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Incentives/Policies for Renewables & Efficiency

Printable Version
Interconnection Standards   

Last DSIRE Review: 08/21/2014
Program Overview:
State: Kentucky
Incentive Type: Interconnection
Eligible Renewable/Other Technologies: Photovoltaics, Wind, Biomass, Bio-gas, Small Hydroelectric
Applicable Sectors: Commercial, Industrial, 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
Standard Agreement:Yes
Insurance Requirements:"Additional" liability insurance not required for systems that meet certain technical standards
External Disconnect Switch:Utility's discretion
Net Metering Required:Yes
Web Site:
Authority 1:
Date Enacted:
Date Effective:
KRS ยง 278.465 et seq.
04/22/2004 (amended 2008)
07/13/2004 (amendments effective 07/15/2008)
Authority 2:
Date Enacted:
KY PSC Order 2008-00169

In April 2008, Kentucky enacted legislation which required the Kentucky Public Service Commission (PSC) to develop interconnection and net metering guidelines for all retail electric suppliers operating in Kentucky (excluding TVA utilities). The Kentucky PSC adopted those guidelines on January 8, 2009 (Order 2008-00169).

The PSC's rules set forth a two-tiered approach to simplify the interconnection process:

  • Level 1: applies to inverter-based systems up to 30 kilowatts (kW) in capacity, certified to the UL 1741 and complying with IEEE 1547. Systems cannot require the utility to make modifications to its system in order to be interconnected (the PSC guidelines provide additional technical requirements that must be met for Level 1 applications; see the order for details). Utilities must notify the customer within 20 business days whether the interconnection application has been approved or denied. There are no application fees or related fees for Level 1 interconnection.
  • Level 2: applies to systems that are not inverter-based or that use equipment not certified as meeting UL 1741 or for systems that fail to meet the other technical requirements outlined for Level 1 Applications. The utility has 30 business days to process a Level 2 application. Utilities may require customers to submit an application fee of up to $100 for processing and inspection purposes. If the utility determines that an impact study is needed, the customer is responsible for costs up to $1,000 for the initial impact study.

Utilities, at their own discretion, may require an external disconnect switch or waive the requirement for systems approved at either application level. In addition, customers must maintain general liability insurance coverage (e.g., a standard homeowner’s or commercial policy) for their systems. The PSC has ruled that the customer retains any and all renewable-energy credits (RECs) associated with the generation of renewable energy.

Note: A utility may negotiate a contract for interconnection with a merchant or co-generation electric generating facility with a capacity of up to 10 megawatts. This customer would most likely incur some significant initial costs for equipment, possible grid/line upgrades, safety devices, and insurance, for example. By law, larger systems may establish interconnection, however only after receiving approval from the PSC/Siting Board (See KRS § 278.212. KY PSC Order 2008-00169 only covers interconnection as it applies to net-metered systems).

  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:
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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.