Net Metering
Net metering allows Kansas customers of Evergy and Liberty Utilities to generate their own electricity through a renewable energy source such as solar panels or a wind turbine, and sell the extra electricity they generate back to their utility.
Background
The State of Kansas adopted the Net Metering and Easy Connection Act in May 2009 (see K.S.A. 66-1263 through 66-1271). The Act, amended in 2014, established net metering for customers of the state's investor-owned utilities (IOUs). Under Kansas' net metering policy, small-scale generators receive credit for the electricity they generate. The Act was further amended in 2024 when the Kansas Legislature passed HB 2527 which added and amended definitions, expanded the threshold capacity for IOUs to operate interconnection agreements, and made changes to permissible export generating capacities as well as the methodology for monthly billing calculations.
In July 2010, the Kansas Corporation Commission adopted rules (K.A.R. 82-17-1 through 82-17-5) to implement the statute's net-metering standards. These rules include additional protection for the utility in the event of disruptive problems to the utility's system caused by a net-metered facility.
Eligibility
The state’s two IOUs—Evergy and Empire District—are required to offer net metering and to provide eligible customers who are in good standing with the IOU, on a first-come, first-served basis until the rated generating capacity of all net-metered systems equals 2% of the utilities peak demand in the prior year, until July 1, 2025, at which time it will increase by 1% each July until 2027 when it reaches 5% of the utility’s historic highest annual peak since 2014.
Electric cooperatives and municipal electric providers are not mandated to offer net metering by statute, but many have elected under their boards and membership to enact some form of net metering. Cooperative or municipal utility customers will need to contact their local electric cooperative or municipal electric provider to find out if they offer net metering.
Costs and Benefits
Customers are responsible for the costs of installing and maintaining their generation system, such as solar panels. This may result in significant upfront investments and/or monthly payments for leased or financed systems. However, a properly installed system should allow customer generators to substantially reduce their monthly electric bill. Both of those factors will vary on a case-by-case basis.
The IOUs are required to provide participating customer generators with a bi-directional meter at no additional cost to the customer.
Appropriate Sizing
State law requires that customer-generators shall appropriately size their generation export capacity to their expected load. Statute outlines export limits for customers based on when customers began operating a renewable energy resource under an interconnection agreement. Residential customers who began operating a resource prior to July 1, 2014, are limited to 25 kilowatts and larger commercial or governmental customers are limited to 200 kilowatts. The export capacity for net metering for customers who began operating on or after July 1, 2024, was increased in 2024 up to 150 kilowatts based a formula for appropriate sizing based on historic energy consumption that is outlined in K.S.A. 66-1267. The generation capacity for customers who participate in net metering on or after January 1, 2026 is limited to 50 percent of export capacity. For more details about system sizing and export limitations, click here.
Net Excess Generation
Billing and credits for net excess generation also varies slightly based on when customers began operating a renewable energy resource under an interconnect agreement. For more details about how customers are credited, see click here.
Utility Reporting
By March 1 of each year, utilities are required to submit an annual report that includes the following information about the net-metered facilities in their service territories: type of generation resources, zip code, first year of interconnection, any excess kilowatt-hours that expired at the end of the previous year, generator size, and number/type of meters.
K.S.A. 66-1271 provides that each kilowatt of nameplate capacity of all net metered facilities shall count toward the affected utility's compliance with Kansas's Renewable Energy Standard (K.S.A. 66-1256, 66-1257, and 66-1259). Renewable energy credits (from energy produced by a net metered facility, for example) that a utility allocates toward its attainment of Kansas’s renewable energy standard cannot be sold or used for any other purpose.
More Details
More details about utility compliance can be found in these KCC dockets:
- 12-WSEE-699-CPL (Evergy Kansas Central – formerly known as Westar)
- 12-KCPE-665-CPL (Evergy Kansas Metro – formerly known as Kansas City Power & Light)
- 12-EPDE-689-CPL (Liberty Utilities - Empire District)
See utility websites for additional information about net metering policies and interconnection guidelines:
- Evergy - Net Metering Information
- Liberty Utilities – Empire District – Solar for Home and Business
- Liberty Utilities – Empire District - Net Metering Rider