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Incentives/Policies for Renewables & Efficiency

Printable Version
Net Metering   

Last DSIRE Review: 08/13/2014
Program Overview:
State: Kansas
Incentive Type: Net Metering
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Small Hydroelectric, Fuel Cells using Renewable Fuels
Applicable Sectors: Commercial, Industrial, Residential, Schools, Local Government, State Government, Fed. Government, Agricultural, Institutional
Applicable Utilities:Investor-owned utilities
System Capacity Limit:200 kW for non-residential; 25 kW for residential (before July 1, 2014)
100 kW for non-residential; 15 kW for residential; 150 kW for schools (on or after July 1, 2014)
Aggregate Capacity Limit:1% of utility’s retail peak demand during previous year
Net Excess Generation:Credited to customer's next bill at the retail rate if system began operating before July 1, 2014 and at the average cost rate if system began operating on or after July 1, 2014; NEG expires on March 31 each year
REC Ownership:The estimated generating capacity of all net-metered facilities counts toward the affected utility's compliance with Kansas's RPS. If a generator's capacity is being utilized towards a utility's RPS compliance, neither the utility nor the customer-generator may sell any associated RECs.
Web Site:
Authority 1:
K.S.A. 66-1,184
Authority 2:
Date Enacted:
Date Effective:
K.S.A. 66-1263, et seq.
Authority 3:
Date Enacted:
K.A.R. 82-17-1, et seq.
Authority 4:
Date Enacted:
Date Effective:
H.B. 2101

Note: In April 2014 H.B. 2101 substantially modified Kansas’s net metering and interconnection rules, creating different rules for renewable energy systems beginning operation on or after July 1, 2014.

Kansas adopted the Net Metering and Easy Connection Act in May 2009, which established net metering for customers of investor-owned utilities (IOUs). 

Eligibility and Availability

All IOUs in Kansas—Westar, Kansas City Power & Light, and the Empire Power District—are required to offer net metering, and some electric cooperatives have voluntarily created net metering provisions for their customers. IOUs are required to offer net metering on a first-come, first-served basis until the rated generating capacity of all net-metered systems equals 1% of the utility's peak demand during the previous year.

Net metering applies to systems that generate electricity using solar, wind, methane, biomass, or hydro resources, and to fuel cells using hydrogen produced by an eligible renewable technology. The estimated generating capacity of all net-metered systems may count towards the utility’s renewable capacity requirement under Kansas's renewable portfolio standard (RPS), with each kilowatt (kW) of nameplate capacity that is net metered counting as 1.10 kW toward a utility’s compliance with the RPS; net-metered renewable energy used for RPS compliance may not be used to generate renewable energy credits.

Eligible systems in operation prior to July 1, 2014, must have a rated capacity of:

  • 25 kW or less for residential customers and
  • 200 kW or less for non-residential customers.

Eligible systems in operation on or after July 1, 2014, must have a rated capacity of:

  • 15 kW or less for residential customers,
  • 100 kW or less for non-residential customers, and
  • 150 kW for any postsecondary educational institution or any public or private school which provides instruction for students enrolled in grade kindergarten or grades one through 12.

IOUs must provide net-metered customers with a bi-directional meter at no cost to the customer. IOUs are prohibited from charging net-metered customers any additional standby charges, capacity charges, interconnection charges or other fees that a customer would not incur if the customer did not participate in net metering if the customer began operating a renewable energy resource under an interconnect agreement with a utility prior to July 1, 2014. IOUs may propose (through a rate proceeding) an alternative rate structure for customer-generators who begin operating a renewable energy system on or after July 1, 2014. This includes a time-of-use rate, minimum bill, or another rate structure for these customers.

Net Excess Generation

If a customer-generator produces more electricity than is consumed during a monthly billing period, the net excess generation (NEG) will be credited to the customer-generator at one of two types of rates, depending on when the renewable energy resource began operating:

  • For renewable energy resources that began operating before July 1, 2014, all NEG, expressed in kilowatt-hours (kWh), is carried forward from month-to-month and credited at a ratio of one-to-one against the customer-generator’s energy consumption, expressed in kWh, in subsequent months. This credit is equivalent to a retail rate of electricity.  
  • For renewable energy resources that began operating on or after July 1, 2014, all NEG remaining in the customer-generator’s account at the end of each billing period is credited to the customer at a rate of 100% of the utility’s monthly system average cost of energy per kWh.

Beginning on January 1, 2030, all NEG will be carried forward at the utility’s monthly system average cost of energy per kWh, regardless of when the customer began operating the renewable energy resource. NEG remaining in the customer's account expires on March 31 of each year.

Parallel Generation (Alternative to Net Metering)

Customer-generators in Kansas can choose to interconnect under a parallel generation contract with utilities instead of net metering (K.S.A. 66-1184). Utilities that provide retail electric services in Kansas—including IOUs, electric cooperatives (defined by K.S.A. 17-4603), non-stock member-owned electric cooperative corporations, and municipally-owned or operated utilities—are required to enter into a parallel generation contract with eligible customer-generators if requested in writing.

Under a parallel generation contract between a utility and a generator with a capacity of 200 kW or less, electricity exported by the customer-generator to the utility is sold at a rate of 150% of the utility’s monthly system average cost of energy per kWh, and any electricity imported by the customer-generator from the utility is purchased at the retail rate. Unlike net metering, electricity generation and consumption are time-sensitive and there is no “banking”. A utility may credit the customer’s account or pay the customer at least annually or when the total compensation due equals $25 or more.

System capacity limitations for entering into a parallel generation contract are 25 kW for residential customers, 200 kW for commercial customers, and 1.5 MW for Cloud county community college and Dodge City community college. A utility not obligated to purchase an amount greater than 4% of its peak power requirements.


More information on utility net metering policies and interconnection guidelines are available on the following utility websites:

  Kansas Corporation Commission
Energy Division
1500 SW Arrowhead Road
Topeka, KS 66604-4027
Phone: (785) 271-3170
Fax: (785) 271-3268
Web Site:
NCSU - home
Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.