For non-utility owned, residential generating facilities of less than 100 KW, such as roof-top solar panels, Kentucky HB 227 purports to reimburse the utility for excess generation returned. The present system credits the homeowner for excess generation, which flows to the grid with little, if any, utility participation. The utility’s costs involve only accounting for this power.
Should lawmakers wish to reward the utility for this activity, I’d suggest that the homeowner-generator get no less than an 85 percent credit for the excess generation. This provides the utility with a 17.6 percent profit on the transferred generation. In addition, no additional fees should be assessed for the net metering unit. Please advise your lawmakers and the Kentucky House Natural Resources and Energy Committee to either dismiss this bill or limit it as described above.
I have no connection with either the Kentucky electric utilities or any generating homeowner.