FERC Proposes Rule to Speed Up Solar Energy Grid Interconnection

Sharryn Dotson, Online Editor, Power Engineering
January 17, 2013 | 16 Comments

The Federal Energy Regulatory Commission (FERC) has proposed changes to a rule that will speed up the process and reduce the costs to interconnect smaller-sized solar power projects to the grid while maintaining system reliability and safety. The changes were necessary, the organization claims, because of market changes that were due to state renewable energy goals and policies.

In 2005, FERC issued Order No. 2006, which established national interconnection procedures for generation projects that are 20 MW or less in size and subject to FERC's wholesale jurisdiction. However, the Solar Energy Industries Association (SEIA) filed an interconnection rulemaking petition with FERC in February 2012, arguing that certain aspects of the order have become barriers to cost-effective and timely interconnections. Its proposal will allow solar projects that met certain technical screens to qualify for a "fast track" interconnection process. As a result, the amount of solar considered under the sped-up process is expected to as much as double.

The FERC's new Notice of Proposed Rulemaking proposes four specific reforms:

Allow interconnection customers to request a pre-application report from transmission providers to help them better evaluate points of interconnection before submitting a final request.
Increase the current 2 MW threshold to 5 MW in order to participate in the Fast Track Process. Eligibility would also be based on individual system and resource characteristics.
Revise customer options meeting and supplemental review for projects that fail the Fast Track screens.
Give interconnection customers an opportunity to provide written comments on the upgrades necessary for the interconnection.

SEIA said the changes are welcome news in the solar power industry. "We applaud FERC for recognizing the challenges facing wholesale distributed generation development, which is one of the fastest-growing segments of the solar energy industry," said Rhone Resch, president and CEO of SEIA. "This important proposed rule has the potential to roughly double the amount of solar generation capacity eligible to be fast-tracked in the U.S."

Resch said he hopes the states will look at the proposal as a prototype for their own interconnection rules.

16 Comments

M. SIMON
January 19, 2013

The FERC needs to outlaw clouds that play havoc with grid solar interconnects. Or mandate storage for solar so it is dispatchable. Outlawing clouds is probably cheaper. Storage is probably more effective. But it does raise costs.

David Bainbridge
January 19, 2013

"Because the wiring was the cause", isn't that the point though? It had nothing to do with the grid-tied equipment. It was faulty installation. You can have houses burn down with shoddy installations of any kind of electrical service.

James Desmond
January 19, 2013

Excellent comments, Richard-viers. I generally favor a free market approach to advancing renewable energy, especially residential solar PV, with an emphasis on demand-side management to foster self-consumption without expensive battery-based storage. See this grid operator's quirky but useful blog on that score: http://photoelectricdreams.blogspot.com/

I was the first grid-tie solar PV customer for my local electric cooperative (EMC) in Central Georgia, and it took a year to get them to interconnect. No nuisance fees, no problems once they rolled with me. My SMA inverters automatically shut me off from the EMC's grid in case of black-outs. Regular homeowner liability policy covers my 10KW array, no surcharge.

Here's my array: https://picasaweb.google.com/115162333107690986192

Lately, however, my EMC's been adding fees and nuisance barriers -- to new solar customers. Its message is clear (it's tied into long-term brown power contracts): "We don't want solar." It's CEO told me: "too variable." It wants a $250 application fee and may force new entrants to pay for "studies." It's interconnection policy is dense and not user-friendly.

I built my array in September, 2010 (before the EMC generated its policy) for $1.40/watt after tax credits. I built in a no-code, no zoning county so I could do it myself with hired labor for the tricky parts. I built it above national code, and can do it again today for $1/watt. The system makes/saves me $1000/year at $.08 reverse-meter rate. Smooth thus far, and $1/watt means 10-11 year payback.

Still, fitting into the grid, plus grid reconfiguration costs, seems like a very complex issue that must be resolved before this can go "mass market" (100 million rooftops). I'm collecting research on it here, and invite any you care to send: JamesChristopherDesmond.com

Richard Viers
January 19, 2013

Yes, all the time. In Mount Holly NC just a couple of years ago A system caused a Fire, the roof burned up on a large commercial building. The resulting surge knocked out transformers. Cost over a million dollars in total damage. Because the wiring was the cause of the fire the contractor was liable good thing he provided an insurance bond.

David Bainbridge
January 18, 2013

Has there been any case of this happening? Has any liability insurance ever been paid out for a grid tied solar installation?

Richard Viers
January 18, 2013

I fully understand your point of contention, but the fact of the matter is that it is not the equipment you are insuring against, it is number one, workmanship, number two, natural disaster or weather, related damage that might cause malfunction in your system, or lack of maintenance. Any type of malfunction that causes your system to damage theirs is liability. You don't have insurance just to protect them, it protects you also.

David Bainbridge
January 18, 2013

The problem with the liability insurance is that as long as you are using grid-tie approved equipment I don't see why it is necessary. None of that equipment would ever have been approved if there was any change of it failing to cut the power when the grid is down. The manufacturer would be at fault, not the homeowner. My local co-op allows diesel generators to be remotely triggered on to feed back into the grid without special liability insurance, but for solar power they do.

Richard Viers
January 18, 2013

National Net Metering rule would be great, if the utilities all charged exactly the same amount for energy no matter what time of day or where they are located. Supply and demand regulates energy prices more than most other factors. Remember some years ago when the group that was pillaging the energy consumers in California for billions by creating artificial black outs. They drove energy prices up and capitalized on the consumer demand. That is why California ended up with the tiered rate structuring they have now. You rent energy, it travels in circuits around and around, but it never gets used up. Natural law of Physics. Energy never dies, it only changes form. You may have to get a big bank account and lobby for the changes you want, just like the utilities. I personally prefer to work on the inside and take advantage of the growing need for energy. Rates will be controlled by demand, regulation has been basically eliminated and if you want to be part of the change, you must change. Add your project to the list of projects awaiting approval and see what happens.
Richard Viers Alternative Energy Products Group

Richard Viers
January 18, 2013

Inter connectivity is a dangerous thing, if you connect to a utility without proper safeguards in place, you can actually cause problems that are far reaching, as well as deadly. Insurance cost for something of this type is really not as much of a deterrent as you might think. The average homeowner has to carry liability insurance in order to protect themselves from law suit. Adding a liability clause for a small interconnection is not going to offset the savings on electricity that badly. If you are planning on a larger project, consider what it might cost you to repair or replace the equipment the utility has installed and maintained for their operations to be provided. If you have a good insurance provider have them give you a quote. Liability for cost of replacement insurance is much cheaper than having all of your assets and finances ruined by one surge that causes damage or death.
Richard Viers Alternative Energy Products Group

David Bainbridge
January 18, 2013

Are utility companies in the US still able to require homeowners to get a "million dollar" insurance policy before connecting to them? Please provide any references if you know the answer one way or the other.

Richard Viers
January 18, 2013

Whatever rule changes the FERC makes still are only rule changes. these rules are regarding access to information prior to the interconnection agreement. In other words, you still have to do your due diligence and you still have to achieve an agreement the the utility to connect to the grid. Having access to the information can only be to your benefit if you follow the procedures that are required to prove ability to complete the projects within the parameters set out by the utilities. There are still permit requirements, product requirements, engineering requirements and on and on. The process is only mitigated by the availability of funds, labor, and knowledge. Most utilities will welcome your interconnection agreement if you have all your ducks in a row, but flat disregard any that are not properly built and submitted.
Richard Viers Alternative Energy Products Group.

Warren McKenna
January 18, 2013

A National FIT would be the way to go. Net-Metering is a failed model that is self limiting because it crosses the retail rate structure and not all structures are created equal. Meter the load and meter the generation and create separate rates as the real world works.

Morrill Beckman
January 18, 2013

More green lights for renewable solar start-ups. Great news!

Jim Stack
January 18, 2013

We need a National Net-Metering rule. All power companies should have to give equal credits for clean renewable solar. It should be paid or credited at the Peak Time Of Day rate. It should also be equal to the higher rates the utilities charge other customers for Renewable power.

What's fair for them should be fair and equal to GRID Ties Solar customers.

ANONYMOUS
January 18, 2013

As of now most major commercial plants are located West of the Rockies in with the 6 hours of sunlight defined by he NREL to become profitable. Each state has reserved the right to connect and pay for solar power; here have both nuke and gas for power and make no to pay for transportation cost for HVDC Solar POWER from the West Coast

William Butler
January 18, 2013

This will help a great many people interested in solar. I hope NC adopts similar rules. It is a big break for the + 2 MW to 5 MW applicants. If the USA is really serious about solar and other renewable energy you will see more of these types of incentives. A regulation that saves a customer time and money is much better than a cash grant.

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Sharryn Dotson

I am the online editor for Power Engineering magazine and a contributing columnist to Renewable Energy World North America magazine. I enjoy learning more about the hot topics in the renewables world, but I love hearing from the readers...