The Energy and Petroleum Regulatory Authority (EPRA) has introduced new regulations that could penalize Kenyan households and businesses that generate their own power using solar energy. According to electricity engineer Isaac Ndereva, the rules, which were gazetted on September 18, 2026, create conditions where consumers who generate their own electricity risk being penalized if they are tied to the grid. The regulations, published under Gazette Notice No. 15188, were signed by Acting Director-General Joseph Oketch.
Engineer Isaac Ndereva has raised concerns over the new regulations, warning that they could lead to unexpected charges for households and businesses with grid-connected solar systems. He explained that being tied to the grid means that the primary usage of power comes from solar, and in case of a deficit in usage compared to what is generated, the deficit is supplemented by power from the grid. Ndereva noted that for those who have solar power but are not connected to the grid, there is no risk of penalty because the excess simply goes to waste and is not dumped back into the grid.
The new regulations introduce a 'dumping' charge that applies to solar users who export surplus electricity without formal net metering approval. Ndereva identified the new definition of "dumping" as the most troubling provision in the regulations. Dumping happens when a person who is connected to the grid has installed solar panels that can generate more than they can consume, and the excess ends up going back into the grid. This, according to Kenya Power, can be dangerous, especially during maintenance shutdowns.
Under the new rules, any electricity injected into Kenya Power's network from a consumer's generating system without prior approval or a valid net metering agreement is classified as dumped. Energy categorized as dumped is then billed at the applicable base tariff. Ndereva said that people will be charged at the full base tariff for electricity they are giving away for free. He noted that qualifying for net metering requires bidirectional metering and installation by an EPRA-licensed technician, standards that some earlier solar setups do not meet.
The regulations also stipulate that each unit of electricity exported to the grid earns a credit equivalent to 50% of that unit against energy consumption for consumers who have secured a formal net metering agreement. However, pass-through costs, taxes, and levies are still applied to the total energy supplied before any credit is deducted. Ndereva expressed concern that the regulations carry a retroactive effective date of July 1, 2025, meaning that some solar investments made before the rules were published may already be subject to penalties.
Ndereva advised any consumer with a grid-tied solar system to confirm whether they hold a valid net metering agreement with Kenya Power and, if not, to regularize their status or disconnect from the grid to avoid penalty charges. He emphasized that people need to know the rules before they invest, not after. The engineer also noted that the regulations formalized automatic movement between consumption tiers for domestic and small commercial customers based on a three-month moving average.
The new regulations have categorized domestic consumers into three tiers: DC1 for up to 30 kWh, DC2 for between 30 and 100 kWh, and DC3 for between 100 and 15,000 kWh. For electric mobility users, the tariff sets an energy charge of KSh 16.00 per unit for standard consumption and KSh 8.00 per unit during off-peak hours. The regulations are set to affect households and businesses that have invested in solar energy systems, and Ndereva's concerns highlight the need for awareness and compliance.
Key points
- The new regulations introduce a 'dumping' charge for solar users who export surplus electricity without formal net metering approval.
- The regulations have a retroactive effective date of July 1, 2025, which may subject some solar investments made before the rules were published to penalties.
- Consumers with grid-tied solar systems are advised to confirm their net metering agreements or disconnect from the grid to avoid penalty charges.
