Kentucky Passes Bill That Could Stall Residential Solar Growth

Kentucky lawmakers passed legislation on March 14 that would redefine net metering by requiring state regulators to set the compensation rate for solar customers through a ratemaking process. Retail electric suppliers would be entitled to implement rates to recover the costs incurred to serve customer-generators, including fixed and demand-based charges. (SB 100)

The bill would raise the maximum capacity of eligible systems to 45 kilowatts from the current level of 30 kilowatts. Existing systems would be grandfathered for 25 years under the current net metering program, which credits customers for excess generation at the utility’s retail rate.

The legislation contrasts with a measure approved by Maine legislators recently to reestablish net metering for consumers, doing away with the previous administration’s gross metering policy.