Eco Solar, a BP Solar distributor, signed an agreement with Luz del Sur, a power distribution company serving customers in southern Lima. The aim of the contract, the first of its type in Latin America, is to develop a photovoltaic (PV) grid-connect system program. The initial objective is to install one hundred of these systems providing as much as 500 kW of power for Luz del Sur customers.Lima, Peru – December 10, 2002 [SolarAccess.com] This program was scheduled to begin on December 1, 2002. Eco Solar developed a pioneer project in Peru and successfully installed a 2.6 kW pilot grid-connect system in a four-story building in the country’s capital, Lima. This system demonstrated how grid connected PV systems work, and it helped to progress the discussion between Eco Solar and the Utility Company. An important element of this project is the application of net metering. When the PV system is generating less power than required by the user, the utility provides the difference, spinning the meter forward. When it generates more power than required, the excess electricity flows into the utility grid, spinning the electric meter backwards and building a credit against the utility bill. This can reduce electricity bill costs by 50 –100 percent, while also contributing to a cleaner environment, said BP solar. A similar photovoltaic grid tie system pilot project is being developed in Brazil, where BP Solar signed a contract with CEPEL – Federal Electric Researches Center – to supply and install a 16 kW grid tie system.