Briefing Note 1 Solar Electricity & Solar Water Heating Regulations in Kenya

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1 Briefing Note 1 Solar Electricity & Solar Water Heating Regulations in Kenya Kenya has tremendous potential for solar energy due to its proximity to the Equator. The country receives an estimated 4 to 6 kwh per square meter per day of solar insolation equivalent to about 300 million tonnes of oil equivalent (toe) per day. With increase in energy demand to due economic and population growth, the government has attempted to put in place several policy tools to stimulate the development of the solar sub-sector and other forms of renewable energy to close the demand gap and ultimately enable sustainable economic growth for Kenya. Some of the policies in place to promote this sub-sector include the National Energy Policy, 2004 that is designed to facilitate provision of clean, sustainable, affordable, reliable and secure energy services at least cost while protecting the environment. The Energy Act of 2006 (No. 12 of 2006) articulates on the need for all types of renewable energy resources to be promoted. The Vision 2030 targets solar PV installations of 300MW. The Feed-In-Tarrif (FiT) Policy for power from renewable sources allows independent power producers to contribute to the development of the sector through investments. Solar feed-in-tarrif currently stands at $US per kwh, however, this rate remain relatively low and is yet to attracted utility-scale projects. Besides the FiT, a Net Metering policy was to be introduced by law by Net metering would allow commercial and industrial consumers to install solar systems to reduce their electricity bill, feed-in the surplus to the grid and get credit on their electricity bill for the supplied electricity. A pilot project 60 kilowatt peak solar system has been installed at the SoS Children s home in Mombasa. 1

2 In addition to the above laws, the Energy Regulatory Commission gazetted the Solar Water Heating Regulations (2012) to facilitate uptake of solar water heating. The regulations require for installation of solar water heating systems in all residential and commercial premises. This regulation seeks to ensure that in 5 years from initial enforcement, all premises as described in the regulation will have installed and will be using solar heating systems. Failure to adhere to this regulation is considered an offence and on conviction one is liable to a fine of one million shillings, or to imprisonment for a term of one year or both. This law presents an enabling ecosystem for uptake of solar PV systems. Currently, the residential sector in Kenya uses upto 850 Gigawatt per hour of electricity annually to heat water causing a strain Dayliff solar water heating systems being installed at a city residence Courtesy: Kenya Broadcasting Coorporation on the power infrastructure especially during peak times (morning and evening). It is estimated that households switching to solar can save upto 60% on water bills compared to relying solely on electricity for water heating. The enforcement of this Regulation was published on 28 th January 2014 in one of the local dailies and on the ERC website 1. According to the Public Notice, requirement of the Energy (Solar Water Heating) Regulations 2, 2012 are as follows: i. All premises within the jurisdiction of local authorities with hot water requirements of a capacity exceeding 100 litres per day shall install and use solar heating systems 1 Renewable Energy and Energy Efficiency Regulations (Public Notice), Accessible: 2 The Energy (Solar Water Heating) Regulations, 2012, Accessible - 2

3 ii. All existing premises with hot water requirements of a capacity exceeding 100 litres per day shall install and use solar heating systems within a period of five years from the effective date of 25 th may, 2012 iii. All new premises designs and extensions or alterations to existing premises should incorporate solar water heating; therefore the owner of a premises, architect and an engineer engaged in the design, construction, extension or alteration of premises shall incorporate solar water heating systems therein; iv. An electric power distributor or supplier shall not provide electricity supply to premises where a solar water heating systems has not been installed in accordance with the Regulations; v. The design, installation, repair and maintenance of a Solar Water Heating System shall be in accordance with the Code of Practice Solar Water Heating for Domestic Hot Water; Kenya Standard KS 1860;2008 and the Building Code made under the Local Government Act; vi. The Solar Water Heating Regulations will be implemented in liaison with the local authorities responsible for implementing Section NN31.5 of the Planning and Building Regulations, 2009 vii. A person shall not undertake any solar water heating system installation work unless the person is licensed by the Energy Regulatory Commission as a solar water heating system Technician or Contractor. With a vibrant solar sector in Kenya, the country has seen the entry of a large number of low quality solar products infiltrate into the market. This has greatly undermined consumer confidence in the technology. The Energy (Solar Voltaic Systems) Regulations also gazetted in 2012 aimed at controlling this. The Regulation, also appearing on the Public Notice on 28th January, 2014, outlines the licensing and registration requirements for solar PV system technicians, manufacturers, importer, vendor and contractors. The regulation also outlines the design, installation, repair and maintenance procedures for solar PV systems. 3

4 The requirements of the Energy (Solar Photovoltaic Systems) Regulations, 2012 are as follows: The Energy (Solar Photovoltaic Systems) Regulations, require among other things that:- i. All persons designing and installing solar PV shall be licensed by ERC; ii. All manufacturers, vendors, distributors and contractors of solar PV systems shall be licensed by ERC; iii. A vendor or contractor shall be responsible for the design and specifications of complete solar PV systems, except in situations where customers purchase individual system components from different vendors in which case the customers shall indicate in the signed system design declaration form that they did not require the said design or specifications from the vendor or contractors; iv. All manufacture, sale, installation, use and disposal of solar PV systems and components shall be in accordance with the provisions of the Environmental Management Coordination Act, No 8 of 1999 and the Occupational Safety and Health Act, No 15 of v. The design, installation, repair and maintenance of a solar PV system shall be in accordance with the relevant Kenya Standard. Failure to adhere to these Regulations is considered an offence and on conviction one is liable to excessive penalties including a fine of one million shillings, or to imprisonment for a term of one year, or to both. According to the Public Notice, there is need to always ask for licensing proof issued by ERC before purchasing solar products or enlisting services of any Solar Contractor or Technician. A register of licensed Solar Contractors and 3 The Energy (Solar Photovoltaic systems) Regulations,

5 Technicians is available at the ERC website. Kenya CIC will be providing support for their clients to apply for licencing with ERC. Through its diverse networks, Kenya CIC will also support its clients to secure appropriate technical training for solar PV and comply with the licensing requirements as set out in the Energy (Solar Photo Voltaic Systems), 2012 regulations. 5