Kenya backdates solar export charges by 14
Kenya's energy regulator has made new rules on unauthorized solar exports and net-metering credits legally retroactive to July 2025, without public
Kenya's Energy and Petroleum Regulatory Authority (EPRA) has formally introduced charges for unauthorized solar power exports and confirmed net-metering credit rates. The regulator's statement 2026, takes retroactive legal effect from July 1, 2025. No public explanation has been given for this 14-month backdating.
New rules on unauthorized exports
The amendment creates a formal definition for "dumping." This refers to the unauthorized injection of electricity from a customer's own generation system into the Kenya Power and Lighting Company (KPLC) grid. It applies when there is no company approval or a valid net-metering agreement. Energy dumped into the grid will be billed at the standard base tariff. EPRA or KPLC may take further action if the practice damages equipment.
EPRA has not yet issued any enforcement notices or retroactive billing advisories under this new definition. Industry groups like the Kenya Renewable Energy Association have not made public statements on the change.
Net-metering credit formalized
The notice also codifies the credit rate for electricity exported to the grid under a net-metering agreement. Customers will receive a bill credit worth 50% of their exported electricity. This credit is applied before pass-through costs, taxes, and levies are calculated on the total energy supplied by KPLC.
This 50% rate is not new. It originates from Kenya's Energy (Net-Metering) Regulations of 2024, which took effect in July of that year. The recent statement simply formalizes this existing rate within the official tariff schedule.
Net metering remains capped at 1 MW of installed capacity per customer. It is also constrained by each customer's maximum recorded electricity demand over the previous 12 months. Commercial and industrial customers wanting to self-consume solar power above that 1 MW threshold must pursue separate embedded-generation or open-access arrangements.
Formal approval for net metering requires bidirectional metering and an installation done by an EPRA-licensed contractor. Some industry observers say not all earlier installations meet these conditions, though no public estimates exist.
Other tariff changes confirmed
The regulatory notice also confirmed several other charges and tariffs. It set new rates for electric vehicle charging and listed pass-through costs that affect all customers, including those with solar.
| Tariff/Charge | Rate (KES per unit) | Notes |
|---|---|---|
| E-mobility (standard hours) | 16 | Removes prior 15,000 kWh monthly cap |
| E-mobility (off-peak) | 8 | Removes prior 15,000 kWh monthly cap |
| Fuel Energy Cost Charge | 3.00 | September pass-through charge |
| Foreign Exchange Adjustment | 1.1443 | September pass-through charge |
| Water Resource Management Levy | (included) | Part of total KES 4.16 pass-through addition |
These three pass-through charges add KES 4.16 per unit to electricity bills. All are calculated before any net-metering credits are applied. This magnifies their impact on customers who use net metering.
The changes come as KPLC reported its financial results. For the fiscal year ended June 2026, revenue was KES 238.24 billion ($1.8 billion), an 8.6% increase. Profit rose 2.1% to KES 24.99 billion. Company management has previously cited the tariff structure as limiting revenue growth despite higher sales, though it has not linked that constraint directly to the net-metering amendment.
The 1 MW ceiling and the broader net-metering framework have been in development for years. EPRA first floated a draft version of the rules in 2022, capping eligible systems at the same 1 MW threshold. The goal was roughly 100 MW of initial distributed solar deployment. The recent changes formalize enforcement mechanisms for a policy Kenya has been building toward for four years.
