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- HB 227 seeks to protect all customers from unfair costs caused by outdated net metering policies.