A controversial bill that would change Kentucky's incentive structure for rooftop solar panels is on its way to the state Senate after narrowly passing in the House of Representatives on March 14.
Lawmakers voted 49-45 in favor of an amended version of House Bill 227, which will let the state Public Service Commission determine the appropriate compensation rate for energy sent onto the grid by customers with rooftop solar panels, state Rep. Jim Gooch told fellow lawmakers. The bill would also let regulators adjust electricity bills for net-metered customers to ensure they pay their fair share to maintain the grid, he said.
The bill also includes a number of provisions to address concerns of the solar industry. It would maintain utilities' obligation to buy excess energy from private solar generators and let current net metering customers keep their existing rates for 25 years. Also grandfathered are property transfers, allowing those that buy or inherit property to take advantage of current net metering rates.
The bill would take effect in 2019, not July 15, 2018, as originally written.
Solar advocates have viewed the bill with concern that it will harm the small but growing industry. Utilities Kentucky Power Co., Kentucky Utilities Co. and Louisville Gas and Electric Co. have argued that current net metering policy benefits those who can afford solar panels at the expense of everyone else. Some legislators, such as state Rep. Brian Linder, a member of the Natural Resources and Energy Committee, said the status quo essentially transfers money from lower- and middle-class residents to wealthy people. Others argue that the number of private rooftop solar customers in Kentucky is too small to cause a problem.
State Rep. McKenzie Cantrell, also a member of the committee, objected to the way in which the bill made its way to the House floor for a vote. She said the process was "detrimental to the public participating," especially given that the last committee vote on the bill came with little notice and was not televised.
In its initial form, the law would have cut credits to customers that own solar panels or other renewable energy resources for the extra electricity made by those systems. After lawmakers proposed more than two dozen amendments to the bill, it was sent back to committee for resolution.
The committee met March 13 to approve the new version of the bill, sending it to a House vote.
