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Incentives/Policies for Renewables & Efficiency

Printable Version
Net Metering   

Last DSIRE Review: 08/21/2014
Program Overview:
State: Kentucky
Incentive Type: Net Metering
Eligible Renewable/Other Technologies: Photovoltaics, Wind, Biomass, Hydroelectric, Biogas, Small Hydroelectric
Applicable Sectors: Commercial, Residential, Nonprofit, Schools, Local Government, State Government, Agricultural, Institutional
Applicable Utilities:Investor-owned utilities, electric cooperatives (except TVA distribution utilities)
System Capacity Limit:30 kW
Aggregate Capacity Limit:1% of utility's single-hour peak load during previous year
Net Excess Generation:Credited to customer's next bill at retail rate; carries over indefinitely
REC Ownership:Customer owns RECs
Meter Aggregation:Not addressed
Web Site:
Authority 1:
Date Enacted:
Date Effective:
KRS ยง 278.465 et seq.
4/22/2004 (amended 2008)
7/13/2004 (amendments effective 07/15/2008)
Authority 2:
Date Enacted:
KY PSC Order 2008-00169

In April 2008, Kentucky enacted legislation that expanded its net metering law by requiring utilities to offer net metering to customers that generate electricity with photovoltaic (PV), wind, biomass, biogas or hydroelectric systems up to 30 kilowatts (kW) in capacity. The Kentucky Public Service Commission (PSC) issued rules on January 8, 2009. Utilities had 90 days from that date to file tariffs that include all terms and conditions of their net metering programs, including interconnection.

Net metering is available to all customers of investor-owned utilities and rural electric cooperatives, exempting TVA utilities. Kentucky's requires the use of a single, bi-directional meter for net metering. Any additional meter, meters or distribution upgrades needed to monitor electricity flow in each direction will be installed at the customer's expense. If the electricity fed back to the utility by the customer exceeds the electricity supplied by the utility during a billing period, the customer is credited for excess generation at the utility's retail rate. This credit will appear on the customer's next bill and will carry forward indefinitely. Credits are not transferable. The customer retains ownership of any Renewable Energy Credits.

If the cumulative generating capacity of net-metered systems reaches 1.0% of a utility's single-hour peak load during the previous year, the PSC may limit the utility's obligation to offer net metering. When time-of-day or time-of-use metering is used, the electricity fed back to the grid by customers is net-metered and accounted for at the specific time it is fed back to the grid in accordance with the time-of-day or time-of-use billing agreement currently in place.

The PSC order also included interconnection standards for net-metered systems. According to the state's net-metering statute, systems and interconnecting equipment must meet all applicable safety and power quality standards established by the National Electrical Code (NEC), the Institute of Electrical and Electronics Engineers (IEEE), and accredited testing laboratories such as Underwriters Laboratories (UL).

  John Shupp
Kentucky Public Service Commission
211 Sower Blvd., P.O. Box 615
Frankfort, KY 40602
Phone: (502) 564-3940
Fax: (502) 564-1582
Web Site:
  Andy McDonald
Kentucky Solar Partnership
2235 Gregory Woods Road
Frankfort, KY 40601
Phone: (888) 576-6527
Fax: (606) 256-2779
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.