How to Connect to an Electricity Grid

You can generate wind or photovoltaic electricity and connect to your local power grid at a profit.

Alternative energy is projected to become a major industry in an era of concern about global warming and other environmental challenges. Many Americans now use photovoltaic or wind technology to generate electricity in their homes or places of business. Photovoltaic technology converts sunlight to electricity. Wind turbines convert wind to power. Although it's not required that you connect to your local electricity grid to generate some of your own power, grid connection offers a federally mandated opportunity to save -- or make -- money, while making a positive contribution to the environment.

Instructions

1. Identify the equipment you'll need. In addition to your home or office electricity generation system, whether photovoltaic or wind technology, you will need to purchase equipment that is called a "balance of system" array. That's because you must demonstrate that you have the capability to safely generate electricity. Depending on how much electricity you intend to generate, required equipment can become expensive. Typical requirements, based on the specifications of your local power company, are power-conditioning equipment, safety equipment, and meters and instrumentation.

2. Contact your local power provider to determine its specific requirements for connection to the grid. Do not purchase any equipment until you are certain you understand your utility's requirements. Although regulations and restrictions vary by power company, most U.S. electric utilities face common issues such as power quality and safety, contracts, liability insurance, and metering and rates.

3. Study and comply with any state or local requirements. Some states and communities have their own codes and regulations that cover the types of electricity-generation systems you can legally install in your home or business. Some regulations cover who is allowed to install your equipment. Making a mistake could be financially costly. In some instances, violations might prevent you from connecting to the grid.

4. Find assistance. Seek out local renewable energy companies or support groups for counsel. Other potential resources include your state's Department of Energy or local government officials responsible for energy policy. Particular issues that might require expert advice are building codes, easements, local covenants and ordinances, and technology-specific requirements regarding permissible equipment or grid-connection techniques or restrictions.

5. Get paid for any electricity you generate. Under the Public Utility Regulatory Policies Act of 1978 (PURPA), your local power company is required to pay you what's called an "avoided rate" for the electricity you generate. That means a rate equal to the utility's cost of producing the power in its own power plants or buying it from another commercial generation facility. The electricity you generate will be credited against your monthly electric bill until you are "into the black." At that point, you will start to receive net monthly payments from your power company. If you want to become a commercial provider, you must become what's known as a "qualifying facility." To do that, most power providers require that you meet the provisions of the national Electric Code (NEC).

References

• U.S. Department of Energy: Connecting Your System to the Electricity Grid
• The Encyclopedia of Earth: Public Utility Regulatory Policies Act of 1978