Rules, Regulations and Policies
INTERCONNECTION STANDARDS
Each state regulates the process by which a electricity generator can connect to a distribution grid by establishing interconnection standards. These policies seek to maintain grid stability and safety. However, if not implemented properly, these interconnection policies can pose a significant barrier to the development of customer-sited solar generation.
Customers who seek to generate their own electricity with a PV system and hook up to the grid must first go through a interconnection process. Many customers find the interconnection requirements employed by utilities onerous and complicated. Sometimes the process is so lengthy and expensive that it can discourage development of smaller solar installations.
Interconnection standards govern how customers can connect distributed renewable generation systems to the grid. A majority of states have established special grid interconnection requirements for photovoltaic systems and other renewables that have been approved by state public utility commissions. These include streamlined standards for interconnection of smaller systems. The effect of these standards is to add more certainty and reduce budget contingencies in the interconnection process for system installers and purchasers by defining fees that are allowed, processes that must be used, and timelines that must be followed.
All states should adopt interconnection requirements for radial grid situations that are appropriate to the real risks and hazards such interconnections create and that are simple and inexpensive to comply with. All states are strong encouraged to adopt the interconnection standards that have been vetted nationally through the IEEE 1547 review process. The model interconnection standards developed by Interstate Renewable Energy Council (IREC) provide an easy way for states to implement effective programs for small generators, available for download at http://www.irecusa.org/fileadmin/user_upload/ConnectDocs/IC_Model.pdf[1]
States also should work with their major utilities to (a) develop a simplified online submittal process and set of forms for interconnection and (b) eliminate solar disconnect requirements for most solar installations (residential).
New Jersey is noted as having one of the best interconnection standards for solar generation with the following key elements:
- A streamlined and transparent application process with standardized and simple forms
- Elimination of unnecessary and expensive external disconnect switches without compromising safety
- Adoption of plug and play rules for residential-scale systems and expedited procedures for other systems
- Reasonable fees that are proportional to a project’s size
States should consider emulating
[1] Note on radial versus network grid issues: Interconnection requirements may be different for radial grid situations (where there is a single power feed) and network grid situations (often in highly urbanized areas where there are multiple, redundant feeds). Most state-approved standards focus on the simpler radial grid interconnections.
Thus far, interconnection standards that have been adopted for network grids vary significantly from state to state. Two states that have adopted effective standards allowing for interconnection of large DG systems in networked areas are
The IEEE regulations adopted to date cover interconnection in “radial” grids primarily, and efforts are underway to expand coverage to “network” grids as well.