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Kenyans now have the opportunity to reduce their electricity bills by selling excess power to Kenya Power, thanks to the newly implemented Energy (Net Metering) Regulations 2024.
The regulations, which were gazetted in June this year by the former Department of Energy, allow individuals who generate their own electricity and connect to the national grid to sell their surplus energy.
Under this system, consumers can install renewable energy sources such as solar panels or wind turbines at their homes or businesses. Their properties are still connected to the national grid, and they can either draw power from the grid or feed excess power back to the grid. This setup eliminates the need for expensive battery storage systems.
For example, a residential customer with a solar power system may generate more electricity during the day than the home consumes. When the home is net metered, the meter will run in reverse, generating credits to offset the electricity used at night or during periods when the home’s consumption exceeds the system’s output.
A bidirectional meter installed for this purpose tracks the electricity flowing into and out of the property. The meter records both electricity generated and used, ensuring that customers are only charged for their net energy usage.
If a property produces more electricity than it consumes from the grid, the owner will receive a credit from Kenya Power equal to half of what they paid for electricity. Kenya Power explained that these credits can reduce future bills but will expire at the end of the financial year on June 30.
qualifications
To qualify for net metering, consumers must generate electricity from renewable sources such as solar, small hydro or wind. Single-phase domestic consumers can connect up to 4 kW, and three-phase consumers can connect up to 10 kW. Commercial and industrial consumers can deliver up to 1 MW of electricity to the grid.
Interested individuals must apply through Kenya Power or their respective retailers. Applications will be processed on a first-come, first-served basis.
The Energy and Petroleum Regulatory Authority (EPRA) will issue licenses for a total capacity of 100 MW.
Approved applicants must sign a net metering agreement and install the necessary equipment within six months. They are responsible for the costs of installing, commissioning and connecting the meter to the Kenya Power network.
The license issued is valid for five years.
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