advanced search

New Study Evaluates Residential Photovoltaic Metering and Interconnection Issues at Utilities

Apr 1, 2008 12:00 PM

There's no question the solar industry has reached a crossroads — entering the beginning of a potentially phenomenal growth spurt that will continue for decades. As the cost of installing grid-connected photovoltaic systems (PV) for the home continues to drop, electricity prices soar, and environmental concerns come to the forefront, more customers will inevitably be choosing solar energy alternatives in the next 10 years. Some estimates expect that by the year 2015, 100,000 PV systems will be installed annually. If this projection proves even close to true, the Solar Electric Power Association (SEPA), Washington, D.C., maintains that net metering and interconnection practices (hookups) must be streamlined in order to avoid excessive time and monetary costs for customers, contractors, and utilities.

According to Mike Taylor, director of research at SEPA, solar is growing most rapidly in California and New Jersey, followed by other western and northeastern states. “When I tell people that New Jersey is ranked No. 2 in the country for solar, behind California, I get a lot of funny looks,” he says. “What people forget is it's not just about solar resources [sunlight]. It's also about how high electricity prices have gotten and will continue to get. In states like New Jersey, public policies have encouraged solar through incentives and/or requirements on electric utilities to fund solar initiatives.”

In its new study, “Residential Photovoltaic Metering and Interconnection Study: Utility Perspectives and Practices,” SEPA offers insight into how utilities can help simplify the solar experience for all parties in markets that are starting to take off. Based on a national survey of 63 electric utilities, the study (implemented by SEPA in collaboration with the Interstate Renewable Energy Council) takes a look at the industry's current practices related to grid-connected PV installations and offers recommendations for improvement going forward. While PV continues to serve as a cost-effective solution for remote power needs, SEPA reports that the grid-connected PV market has emerged as the dominant U.S. market, representing more than 70% to 80% of total installations in 2006. Most of these installations are distributed applications located on or near buildings and other structures, offsetting onsite energy consumption through net metering. For savvy electrical contractors who have proven experience and expertise in PV installations, this niche offers significant business opportunities.

“Almost 100% of residential photovoltaic systems are on the customer side of the meter, so they are installed by private industry,” says Taylor. “In most cases, the utility really isn't involved in the decision to install the system, nor do they install it themselves. A lot of solar businesses have an electrical contractor on staff or they work with an outside electrical contracting firm. As the industry continues to grow, there's going to be a need for trained and certified electrical contractors who can do this type of work.”

That's not to say there won't be a learning curve. According to Taylor, there are currently only 20 utilities in the country that have more than 100 PV systems in their service territories. With PG&E in California being the exception to the rule (with more than 10,000 hookups every year), many utilities across the country have 0 installations under their belts. “So, if you're one of the first five contractors working with your utility on a PV installation, you're going to have to go through an education process,” he explains. “In the future, when you think about technology, safety, certification, and permitting issues, the same processes are not going to work when you're processing thousands of requests per year compared to a handful today. That's why in the next five to 10 years it will be so important for electrical contractors installing these systems to have everything in line. That way, the utility can go check, check, check, approved.”

Because the industry is still in transition, learning to promote safety and efficiency without increasing costs is more important now than ever, maintains Taylor. Citing California as a prime example, he believes the trend toward green building will continue to boost solar adoption and implementation in other areas of the country. And when that happens, utilities and installing contractors better be ready. “We're starting to see whole subdivisions in California (Photo) that have solar integrated as part of the building,” he says. “You don't have a choice. You buy this $500,000 home, and it just so happens to have solar incorporated. I suspect that kind of model will trickle out of California in the not-so-distant future.”

Want to use this article? Click here for options!

© 2012 Penton Business Media, Inc.

---

Acceptable Use Policy blog comments powered by Disqus

Browse Back Issues Select an Issue EC&M Magazine | April 2012 March 2012 February 2012 January 2012 December 2011 November 2011 October 2011 September 2011 August 2011 July 2011 June 2011 May 2011 April 2011 March 2011 February 2011 January 2011 December 2010 November 2010 October 2010 September 2010 August 2010 July 2010 June 2010 May 2010 April 2010 March 2010 February 2010 January 2010 December 2009 November 2009 October 2009 September 2009 August 2009 July 2009 June 2009 May 2009 April 2009 March 2009 February 2009 January 1, 2009 December 2008 November 2008 October 1, 2008 September 2008 August 2008 July 2008 June 1, 2008 May 2008 April 2008 March 2008 February 2008 January 2008 December 2007 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 October 2006 September 2006 August 2006 July 2006 June 1, 2006 May 1, 2006 April 2006 March 1, 2006 February 2006 January 2006 December 2005 November 2005 October 2005 September 2005 August 2005 July 2005 June 2005 May 2005 April 2005 March 2005 February 2005 January 2005 December 2004 November 2004 October 2004 September 2004 August 2004 July 2004 June 2004 May 2004 April 2004 March 2004 February 1, 2004 January 1, 2004 December 1, 2003 November 1, 2003 October 1, 2003 September 1, 2003 August 1, 2003 July 1, 2003 June 1, 2003 May 1, 2003 April 1, 2003 March 1, 2003 February 1, 2003 January 1, 2003 December 1, 2002 November 1, 2002 October 1, 2002 September 1, 2002 August 1, 2002 July 1, 2002 June 1, 2002 May 1, 2002 April 1, 2002 March 1, 2002 February 1, 2002 January 1, 2002 December 1, 2001 November 1, 2001 October 1, 2001 September 1, 2001 August 1, 2001 July 1, 2001 June 1, 2001 May 1, 2001 April 1, 2001 March 1, 2001 February 1, 2001 February 1, 1995 January 1, 2001 December 1, 2000 November 1, 2000 October 1, 2000 September 1, 2000 August 1, 2000 July 1, 2000 June 1, 2000 May 1, 2000 April 1, 2000 March 1, 2000 February 1, 2000 January 1, 2000 December 1, 1999 November 1, 1999 October 1, 1999 September 1, 1999 August 1, 1999 July 1, 1999 June 1, 1999 May 1, 1999 April 1, 1999 March 1, 1999 February 1, 1999 January 1, 1999 December 1, 1998 November 1, 1998 October 1, 1998 September 1, 1998 August 1, 1998 July 1, 1998 June 1, 1998 May 1, 1998 April 1, 1998 March 1, 1998 February 1, 1998 January 1, 1998 December 1, 1997 November 1, 1997 December 1, 1996 November 1, 1996 October 1, 1996 September 1, 1996 August 1, 1996 July 1, 1996 June 1, 1996 May 1, 1996 April 1, 1996 March 1, 1996 February 1, 1996 January 1, 1996 December 1, 1995 November 30, 1995 November 1, 1995 October 1, 1995 September 1, 1995 August 1, 1995 July 1, 1995 June 1, 1995 May 1, 1995 April 1, 1995 March 1, 1995

browse e-newsletters