Why is private solar reform needed in Kentucky?

Posted | February 9, 2018
  • House Bill 227 (HB 227) will still allow solar to thrive in Kentucky and protect non-solar customers.
  • Current private solar net metering customers are grandfathered.
  • Future private solar net metering customers would still receive credit for excess energy.
  • Tell your elected officials you support private solar reform.

Support House Bill 227 (HB 227) and help grow private solar net metering so everyone benefits.

Solar energy is a growing part of our nation’s energy mix. More and more, customers are using private solar panels to generate electricity and, depending on how much energy is produced, deliver the excess back to the energy grid and receive credits for it.

LG&E and KU think that’s a good thing. But, the sun doesn’t shine 24/7. And, when the sun isn’t shining, private solar customers must depend on the energy grid to reliably supplement their energy needs around the clock.

Unfortunately, due to an outdated private solar net metering policy in Kentucky, participating customers receive credit for the excess energy they generate at a “retail” rate. This includes not only the cost of the energy they produce, but also a portion of the fixed costs that make the energy grid safe, reliable, and able to accommodate private solar installations.   

This means that under the current policy -- that was introduced 14 years ago -- private solar customers are paying less than their fair share to use the energy grid to which they’re always connected. Everyone else – including those who don’t want or can’t afford private solar installations – has to pay more to make up the difference.

On Jan. 22, State Representative Jim Gooch introduced House Bill 227 that would update Kentucky’s outdated net metering law.

This is important to Kentuckians because:

  • It protects existing net metered private solar generators, who helped foster the growth of renewable energy, by grandfathering them in for 25 years.
  • It protects those who cannot afford private solar who are currently subsidizing private solar generators by paying the “fixed” cost of delivering energy; and
  • It ensures that future solar customers more fairly share in the costs necessary to maintain the energy grid.

Kentucky is not alone; across the nation, many states have already reformed policies to ensure everyone shares equally in the cost of maintaining a safe and reliable energy grid.

At LG&E and KU, we’re offering interested customers more renewable energy options and support the growth of solar in a sustainable way.  

Visit this website to let your elected official know you support private solar reform.

Support private solar reform