Net Metering Kenya: 9 Essential Rules for Solar Owners and Businesses

Updated 7 November 2026

Net metering Kenya rules let a home or business that generates its own renewable electricity, usually from rooftop solar, send surplus power into the Kenya Power grid and use the credit later. The scheme runs under the Energy (Net-Metering) Regulations, 2024, Legal Notice 104 of 2024, which commenced on 18 July 2024. The key commercial detail most installers skip: every unit you export earns a credit worth only 50% of a unit, so net metering rewards using your solar on site far more than exporting it.

Checked on 7 November 2026 against the Energy (Net-Metering) Regulations, 2024 published by EPRA and the Kenya Law copy of Legal Notice 104. Fees and deposits are set by the licensee with EPRA approval, so confirm the current amounts with Kenya Power before you budget.

1. Who qualifies for net metering in Kenya

Regulation 5 says the rules apply to renewable energy technologies with an installed capacity of less than 1 MW. The regulations define a consumer as a customer supplied by a licensee who generates electricity on their own side of the meter for self-consumption and net metering using a renewable source. In practice that means solar PV for most applicants, although wind and small hydro also count as renewable energy under the Energy Act.

Licensees, which in most of Kenya means Kenya Power as the distribution and retail supply licensee, must offer net metering on a first come, first served and non-discriminatory basis. Customers who already had a renewable system running before July 2024 can also apply, provided they meet the new requirements.

2. Capacity caps for homes and businesses

Regulation 6 sets the size limits:

Where a business has several meters at one facility, the maximum demand is the sum of all of them, still within the 1 MW ceiling. Nationally, total net-metering capacity is capped at 100 MW for the first five years, and each licensee may set local limits based on its network studies. Those limits must be submitted to EPRA and published on the licensee’s website, so a large factory application can be refused on grid capacity grounds even if it is under 1 MW.

3. The 50% export credit and how billing works

This is the clause that decides your return. Regulation 10 says you receive a credit for each unit exported in a billing period, and that the credit is fifty percent of the exported unit. Billing is monthly at the normal retail tariff approved by EPRA. Kenya Power credits your exported kWh and charges you for the net energy supplied.

A simple illustration using round numbers: if your system exports 200 kWh in a month and you import 500 kWh at night, your credit is worth 100 kWh, so you pay for 400 kWh rather than 300 kWh. If credits ever exceed what you import, the surplus carries forward to the next month, but any unused credits are forfeited at the end of the licensee’s financial year. There is no cash payment for surplus power, and the rules state you are not compensated for capacity, reactive power, voltage or frequency support, or for deemed generation while the grid is down. Utilities may also not estimate the bills of net-metered customers.

4. How to apply for net metering, step by step

1. Apply to the licensee using Form 001 in the First Schedule. It asks for your KRA PIN, electricity account number, customer category, plot number and system details.
2. Attach a feasibility study prepared by a registered and licensed engineer if the system is larger than 10 kW. The Second Schedule sets what the report must contain.
3. Wait for a decision. The licensee considers the study and power-flow studies for the area and must give a decision within 60 days, with reasons if it rejects you.
4. Sign the agreement and pay. If approved, you sign the net metering system agreement in the Third Schedule and pay a non-refundable deposit and fees approved by EPRA.
5. Install and commission within six months. If the meter is not installed and commissioned in that time, the application is deemed withdrawn.
6. File the agreement with EPRA within 30 days of signing. The agreement runs for a renewable five-year term.

5. Meter and installation rules

Installation, interconnection and maintenance must be done by a person authorised by EPRA, to the Kenya Electricity Distribution Grid Code and relevant Kenya Standards. Net meters must be smart, bi-directional, able to record peak supply in different periods and support time-of-use metering. You must give Kenya Power 14 days’ written notice so it can witness testing and commissioning.

To protect line workers, the system needs a clearly labelled, lockable manual disconnect switch that the licensee can reach, unless the inverter shuts down automatically on loss of grid power, carries a manufacturer warranty to do so and was installed and tested by an authorised person. Any later change to the system or connection point needs the licensee’s approval first.

6. Who pays for what

The consumer bears the cost of the meter and the interconnection to the network, on top of the solar system itself. The deposit and application fees must be approved by EPRA before a licensee can charge them, so a quote that bundles unexplained “Kenya Power fees” deserves a written breakdown. Businesses planning a system should also check whether a green or asset finance loan is cheaper than paying cash, and compare installers on warranties and EPRA licensing rather than price alone.

7. Disconnection and penalties

Kenya Power may disconnect a system whose output breaches the grid code after at least 24 hours’ notice with reasons, and without notice if supply would endanger safety or the network. Connecting a net metering system without an agreement, breaking its conditions or altering the system without approval is an offence under regulation 14, carrying the fine in section 221 of the Energy Act. Disputes go first to EPRA, then to the Energy and Petroleum Tribunal.

8. Carbon credits and moving house

Regulation 12 vests any carbon credits from a net-metered system in the consumer unless another law says otherwise, which matters for larger commercial systems that may join a credit programme. If you terminate the agreement you forfeit remaining credits, although credits can pass to a new owner or occupier who takes over the agreement for the rest of its five-year term.

9. Is net metering worth it for you?

Because exports earn half credit and credits expire yearly, the best case is a system sized to cover daytime use, with only modest surplus going to the grid. Offices, shops, schools and factories that use most power in daylight benefit most. Homes that use power mainly in the evening will export more and gain less, and some may get better value from a battery. Ask any installer to model your own 12 months of bills, show expected self-consumption versus export, and price the meter, interconnection and Kenya Power fees separately.

Frequently asked questions

Does Kenya Power pay cash for excess solar power?

No. Under the 2024 regulations exported units earn bill credits worth 50% of each unit, carried forward monthly and forfeited at the end of the licensee’s financial year.

What is the largest system a home can net meter?

4 kW on single-phase supply and 10 kW on three-phase supply.

Do I need an engineer’s report?

Yes, if the proposed system is larger than 10 kW, a feasibility study by a registered, licensed engineer must accompany the application.

How long does approval take?

The licensee must decide within 60 days of the application, and you then have six months to install and commission the meter.