Net Metering Update in Kentucky
ICYMI: Net metering is under attack (again).
This time, it’s in Northern Kentucky, where Duke Energy Kentucky is seeking changes to the current 1:1 value for excess energy that solar customers send back to the grid.
This is one in a long line of attacks on net metering by Kentucky utility companies over the past several years. Since SB100 went into effect in 2020 and allowed utility companies to lodge rate cases with the Public Services Commission (PSC) to weaken the current 1:1 credit structure, many utility companies have done just that.
So, what do we know about these proposed changes to net metering in Northern Kentucky? What are the implications for current solar users–both residential and commercial? And how will it impact home and business owners in Kentucky interested in installing solar?
Today, we’re breaking down everything we know about the state of net metering for folks in Northern Kentucky, and sharing how the local solar experts at Solar Energy Solutions can help you make the most of solar incentives in Kentucky,
Proposed Changes to Solar Net Metering
Though many details are still forthcoming, here’s what we know now about Duke’s rate case and its implications for home and business owners who use solar:
- Duke is seeking to change the current 1:1 net metering rate.
- This would ultimately decrease the compensation home and business owners would get for the solar energy they send back to the grid.
- These changes would impact solar customers in their territory in Northern Kentucky.
- Existing solar customers would not be affected by these changes to net metering.
- Duke filed a rate case with the PSC in December 2022 that proposes an increase in electric rates. Net metering could be considered as part of that case or separately.
- If net metering changes are considered as part of this case, approved changes would go into effect after June 30, 2023.
- If net metering is considered separately, timing is unclear. We will keep you updated as the case evolves.
Consider These Options to Maximize Your Solar Savings
If you’re thinking about installing solar for your home or business, there are a few ways you can get the most out of your net metering potential, even if these changes go into effect.
- Install solar panels before June 30, 2023.
One of the biggest takeaways from these proposed changes? Those considering solar for their home or business would benefit from acting quickly. If these net metering changes go into effect, home and business owners who have their solar installations up and running by June 30, 2023, would receive the current 1:1 value for extra solar energy put into the grid.
That said, we know that isn’t a possibility for everyone. Read on for two possible solutions under a less-than-ideal net metering situation.
- Install a smaller solar system.
If the net metering situation is unfavorable, sending a lot of energy back to the grid doesn’t make a lot of sense. You can combat this by designing a solar system at a size that won’t produce a significant amount of excess power to feed back into the grid.
- Install solar battery storage.
By installing a battery, such as the Tesla Powerwall, as part of your solar energy system, you can store any excess energy that you produce. This way, you can avoid selling it back to the grid at an unfavorable rate, and you can rely on stored energy during power outages and/or times when your solar panels aren’t producing enough energy.
The Local Solar Experts at Solar Energy Solutions Are Here to Help
Solar Energy Solutions is committed to keeping you updated and helping you make informed decisions when laws and regulations that impact solar arise. We’ll continue to monitor this rate case with Duke Energy Kentucky closely and will provide further updates, especially when there’s an opportunity for you to reach out to your local state representative to provide testimony.
If you’re looking to install solar before these changes might take place, we provide excellent solar installation in Kentucky. We’ve helped homeowners and businesses in Lexington, Louisville, and the surrounding areas since 2006, with more than 2,500 installations to date across all our locations.