requirements for small grid-connected solar, wind and hydro systems

Small grid-connected solar, wind and hydro projects have some advantages over off-grid systems, namely being cheaper and more flexible. But the connection to the electric grid and the relations with the utility raise some questions about charges, fees and requirements.

Requirements

The requirements for connecting a small power generation system to the electricity grid vary from state to state, but most of them involve 1) regulations regarding safety issues and the quality of the elements of the system, 2) some contracts and also the issue of 3) metering, rates and eventually the payment (by the utility) of excess power generation.

Who to contact?

Below, we give some tips and a general view about the several types of requirements.

For specifics and details, contact your power provider. He should inform you about contractual issues, fees or charges.

If your utility hasn’t a service dealing with grid-connection requests for small renewable systems, look for help from state entities (in USA: the state utilities commission, the state energy office or the state consumer representation office).

Relations with power providers

Not all power providers have the same position or openness regarding small renewable systems. Some have now standard and simplified agreements and requirements, which will make paper work simpler. These utilities have representatives capable of handling grid-connection demands.

But there are other utilities less engaged and interested in renewable systems, which can determine a lot more work or even higher costs for those interested in connecting their systems to the grid.

Contractual Issues for Grid-Connected Systems

Connecting a small renewable power system to the grid demands an agreement between the two parts (you and the utility). Most agreements require an insurance policy with a liability of a least $100,000 – a way to protect the power provider from the event of an accident caused by your system on their structures.

Many homeowners have that liability through the insurance policy of their home, but it may not cover the accidents involving your small power system – something that you should verify.

Many utilities are now simplifying these requirements, but some are still imposing stringent requirements, like compensations for potential damages, losses, or injuries caused by renewable systems.

Costs

The utility's attitude in what regards payment of fees and charges (permitting fees, inspection fees, metering charges or stand-by charges, in this last case to cover the maintenance costs associated to the connections to the grid) may also vary a lot. Some demand much higher charges and fees than others, and you should identify all those costs.

Net metering and excess generating payment

See: Net Metering for Small Renewable Systems

Other requirements

See:
Codes and Legal Requirements for Small Renewable Systems
Hydro Power Systems and Water Rights
Solar Power Systems Requirements
Wind Power Systems Requirements