Net Metering

afdb5a_3c17eab15ef74a2c94181062790f54fa.png_srz_p_215_226_75_22_0.50_1.20_0Net Metering is the billing arrangement which allows a solar powered customer to receive credit on their electric bills for the electricity that they send out to the electrical grid, beyond what is used by their house or business.

As a customer of LG&E-KU you can benefit by receiving credit for the excess solar power you produce.  Net metering is allowed by state law if your system is no more than 30kW, and the great majority of residential systems are approximately 5kW.

How this works is fairly simple.   During the times of the day when your solar PV system generates more power than you use, you will send the excess electricity to the grid via the electrical interconnection.  Your electricity meter automatically keeps track of how much electricity went out.

Your utility statement will show how much this credit is each month.  In cloudy winter months, if you use more than you generate, you will use up some of your accumulated credits, (assuming that you have actually generated some credits, and you will have if your system is sized correctly).

afdb5a_977b18de14694d74a777c34a0df85cc8.jpeg_srz_p_264_188_75_22_0.50_1.20_0The LG&E-KU web site has their information about  net-metering at There you can download a pdf file with the regulations pertaining to net metering which have been created by the Public Service Commission.

You can also sell your total energy credits as Solar Renewable Energy Credits (SRECs) for added revenue that, along with tax credits and reduced utility bills, will help to offset the initial investment costs for your system. Ohio is one market where KY SRECs can be sold.

Most U.S. states have adopted net-metering policies (see DSIRE –  Net Metering Policies Map). Kentucky currently has a maximum limit of 30kW system generating capacity for system owners to have net-metering.  Legislation to expand this limit was rejected in the 2016 legislative session.