Resource Page on House Bill 227 (Anti-Net Metering Legislation)

Actions you can take on HB227:
  • Watch for new action alerts  to show your opposition to HB 227 and support for Kentucky’s local solar industry. See KCC’s Alert Page 
  •  Call the Legislative Message Line at 1-800-372-7181 and leave a message for the full Senate and members of the Senate Natural Resources & Energy Committee that you oppose HB227.
  •  Go to the Capitol to lobby legislators in-person. Lobbyists for the Kentucky Conservation Committee, a nonprofit legislative support organization, will be at the Capitol to assist citizens who wish to meet with their legislators on this bill. Please contact KCC at 502-209-9659 or email KCC if you wish to meet legislators in person on this bill.
  • Plan on coming to the Senate Natural Resources & Energy Committee Meeting on Wednesday, March 21 at 11AM at the Capitol Annex.
Solar Jobs at Risk from HB 227, a bill that will fundamentally change net metering laws
Last February Kentuckians defeated an attempt by utilities to end net metering and undermine Kentucky’s emerging solar industry. Now the utilities are back again with HB 227. Below are articles and resources on this anti-net metering legislation. The bill passed the House on a vote of 49-45. The bill is now going to the Senate Natural Resources & Energy Committee.
The version which passed the House is House Committee Substitute 2.
HCS2 – Retain original provisions; require the Public Service Commission to set the compensation rate for eligible customer-generators according the ratemaking processes in KRS Chapter 278; specify that retail electric suppliers are entitled to implement rates to recover all costs from eligible customer-generators for providing service to them, including fixed and demand-based costs, and regardless of rates for non-participating customers; allow lessees, successors, or assignees of eligible customer-generators, as well as subsequent owners of premises owned by eligible customer generators taking net metering service on December 31, 2018, to maintain the same net metering rates as the eligible customer generator until December 31, 2043, or until they stop taking net metering service; EFFECTIVE January 1, 2019.
HB 227 passed the House Wednesday on a 49 – 45 vote and now moves to the Senate. The final version passed by the House differs significantly from the original but would still radically change net metering and undermine the growth of solar in Kentucky.

Please call the Legislative Message Line at 1-800-372-7181 to leave a message for all Senators and urge them to oppose HB 227. Tell them this bill was not a compromise and will undermine Kentucky’s solar businesses.

HB 227 directs the PSC to allow utilities to recover all costs of service from net metering customers and would enable utilities to do that through their rate cases. This means potentially 23 rate cases recurring at regular intervals, an enormous burden for solar advocates to cope with. We have advocated for one administrative case before the PSC to resolve the issue in an equitable manner, based on the evidence, including consideration of the costs and benefits provided by solar. HB227-HCS2 does not do this.

Read the final bill (HB 227- HCS2) here:

CRITICAL PROBLEMS WITH HB 227/HCS2 – the Anti-Solar Net Metering Bill

HB 227/HCS2 was NOT a compromise negotiated in good faith with the solar industry. It DOES NOT address our fundamental concerns and would radically undermine Kentucky’s young solar industry.

  1. UNFAIRNESS – HB 227 is UNFAIR to solar businesses and Kentuckians who support using solar energy. It is a one-sided bill that favors only utilities – allowing them to recover costs without considering the benefits of solar to the utility or ratepayers.
  2. REGULATORY BURDENS – HB 227 would burden the solar industry and PSC with 23 recurring rate cases and will result in hundreds of thousands of dollars in recurring PSC litigation costs.
  3. ENSURING UNCERTAINTY FOR CUSTOMER INVESTMENTS – This bill allows frequent, recurring rate cases that could change the terms of net metering for existing and future customers and offers no language to protect customer investments. If customers don’t know how their net metering rate might change in the future, it becomes impossible to predict the value of an investment. This would ruin the market for rooftop solar.
  4. CLAMPING DOWN ON MARKETS – The last-minute changes to HB 227 made it even worse by imposing a hard cap of 1% on the solar market for every utility. This restriction is the exact opposite of the solar industry’s goal (and the desire of many Kentuckians), which is to expand the solar market.
  5. TILTING THE PLAYING FIELD FURTHER IN FAVOR OF UTILITIES – The solar industry seeks a level playing field to compete with utilities via increasing system sizes, and access to leases, PPA’s, and other tools. This bill does not address any of these concerns. It only serves the utilities’ interests.
  6. RADICALLY DE-VALUING SOLAR – HB 227 radically changes how net metering operates. Rather than crediting customers for their net energy generation on a monthly basis, HB 227 would enable utilities to use “instantaneous” netting, de-valuing all solar energy supplied to the grid. This further de-values a customer’s solar investment.
  7. RISKS TO EXISTING NET METERING CUSTOMERS – HCS 4 does not clearly grandfather existing customers, who installed their solar arrays assuming they would receive a retail one-to-one credit for all electricity fed into the grid.
  8. A FALSE PRETENSE OF COMPROMISE – HCS2 created the false pretense of meeting the solar industry’s concerns by directing this issue to the PSC, but it failed to create a fair and reasonable process to resolve the issue. Establishing an unclear, unfair, costly, and burdensome process that favors only the utilities, while immediately disrupting the solar market and restricting its long-term growth is not the result of compromise.

WE SUPPORT ONE Administrative Case before the PSC to resolve the issue of how to value customer-owned solar energy, considering costs and benefits, resulting in a fair and equitable solution for all parties. All utilities would be party to this one case, which should be resolved before any changes are made to net metering.


Published Articles on HB227 Supporting Homegrown Solar:


Fact Sheets and public-resource handouts on HB227: