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Utility Grid Tie Considerations

  • Safety Certification
  • What is a Grid Tie
  • How a Grid Tie Works
  • New Standards and Compliance
  • What You Should Know about Permits
  • Utility Grid Tie Insurance Requirements
  • Getting a "Utility Interconnection Agreement"
  • Getting a "Net Metering Agreement"
  • Final Inpections by Utility & Local Inspectors
  • Cost vs Quality
  • grid tied solar installations

    Safety Certification

    First off, insure that your battery grid tie is a safe power module. This is crucial, your charger should be certified by an independent testing laboratory such as UL, ETL, CSA, etc., and stamped accordingly. This is your assurance that it be safe, will meet the manufacturer’s specifications, and will be approved in an electrical inspection. There are different design and rating standards for various geographical regions for code compliance. These also vary from one country to another.

    What is a Grid Tie

    Grid Tie are designed to interact with the utility and sell power back to the utility when there is a surplus. Two distinct styles are available:
    1. those that have no battery storage and feed power directly into the grid
    2. those that function like a standard battery based alternative energy system - basically a home size battery backup system - When there is excess power it is sold back to the utility.


    You can truly become your own power company and not only a user of power, but a provider as well. There are multiple layers of bureaucracy that surround this issue, scroll down to get a primer!

    You can purchase a fully certified grid intertie inverter system that is compliant with world wide accepted standards, plug it into your house and become a power provider. This is not Science-Fiction, or a product from Popular Mechanics. These are certified products that are available, off the shelf for people just like you to use!

    How a Grid Tie Works

    A grid tie is simply a DC - AC power inverter that meets the specifications of the electrical grid. Click here for more on DC - AC power inverters

    Grid Tie Inverter Quality - Not Your Daddy's Inverter

    National standards for utility interconnection of PV systems are being adopted by many local utilities. The most important of these standards focuses on inverters. Traditionally, inverters simply converted the DC electricity generated by PV modules to the AC electricity we use in our homes. More recently, inverters have evolved into remarkably sophisticated devices to manage and condition power. Many new inverters contain all the protective relays, disconnects, and other components necessary to meet the most stringent national standards. Two of these standards are particularly relevant:

  • Institute of Electrical and Electronic Engineers, P929:
     Recommended Practice for Utility Interface of Photovoltaic Systems.
    Institute of Electrical and Electronic Engineers, Inc., New York, NY (1998).
  • Underwriters Laboratories, UL Subject 1741:
     Standard for Static Inverters and Charge Controllers
     for Use in Photovoltaic Power Systems (First Edition).
    Underwriters Laboratories, Inc., Northbrook, IL (December 1997).


  • You don’t need to fully understand these standards, but your PV provider and utility should. It is your obligation to make sure that your PV provider uses equipment that complies with the relevant standards, however, so be sure to discuss this issue. ALL BD BATTERIES INVERTERS SOLD ARE COMPLIANT WITH THESE STANDARDS.

    What should you know about permits?

    If you live where a homeowners association must approve a solar electric system, you or your PV provider may need to submit your plans. You’ll need approval before you begin installing your PV system. However, some state laws stipulate that you have the right to install a solar electric system on your home.

    You will probably need to obtain permits from your city or county building department. These include a building permit, an electrical permit, or both. Typically, your PV provider will take care of this, rolling the price of the permits into the overall system price.

    However, in some cases, your PV provider may not know how much time or money will be involved in “pulling” a permit. If so, this task may be priced on a time-and-materials basis, particularly if additional drawings or calculations must be provided to the permitting agency. In any case, make sure the permitting costs and responsibilities are addressed at the start with your PV provider before installation begins.

    Code requirements for PV systems vary somewhat from one jurisdiction to the next, but most are based on the National Electrical Code (NEC). Article 690 in the NEC spells out requirements for designing and installing safe, reliable, code-compliant PV systems. Because most local requirements are based on the NEC, your building inspector is likely to rely on Article 690 for guidance in determining whether your PV system has been properly designed and installed. If you are one of the first people in your community to install a grid-connected PV system, your local building department may not have experience in approving one of these systems. If this is the case, you and your PV provider can speed the process by working closely with building officials to bring them up to speed on the technology.

    Utility Grid Tie Insurance Requirements

    What should you know about insurance?

    For grid-connected PV systems, your electric utility will require that you enter into an interconnection agreement (see also the next section). Usually, these agreements set forth the minimum insurance requirements to keep in force. If you are buying a PV system for your home, your standard homeowner’s insurance policy is usually adequate to meet the utility’s requirements.

    Utility Grid Interconnection Agreements

    How do you get an interconnection agreement?
    Connecting your PV system to the utility grid will require an interconnection agreement and a purchase and sale agreement. Federal law and some state public utility commission regulations require utilities to supply you with an interconnection agreement. Some utilities have developed simplified, standardized interconnection agreements for small-scale PV systems.

    The interconnection agreement specifies the terms and conditions under which your system will be connected to the utility grid. These include your obligation to obtain permits and insurance, maintain the system in good working order, and operate it safely. The purchase and sale agreement specifies the metering arrangements, the payment for any excess generation, and any other related issues.

    The language in these contracts should be simple, straightforward, and easy to understand. If you are unclear about your obligations under these agreements, contact the utility or your electrical service provider for clarification.

    How do you get a netmetering agreement?

    Some utilities offer customers with PV systems the option to net meter the excess power generated by the PV system. As noted, this means that when the PV system generates more power than the household can use, the utility pays the full retail price for this power in an even swap as the electric meter spins backward, and your PV power goes into the grid.

    Net metering allows eligible customers with PV systems to connect to the grid with their existing single meter. Almost all standard utility meters can measure the flow of energy in either direction. The meter spins forward when electricity is flowing from the utility into the building and spins backward when power is flowing from the building to the utility.

    For example, in one utility program, customers are billed monthly for the “net” energy consumed. If the customer’s net consumption is negative in any month (i.e., the PV system produces more energy than the customer uses), the balance is credited to subsequent months. Once a year, on the anniversary of the effective date of the interconnection agreement, the utility pays the customer for any negative balance at its wholesale or “avoided cost” for energy, which may be quite small, perhaps less than 2 cents per kilowatt-hour.

    Net metering allows customers to get more value from the energy they generate. It also simplifies both the metering process (by eliminating the need for a second meter) and the accounting process (by eliminating the need for monthly payments from your utility). Be sure to ask your utility about its policy regarding net metering.

    Under the federal Public Utility Regulatory Policies Act (PURPA), utilities must allow you to interconnect your PV system. They must also buy any excess electricity you generate, beyond what you use in your home or business. If your utility does not offer net metering, it will probably require you to use two meters: one to measure the flow of electricity into the building, the other to measure the flow of electricity out of the building. If net metering is not available, the utility will pay you only a wholesale rate for your excess electricity. This provides a strong incentive to use all the electricity you generate so that it offsets electricity you would otherwise have to purchase at the higher retail rate. This may be a factor in how you optimize the system size, because you may want to limit generating excess electricity. Such a “dual metering” arrangement is the norm for industrial customers who generate their own power.

    Final Inspections and Signatures

    After your new PV system is installed, it must be inspected and “signed off” by the local permitting agency (usually a building or electrical inspector) and most likely by the electric utility with which you entered into an interconnection agreement. Inspectors may require your PV provider to make corrections (which is fairly common in the construction business). A copy of the building permit showing the final inspection sign-off may be required to qualify for a solar rebate program.

    Cost vs Quality

    Is the lowest price the “best deal”? It might not be. You generally get what you pay for, and it's possible that a low price could be a sign of of a poor product. Companies that produce quality products, in order to stay in business must charge enough for their products and a fair profit margin. Therefore, price should not be the only consideration, and quality should probably rank high on the list.
    Battery Systems 101
    Battery Chargers Info
    Battery Inverters Info
    Lags, Sags, Surges Spikes and Transients
    Grid Tie Info
    Custom Uninterruptable Power Supplies Info
    Wire Rules and Info
     

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