# Net Metering FAQs

## FAQs

### What is Net Metering?

Net Metering allows customers of KCP&L, or another electric distribution company, to generate their own electricity in order to offset their electricity usage. Net Metering can lower a customer’s electric bill by reducing the amount of electricity the customer must buy from KCP&L. Net Metering also allows customers to be compensated for any electricity they generate but do not use.

For Example:

• If a customer takes 1,000 kWh of electricity from KCP&L and generates 600 kWh in one billing cycle, the customer would only pay for the net 400 kWh from KCP&L. Based on an estimated rate of \$0.09 per kWh (actual rate will depend on the appropriate tariff)

•  (1,000) kWh used 600 kWh generated (400) kWh billed at \$.09/kWh = \$36.00 for energy charges

• If a Kansas customer takes 500 kWh of electricity from KCP&L and generates 600 kWh in one billing cycle, KCP&L would apply the excess 100 kWh generated to a subsequent billing period. If unused, the excess kWh credited to the customer’s account would expire at the end of the calendar year.

•  (500) kWh used 600 kWh generated 100 Excess kWh is credited to the next billing period

• If a Missouri customer takes 500 kWh of electricity from KCP&L and generates 600 kWh in one billing cycle, KCP&L would bill the excess kWh at a rate around \$0.01 to \$0.03 per kWh depending on the service territory. This rate represents the utility’s cost of generating power. This rate is lower than the average price you pay for power from KCP&L, because your total price also includes the costs of transmission and distribution systems needed to deliver the power to your home or business.

•  (500) kWh used 600 kWh generated 100 kWh billed at \$0.02/kWh = \$2.00 credit on bill for energy charges
NOTE: Customer charges and possibly other charges per the appropriate tariff will apply.

### How does Net Metering work?

In order to use Net Metering, generating equipment such as solar panels or a wind turbine must be installed. This equipment must be connected to a meter that measures the amount of electricity the customer uses and measures the amount of electricity the customer generates in excess of his or her usage.

### What are the benefits of Net Metering?

First, Net Metering eliminates the need for storage of the unused portion of energy produced because the alternative energy sources are typically intermittent resources. The wind does not always blow and the sun does not always shine. Customers not using the alternative energy at the time it's being generated would require expensive battery systems to store the unused portion. Net Metering improves the pay-back customers will experience by eliminating the need to purchase such storage equipment.

Second, Net Metering is important for the environment. Net Metering provides a simple, inexpensive and easily-administered mechanism for encouraging the use of small-scale renewable generating sources. The more power generated from renewable sources provides local and global benefits to the environment and the economy.

### How is Net Metering different from Parallel Generation?

Parallel Generation places a dollar amount to excess generation based on a wholesale electric rate. For example, as a Parallel Generation customer if you used 1,000 kWh of electricity and generated 500 kWh in one billing cycle, your energy charge might look something like this:

 1,000 kWh billed @ \$.09/kWh: \$90.00 500 kWh credit @ \$.03/kWh: \$15.00 Energy Charge \$75.00

NOTE: Customer charges and possibly other charges per the appropriate tariff will apply.

### What types of generating facilities may I install and net meter?

• In Missouri, residential and commercial customers can connect a renewable generation facility below 100 kW.

• In Kansas, a residential customer can connect a generation facility up to 25 kW and a commercial customer can connect a generation facility up to 200 kW.

### Is there a fee for applying for Net Metering?

• In Missouri, no fee is charged when applying for Net Metering.

• In Kansas, a non-refundable \$100.00 fee is charged at the time of application.

### Do I have to apply for Net Metering before installing a renewable generator?

Yes, prior to interconnection of a generator, a completed application must be sent to KCP&L for pre-approval. The application should include:

2. One-line diagram indicating the location for your equipment and the lockable service disconnect.
3. Specification sheets for both the generator and inverter indicating the safety specifications for the equipment.
4. A solar rebate application (for Missouri solar customers only).

### Will anything about my current service change when converting to Net Metering?

When you send in your application for Net Metering, our field engineering group will inspect your current metering service. It may be possible that your system design will require a change to the metering service as required to meet the safety standards of KCP&L. We will require you to make the necessary improvements prior to approving the final Net Metering installation.

### Will a final field inspection be required before I’m enrolled in Net Metering?

Yes. Once you complete your installation, you must contact KCP&L to schedule a field inspection. Our field engineer will look for compliance to your design application and proper placement, labeling and access to the safety disconnect.

We strongly suggest pre-approval by KCP&L prior to installation to avoid delays and additional expenses as a result of required redesigns.

### Will I receive a different kind of meter?

Yes. Your meter will be exchanged with a single, bi-directional meter that measures the amount of energy you consume and the amount of energy your generator sends back to KCP&L.

### What is Parallel Generation?

Parallel Generation is another form of interconnecting your renewable energy source. It is only available to Kansas customers. For more information refer to the Parallel Generation Tariff.