Keys Energy Services Solar: Credits, Fees and What You Save

Solar creditAvoided cost for mostOnly the first 75 customers got full retail

Average rate15.1 cents per kWhFederal EIA average for residential customers

A $300 bill needs12 to 15 kWCovers roughly 75 to 95 percent of a year's use

Good to knowLeftovers are paidUnused credits are paid at year end

The short answer

Keys Energy Services (KEYS), the City of Key West's utility, credits the power your system sends to its grid on your monthly bill, and credits accumulate for up to twelve months, with any leftover paid at year end. But only the first 75 residential and small commercial customers got the full retail credit. Everyone after them is credited at KEYS' avoided-cost rate.

At about 15.1 cents per kWh, a $300 monthly bill needs roughly 12 to 15 kW of solar to cover most of your use, and a $400 bill needs roughly 16 to 20 kW. KEYS serves Key West and nearby areas of Monroe County.

How KEYS' solar credit works

Your home uses your panels' output first, and only what flows on to KEYS' grid earns a credit.
Each billing cycle, KEYS credits the excess it received in the previous cycle as a credit on your monthly bill.
Credits larger than your bill accumulate and offset your energy bill for up to twelve months. At the end of each calendar year, KEYS pays you for unused credits, and it pays any you have left if you close your account.
You need an executed Standard Interconnection Agreement and a Tri-Party Net-Metering Power Purchase Agreement among KEYS, the Florida Municipal Power Agency (FMPA) and you.
Systems can be up to 2 MW. The program is open on a first-come basis until connected solar reaches 2.5 percent of KEYS' combined customer peak demand.

These terms are from KEYS' net metering tariff on file with the Florida Public Service Commission, effective October 1, 2016. KEYS has renumbered its tariff sheets since, so confirm current terms with KEYS before you sign.

Who got the full retail credit

For systems of 10 kW or less, the first 75 standard residential and small commercial customers to interconnect before October 1, 2017 earn credit at the full retail rate, which includes the power cost adjustment. That rate ends on January 31, 2037, and it applies at a single premises. Everyone else, and every larger system, is credited at KEYS' avoided-cost rate, as KEYS determines it.

KEYS' solar credit by group

First 75 customers, before Oct 1, 2017Full retail rate plus power cost adjustmentUntil January 31, 2037Then KEYS' avoided-cost rate

Everyone elseKEYS' avoided-cost rate, as determined by KEYS

From February 1, 2037, every net metering customer is credited at KEYS' avoided-cost rate. KEYS does not publish that rate in the tariff, so ask for the current figure.

What KEYS charges

KEYS' residential rate, Schedule R (rate 110), has a monthly customer charge, an energy charge per kWh, a storm surcharge and a power cost adjustment, plus taxes and the gross receipts tax. Its sheets change, so read the current one before you size a system. Our calculator uses KEYS' average residential rate of 15.1 cents per kWh from federal EIA data.

What a monthly KEYS bill needs

Sizes assume about 15.1 cents per kWh and a system built to cover 75 to 95 percent of a year's use. The savings and leftover-bill columns use the PSC's December 2025 bill figures for KEYS, which list $30 a month as its minimum bill or customer charge.

Monthly bill	System size	Savings a year if you use it all at home	Bill left each month
$200 a month	7.8 to 9.9 kW	$1,530 to $1,940	$39 to $72
$300 a month	11.9 to 15.1 kW	$2,430 to $3,080	$44 to $98
$400 a month	16.0 to 20.3 kW	$3,330 to $4,220	$49 to $122
$500 a month	20.1 to 25.5 kW	$4,230 to $5,360	$53 to $147

Planning numbers only, not a quote, before taxes and local fees. Unless you were one of KEYS' first 75 net metering customers, power sent to the grid earns its avoided-cost rate, so treat this as the top end.

How to connect solar to KEYS

Choose a licensed contractor and size the system for your own use, since exports earn the avoided-cost rate.
Ask KEYS for its current net metering application and interconnection forms.
Provide an executed Standard Interconnection Agreement and the Tri-Party Net-Metering Power Purchase Agreement among KEYS, FMPA and you, and show you meet the interconnection standards in the agreement.
Pay any application fee for your size, then wait for KEYS' approval before you operate the system.

Fees by system size

System size	Tier	Application fee in the tariff
10 kW or less	Tier 1	No application fee and no study fee
Over 10 kW to 100 kW	Tier 2	$320, no study fee
Over 100 kW to 2 MW	Tier 3	$470, plus the cost of an interconnection study paid in advance

KEYS says fees may be adjusted annually.

Which utility do I have?

Your bill names your utility. Not every address in the Keys is served by KEYS, and Florida Keys Electric Cooperative serves other parts of the island chain. Compare every utility we cover at solar by utility, or read our KUA guide, since KUA is also a city utility in the Florida Municipal Power Agency.

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Common questions

How much solar do I need with Keys Energy Services?

At about 15.1 cents per kWh, a $300 monthly bill needs roughly 12 to 15 kW of solar and a $400 bill needs roughly 16 to 20 kW. Because most new systems are credited at KEYS' avoided-cost rate, the size that fits is the one that covers your own use.

Is solar worth it with Keys Energy Services?

It depends on how much of your solar power you use at home. Under KEYS' net metering tariff, only the first 75 residential and small commercial customers got the full retail credit. Everyone after them is credited at KEYS' avoided-cost rate, so power you use yourself is worth more than power you export. Compare our estimate, which is a top end at KEYS, with each quote. The federal tax credit ended on December 31, 2025.

How does Keys Energy Services credit solar power sent to the grid?

Each billing cycle, KEYS credits the excess energy your system delivered to its grid in the previous cycle as a credit on your monthly bill. Your panels serve your home first, and only the excess is credited.

Who gets the full retail credit at KEYS?

Under the tariff, the first 75 standard residential and small commercial customers to interconnect a system of 10 kW or less before October 1, 2017 earn the full retail rate, and only at one premises. That slot count has long since been used, so a new customer should expect KEYS' avoided-cost rate.

What happens to KEYS solar credits in 2037?

The full retail rate for the first 75 customers ends on January 31, 2037. From February 1, 2037, the credit for all net metering customers is KEYS' avoided-cost rate.

Do KEYS solar credits expire or get paid out?

Credits larger than your bill accumulate and offset your energy bill for up to twelve months. At the end of each calendar year, KEYS pays you for any unused excess energy credits, and if you close your account it pays what you have not used.

How do I connect solar to Keys Energy Services?

Provide KEYS with an executed Standard Interconnection Agreement and a Tri-Party Net-Metering Power Purchase Agreement among KEYS, the Florida Municipal Power Agency and you. Ask KEYS for its current application and forms.

What does it cost to apply for solar at KEYS?

In the tariff on file with the Public Service Commission, systems of 10 kW or less pay no application or study fee. Systems over 10 kW up to 100 kW pay $320, and systems over 100 kW up to 2 MW pay $470 plus the actual cost of an interconnection study, up to $2,500 in the 2016 tariff. Fees may be adjusted annually.

Is there a limit on how much solar KEYS will connect?

Yes. The tariff is first-come, first-served until total interconnected renewable capacity reaches 2.5 percent of KEYS' aggregate customer peak demand, although KEYS may approve more at its discretion if there is no adverse impact on its system.

Sources: KEYS net metering tariff filed with the PSC (PDF) · KEYS tariff filing, November 2025 (PDF) · Florida PSC comparative rate statistics, December 31, 2025 (PDF) · U.S. EIA Form 861 utility data, 2024 and 2025 early release

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