House Bill 227 seeks to update current "net metering" laws for private solar power generation for small scale systems. The current "net metering" law requires utilities to credit private solar developers generating 30 KW or less of solar power (i.e. residential, small commercial businesses) at 300% of the market value for the excess energy pushed back on the grid. Ultimately, the costs of net metering are paid by other customers on the utility grid through higher bills.
The goal of the legislation is to: 1) promote fairness in the system, 2) keep electricity rates affordable for all customers, and 3) prevent cost-spiking issues like those seen in other states where solar subsidies have significantly increased costs for residents or businesses who do not generate solar power.
Why to Support HB 227:
The goal of the legislation is to: 1) promote fairness in the system, 2) keep electricity rates affordable for all customers, and 3) prevent cost-spiking issues like those seen in other states where solar subsidies have significantly increased costs for residents or businesses who do not generate solar power.
Why to Support HB 227:
- HB 227 reduces the subsidy that credits rooftop solar at 300% of the value of energy in Kentucky. It provides a credit that will continue to support solar power generators but avoid costly increases for other customers.
- The bill does not put an end to rooftop solar.
- It holds harmless all existing net metered customer systems and rates. The modernization only applies to new systems generating 30 KW or less of solar power. New generators will still receive a 1:1 credit for the power they use, but any excess power they feed onto the energy grid will be valued the same as any other energy the utility must purchase -- at the average wholesale rate.
- HB 227 seeks to protect all customers from unfair costs caused by outdated net metering policies.
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