3. Lock the cohort:
   • Install year ≤ 2024 AND original owner = NM I (grandfathered, qualitative pitch)
   • Install year ≥ 2025 OR not original owner = NM II (standard EDG-spread pitch)

Hidden Costs Avoided: The $11K System Takeover Bundle

Pillar 3 of the pitch. When you take over the system, you bundle in services the customer would otherwise pay out of pocket over the 25-year horizon. These are estimates, not firm line-item quotes — but they total over $11K of value the customer doesn't see on the proposal's headline savings number.

How to use it in the close: "On top of the bill math we walked through, you're picking up over $11K of bundled services that aren't sold separately. We don't quote them as line items — they're built into the takeover. But if your inverter fails in year 12, the manufacturer warranty handling alone is worth $300-500. The replacement coordination saves you another $3-5K. The 5-year Align contract on your existing system is $1,500 you'd otherwise pay if you went looking for it. It adds up."

What You Own vs What You Rent (Cohort-Aware)

The 25-year horizon isn't about which line is lower on a chart — it's about whether the customer walks out with an asset. Cohort changes the framing.

NM I (qualitative — small bill today, ownership tomorrow)

"Your bill is small today — your solar's doing what it should. The 25-year horizon for you isn't about a dollar gap on the chart. It's about what your monthly loan payment actually buys you that your current bill doesn't."

What ~$41K over 15 years buys an NM I customer:

• Ownership of generation + storage. System is yours. Loan paid off at year 15; years 16-25 you own outright with no payment.
• Incremental home value: $3K-$10K. Lawrence Berkeley Lab storage-premium research suggests battery adds this on top of solar's premium (your solar likely added ~$15-20K at original install — battery builds on that).
• Hurricane / outage resilience. Your solar shuts off during grid outages today (anti-islanding). A battery keeps critical loads running.
• Locked-in position when net metering rules change. NM I grandfathering forfeits on property transfer AND runs out at 25 years from install. Battery insulates you against both.
• 10-year Top Tier workmanship warranty + service path. When your original installer is unreachable, Top Tier is your single point of contact for the next 10+ years.

NM II (dollar comparison — rent vs own + asset)

"Over 25 years: are you renting power or owning it?"

Show the customer two columns:

What you rent (cumulative utility payments, 25 yr at the moderate 5%/yr scenario):

• ~$60-80K depending on bill size
• Money paid to Duke Energy Kentucky, escalating year after year
• You own nothing at the end

What you own (total loan payments over 15 yr + system + incremental home value):

• ~$41K loan total, then loan paid off (years 16-25 with no payment)
• Incremental home value: $3K-$10K (Berkeley Lab)
• Asset you control, plus protection through future rate cases

The 25-year savings number on the proposal is the rent column minus the own column at year 25.

Rate Increases: Duke KY Trajectory

Duke Energy Kentucky residential rates climbed approximately 31% nominal 2020 → 2026 — roughly 4.6%/yr CAGR — with discrete step-changes at rate-case decisions every 3-4 years.

Three Scenarios (Proposal Columns)

Reps: quote the moderate as the working assumption. The optimistic and aggressive bracket the documented trajectory. Don't anchor on aggressive (it's the upper bound for "what could happen if PJM patterns deteriorate"), don't anchor on optimistic (PSC restraint is real but capital drivers don't pause).

Federal & State Tax Credits

What's Gone

• Federal ITC expired December 31, 2025 per the One Big Beautiful Bill Act. New 2026 cash or financed residential battery installations do not qualify. Approximately $5,000-7,000 of lost incentive value on a typical $18,500 install.

What Remains for Kentucky

• Kentucky has NO state solar income tax credit. (Unlike South Carolina's Form TC-38 25% credit — KY does not have an equivalent.)
• Kentucky has NO state-level sales tax exemption for residential solar/battery equipment. Standard 6% state sales tax applies.
• Kentucky has NO state-level property tax exemption for residential solar.
• Kentucky has NO battery rebate, VPP, or DR program from Duke Energy Kentucky. (Power Manager smart-thermostat DR exists at $75 enrollment + $25/yr — not a battery program.)
• PACE financing (property-tax-assessment financing) is available statewide.
• IRA-funded Kentucky Home Energy Rebates program (HEEHRA / HOMES) is not yet accepting applications as of 2026.

How to Handle the Conversation

"You may have heard about the 30% federal tax credit. That expired at the end of 2025 for direct purchases. Kentucky doesn't have a state solar tax credit either — South Carolina has one, several other states do, but Kentucky doesn't. For cash or financed purchases like ours, there's no tax credit on this install. The trade-off: you own the asset directly, no monthly lease payment, and the battery's economic case rests on structural value — cohort-aware bill math, rate-trajectory protection, system takeover bundle, and resilience — not on incentive stacking."

Honest, disarms expectation issues, and doesn't manufacture incentives that don't exist.

VPP / Future Income — Negative Finding

Duke Energy Kentucky does not currently offer a residential battery VPP or DR program. The Power Manager smart-thermostat DR program ($75 enrollment + $25/yr) is not a battery program.

Forward read: Duke operates the PowerPair battery rebate + Tesla VPP partnership in North Carolina only (not Florida — Duke FL has no residential battery program). The regulatory and capacity-cost dynamics in PJM Zone DEOK point toward eventual launch in KY — but it's not happening today. Customers with batteries installed are first in line if Duke KY launches a battery program later.

Don't pitch this as guaranteed future income. Pitch it as "you're prepared for a program if it launches; you're not banking on one."

The Inverter Hidden Risk

Most homeowners don't realize how exposed they are without a service relationship.

• Typical inverter failure window: 8-15 years for SolarEdge string inverters; 10-20 years for Enphase microinverters
• Replacement cost out of pocket: $3,000-$5,000+ if out of warranty
• The catch most don't learn until they need it: when the inverter fails and the original installer is gone, finding someone willing to handle the warranty claim and replacement is hard. Most installers refuse work on someone else's system.

With Top Tier, you're not on your own with it. Whenever a manufacturer warranty claim is needed — on the new battery or the existing panels and inverter — Top Tier coordinates it at no cost. And on top of equipment's existing manufacturer warranties, every installation includes a 5-year Align Solar Protection service contract at no extra cost, covering existing solar equipment for mechanical breakdown, parts and labor, with $0 deductible. Coverage is confirmed through a system inspection.

Loan Economics

Service Finance loan structure for the backup-capable configuration (KY default):

Note: Service Finance loans cannot be re-amortized. Extra payments shorten the loan term but do not lower the monthly payment.

The self-consumption configuration runs slightly lower. Reps quote backup-capable as the default for KY (Northern KY winter peak risk + summer storm exposure both warrant backup).

Objection Handling

"What if I sell the house before the loan is paid off?"

"Solar plus battery raises your home's value at sale. Your closing equity pays off whatever's left on the loan, so the new owner inherits a fully-owned system with no payment to take over. Most warranties carry over: Top Tier's 10-year workmanship and roof penetration warranty transfers to the new owner with written consent (we coordinate this at closing), and the manufacturer warranties on your inverter and battery transfer per the manufacturers' own terms. The 5-year Align Solar Protection service contract is non-transferable — the seller benefits from the inspection and 5-year coverage. The next owner gets a turnkey, manufacturer-warrantied home with severe-weather backup built in; you get a higher sale price. Important Kentucky-specific note for NM I customers: NM I grandfathering forfeits on property transfer per KY PSC rules. The new owner will roll to NM II regardless of when the system was first interconnected. That's actually a REASON to add the battery now — it's how you preserve self-consumption value through the regime change."

"What if my inverter fails after you install the battery?"

"Manufacturer warranty coordination is included — Top Tier handles the claim and the replacement labor. If it's under warranty, you're not paying out of pocket. If it's out of warranty, you have a known service path with us (you're not chasing a company that's out of business). The Align contract covers mechanical breakdown of the existing equipment for the first 5 years."

"I'm on NM I. Why do I need a battery?"

"You're on NM I today because you installed before January 1, 2025 AND you're the original owner. That's a favorable position. Two things to think about: First, your NM I grandfathering forfeits if you sell the house. The next owner rolls to NM II. Adding the battery now means the buyer inherits a system that's already valuable under either tariff. Second, NM I grandfathering runs 25 years from your install date, not perpetually. A 2020 install loses grandfathering around 2045. The battery hedges both transitions — and it brings resilience and the inspection/takeover value regardless of cohort."

"I'm on NM II. Doesn't that mean the math is bad?"

"It means the bill math actually WORKS for you in a way it doesn't for NM I customers. Under NM II, every kWh you export gets credited at well below retail — but every kWh you import costs you full retail (~12.2¢). The battery captures that spread by self-consuming what you'd otherwise export. NM II customers are the ones who get active bill savings starting day one of install."

"What about the 30% federal tax credit?"

"It expired December 31, 2025 for direct purchases. Some lease and PPA models still qualify at the leasing-company level. For cash or financed purchases like ours, there's no federal credit on a 2026 install. Kentucky doesn't have a state credit either — South Carolina has one, KY doesn't. The case rests on structural value, not incentive stacking."

"Why not wait until Duke KY launches a battery program?"

"Three reasons. First, Duke runs the PowerPair battery program in NC but hasn't filed for one in KY — there's no announced timeline. (Duke FL doesn't have a residential battery program either, so we're not even adjacent to a Duke battery program in the southeast.) Second, when programs do launch in other markets, capacity is typically capped, and customers who already have batteries installed are first in line. Third, the bill-math and resilience case doesn't depend on a program existing. The program would be additional upside on top of the case we've already walked through."

What To Say · What NOT To Say

Key Disclosures for Kentucky Customers

Reps must surface these before close. Most are on the customer-facing PDF; reps should be able to articulate them out loud.

1. NM I grandfathering forfeits on property transfer. Pre-Jan 1, 2025 NM I grandfathered status is tied to the original interconnection customer. If the property changes ownership, the new owner rolls to NM II regardless of when the system was first interconnected.
2. NM I grandfathering runs 25 years from interconnection. Not perpetual. A 2020 install loses grandfathering around 2045.
3. NM II export-credit value: Duke KY Rider NM-2 residential 6.2924¢/kWh (non-residential 6.3255¢/kWh). Set by KY PSC Order in Case 2023-00413 (October 11, 2024, Appendix), effective January 1, 2025. Flat per-kWh rate, dollar-denominated credit (not 1:1 kWh netting). Among the four KY utilities, Duke KY is the lowest (LG&E 6.924¢, KU 7.366¢, Kentucky Power 9.746¢). Duke KY filed Case 2025-00258 in August 2025 seeking an NM-2 rate adjustment — pending as of this commit. Verify against the customer's recent bill before locking precise math.
4. No residential battery rebate or battery VPP from Duke KY. Power Manager thermostat DR is not a battery program.
5. No Kentucky state tax credit, sales-tax exemption, or property-tax exemption for residential solar.
6. Federal ITC expired December 31, 2025. No KY state extension. Lease/PPA structures may still qualify through commercial ITC.
7. Duke KY rate trajectory: ~31% nominal climb 2020-2026 (~4.6%/yr CAGR). Most recent: Dec 2025 rate case approved 9.61% increase ($43.7M).
8. Battery duration depends on the loads it powers. 10 kWh battery = 18-30 hr of critical loads without solar recharge; not whole-home backup for sustained outages.
9. Service Finance loans cannot be re-amortized. Extra payments shorten term, not monthly payment.
10. 10-year workmanship warranty is contingent on inspection acceptance. If the existing system has issues we can't take over, written notice within 7 days.
11. Inverter failure timing is statistical, not guaranteed. $3-5K replacement-cost estimate based on typical SolarEdge (8-15 yr) and Enphase (10-20 yr) failure windows.

Recent Duke KY Outage Events (Reality Check for Resilience Pillar)

Reps cite these to ground the resilience case in events the customer probably remembers:

1. June 13-14, 2022 — Severe Wind Storm. Duke's most significant outage event in over a decade for Cincinnati / Northern Kentucky. 70-80 mph winds; ~232,000 customers affected at peak across Zone DEOK. Boone, Kenton, Campbell counties heavily impacted.
2. September 27, 2024 — Hurricane Helene Remnants. Helene's winds and rain hit the Tri-State. >100,000 customers without power; thousands in Northern KY (Florence, Union, Fort Mitchell, Fort Wright, Covington, Fort Thomas, Cold Spring).
3. April 2-3, 2025 — Severe Windstorm. 80-100 mph winds across Duke OH/KY. ~104,000 peak outages. Restoration of final 31,000 customers into April 4.
4. June 2025 — Severe Summer Storm. ~48,000 peak outages across Duke OH/KY; 41,000+ restored within ~24 hours.

Four major outage events in three years in the Cincinnati / Northern KY footprint. The pattern is real; reps don't need to over-sell it.

Walk-Away Profiles

When the deal doesn't fit, walk away cleanly. None of these are tenure-based.

• Customer has no existing solar. Top Tier specializes in battery added to existing solar. New solar + battery is a different conversation we don't quote today.
• Customer's existing solar is a lease or PPA. The third-party lease/PPA structure complicates the takeover. Document the situation, route to Todd for case-by-case decision.
• Customer can't articulate any of the four pillars after a 30-min conversation. Not the right fit; the pitch isn't landing for reasons we can't address in one call.
• Customer demands a verified Duke KY NM II export rate that we haven't yet confirmed. Honest answer: the methodology is PSC-approved; the specific ¢/kWh isn't on our published verified list yet. We can pull the customer's recent bill to find it. If the customer wants to wait until we've confirmed via Duke directly, that's fine — we'll follow up.

The 5-year Align contract is the seller's benefit; the takeover value transfers via a different mechanism. Don't conflate them when answering "what carries over."

TODO / Follow-Up

• Monitor KY PSC Case 2025-00258. Duke KY filed an NM-2 rate-adjustment application August 4, 2025. As of this commit the only PSC order in the docket (March 11, 2026) is a confidentiality ruling only — not a rate change. The currently-effective Rider NM-2 rate (6.2924¢/kWh residential, set in Case 2023-00413 Oct 11, 2024 order) remains in effect. When/if a new rate order issues in Case 2025-00258, flip the value in lib/markets/ky.ts and the customer-facing copy here.
• Optional second utility expansion: LG&E, KU, Kentucky Power are out of scope for the initial Duke KY launch. If rep demand surfaces, add as additional MarketUtility entries under KY_MARKET; the Market wrapper stays unchanged.
• Rep field validation: Duke KY rate scenarios (3/5/7) are conservative working assumptions per Phase A research. Refine after a quarter of rep feedback.
• Watch for Duke KY battery program announcement. Duke runs PowerPair + Tesla VPP partnership in NC only (Duke FL has no residential battery program). PJM Zone DEOK dynamics point toward KY launch eventually. Flip the VPP framing copy when that happens.