Kenyans now have the opportunity to lower their electricity bills by selling excess power to Kenya Power, thanks to the newly implemented Energy (Net-Metering) Regulations, 2024.
These regulations, which were gazetted in June by the former Energy CS, allow individuals who generate their own electricity and are connected to the national power grid to sell their surplus energy.
Under this system, consumers install renewable energy sources like solar panels or wind turbines in their homes or businesses. Their property remains connected to the national grid, enabling them to both draw electricity from and feed surplus electricity back into the grid. This setup eliminates the need for expensive battery storage systems.
For example, a residential customer with a solar power system may produce more electricity during the day than the home consumes. When the home is net-metered, the electricity meter will run backward, generating credits that offset the electricity used at night or during periods when the home’s consumption exceeds the system’s output.
A bi-directional meter, installed for this purpose, tracks electricity flowing both into and out of the property. This meter records the amount of electricity generated and consumed, ensuring that customers are billed only for their net energy use.
If a property produces more electricity than it consumes from the grid, the owner will receive credits worth half the price they pay for electricity from Kenya Power. Kenya Power explained that these credits can reduce future bills but will expire at the end of the financial year on June 30.
Qualification
To qualify for net-metering, consumers must generate electricity from renewable sources such as solar, small hydropower, or wind. Single-phase domestic consumers can connect up to 4 kW, while three-phase consumers can connect up to 10 kW. Commercial and industrial consumers can feed up to 1 MW into the grid.
Interested individuals must apply through Kenya Power or their respective retailer. Applications are 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 enter into 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 Kenya Power’s network.
The issued license will be valid for five years.
