The report describes the key policies and program strategies that have emerged as effective tools for states to advance wide-spread solar deployment. The report’s recommendations are based on the input and lessons learned of the members of the Clean Energy States Alliance, a coalition of state clean energy funds working together to support renewable energy technologies.

The report recommends that states serious about local market-making focus on the following interventions:

• Provide predictable, long-term financial incentive support for solar projects
• Establish “PV friendly” laws such as expanded net metering, simplified interconnection standards, streamlined local permitting, and renewable portfolio standards with solar targets
• Ensure sensible incentive program design to reduce customer transaction costs
• Stimulate favorable solar financing programs
• Commit to use of solar on public buildings
• Support local work force training and development
• Educate consumers on the merits of solar

The report also provides specific examples of state program features and policies that we believe to represent “best in class” approaches.  It is hoped that states will use the report as a blueprint for actions they can pursue to effectively mainstream solar electricity.

Download the report
File format: PDF
Source: Clean Energy Group  

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 New Jersey in adopting interconnection standards allowing large-scale DG in network grid areas. This will further PV market penetration, as well as help address the need for congestion relief in network grid areas. See http://www.njcleanenergy.com/for more information.