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Net Metering and InterconnectionInterconnection of a PV system with the electric grid allows for net metering opportunities. Many of the discussions about interconnection have come about by way of net metering laws. While many of the policy debates have suggested that interconnection issues are a subset of the net metering debate, in fact, net metering is just one of many interconnection issues.
Net MeteringNet metering allows a PV system to send excess electricity back through the electric meter to the utility. In effect, the meter actually runs backwards. Through net metering, excess electricity is "sold back" to the utility. Residents may benefit from the sale and direct delivery of their PV generation right in their own neighborhoods. New York State income tax credits are also available as an additional incentive. An approved, utility-grade inverter converts the direct current (dc) power from the PV modules into alternating current (ac) power that exactly matches the voltage and frequency of the electricity flowing in the utility line; the system must also meet the utility's safety and power-quality requirements. In the event of a power outage, safety switches in the inverter automatically disconnect the PV system from the line. This safety disconnect protects utility repair personnel from being shocked by electricity flowing from the PV array into what they would expect to be a "dead" utility line. At the end of the month, if the customer has generated more electricity than that used, the utility credits the net kilowatt-hours produced at the wholesale power rate. But if the customer uses more electricity than the PV system generates, the customer pays the difference. The billing period for net metering may be either monthly or annually. At times when the PV system's electric generation exceeds the residence's requirement, the surplus electricity will be credited against the next bill. Over an annual period, if the customer-generator's credits exceed its usage, the utility pays for the accumulated credit. Customers in New York may generate up to 10kW of photovoltaic capacity, making this initiative an important part of the State's renewable resources and distributed generation efforts. To connect your PV system to the electric utility system or grid, you must sign an interconnection agreement with your utility company. The interconnection agreement sets the terms and conditions under which a PV system can be safely connected to the utility grid and outlines metering arrangements (net metering) for your PV system. Contact an eligible installer to learn more about PV systems, applications, costs, and anticipated benefits from a system. Additionally, the Clean Power Estimator developed by Clean Power Research, is an economic evaluation tool that provides an estimate of benefits and costs associated with a PV system incorporating the financial incentives currently being offered through the New York Energy $mart SM PV Incentive Program. InterconnectionInterconnection refers to the technical, contractual, and rates and metering issues that must be settled between the system owner and the utility and local permitting authorities before the system is connected to the grid. In most cases, distributed generation (such as photovoltaics) is installed, owned, and operated by a non-utility entity, be it a homeowner, manufacturing facility owner, or a DG equipment vendor. One of the most important interconnection issues is in the area of standardized agreement forms for customers interconnecting their PV systems. Complicated standard agreements can pose an obstacle to interconnection. Because of the proliferation of states that have interconnection rules in place, visit the Interstate Renewable Energy Council (IREC) model interconnection and net metering agreement. |
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