Kentucky
Incentives/Policies for Renewable Energy
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Last DSIRE Review: 02/04/2009
| Incentive Type: |
Net Metering |
| State: |
Kentucky |
| Eligible Renewable/Other Technologies: |
Photovoltaics,
Wind,
Biomass,
Hydroelectric,
Biogas,
Small Hydroelectric
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| Applicable Sectors: |
Commercial,
Residential,
Nonprofit,
Schools,
Local Government,
State Government,
Agricultural,
Institutional
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| 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 |
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Web Site: |
http://kysolar.org/net-metering
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Authority 1:
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KRS § 278.465 et seq.
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| Date Enacted: | 4/22/2004 (amended 2008) |
| Date Effective: | 7/13/2004 (amendments effective 07/15/2008) |
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Authority 2:
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KY PSC Order 2008-00169
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| Date Enacted: | 01/08/2009 |
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Summary:
In April 2008, Kentucky enacted legislation (SB 83) 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 have 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).
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Contact:
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John Shupp
Kentucky Public Service Commission
211 Sower Blvd., P.O. Box 615
Frankfort, KY 40602
Phone: (502) 564-3940
Fax: (502) 564-1582
E-Mail: john.shupp@ky.gov
Web Site: http://psc.ky.gov
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Andy McDonald
Kentucky Solar Partnership
2235 Gregory Woods Road
Frankfort, KY 40601
Phone: (888) 576-6527
Fax: (606) 256-2779
E-Mail: solar@kysolar.org
Web Site: http://kysolar.org/
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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