Understanding the new net metering rule

In a significant development for reducing electricity costs, the government has approved net metering rules. This is excellent news for homes and businesses that generate their own renewable energy and are connected to the electricity grid. Such prosumers, who both generate their own electricity and purchase from Kenya Power, can now sell any extra power they don’t use back to the grid, effectively reducing their energy bills.

How will the new metering system work? Under the new regulations, prosumers will be seamlessly integrated into the national power grid. This integration is facilitated through specialized meters that accurately monitor the amount of electricity prosumers both purchase from and sell back to Kenya Power. These meters serve as a two-way channel, recording the quantity of power flowing in both directions.

Cost saving for solar power system owners

How will the net metering rule benefit owners of mini solar power plant owners? For solar system owners, the net metering rule presents a significant advantage. Particularly, this is beneficial for those with grid-tied solar system setups with limited battery storage capacity.

Plot shows electricity generated in Kenya by source.
Figure 1: A plot showing electricity generated by source over time in Kenya from 2000 to 2023. Data Source: ember-climate.org

With this regulation in place, prosumers can effectively utilize the grid as a storage solution for surplus energy generated throughout the day. This means that any excess power produced can be seamlessly fed back into the grid. Consequently, solar system owners can maximize the value of their investment in solar power energy without the need for extensive battery storage infrastructure.

Under the net metering regulations, prosumers won’t receive direct payments for the electricity they supply to the grid. Instead, any surplus power they generate and send to Kenya Power will be credited against their future electricity bills. This means that excess energy produced by prosumers will reduce the cost of the power they purchase later, leading to potential savings on their overall energy expenses.

Curious about the tariff for your surplus power under the new regulations? The electricity you generate and send back to Kenya Power will be credited at the same rate you pay for the power you consume. This fair exchange will allow prosumers to offset their future bills effectively without any complicated rate differences.

The new regulation requires prosumers to cover the cost of installing additional components needed to sell power to Kenya Power. Consumers with grid-tied solar systems will need only minimal modifications to comply. However, customers with off-grid solar systems will need slightly more extensive modifications. This includes installing a grid-tied inverter to connect and sell their surplus power to the national grid.

Cut electricity bills by installing a solar power system

The net metering regulation makes installing solar even more attractive. By reducing reliance on the grid and offering the possibility to sell excess generated electricity back to Kenya Power, prosumers can maximize their savings and enhance their energy independence. This added benefit makes solar investment more attractive and beneficial for both households and businesses.

Are you considering installing solar and looking for a reliable solar installation company? Look no further. Kawiplus is a leading provider of solar installation services. We offer a range of solutions, including grid-tied solar systems, to meet your energy needs and help you maximize your savings.