Net Energy Metering Solar PV Interconnection Handbook Effective January 1, 2016
Overview This Handbook illustrates the steps, processes, and requirements to apply for a Solar Photovoltaic (PV) interconnection for qualified Net Energy Metering (NEM) generation. The handbook also provides information as to the options the customer has related to NEM selection and should you system generate more then you consume on an annual basis. Technical requirements for the electrical interconnection can be found in the PV Electric Service Guide Solar Photovoltaic at http://www.mid.org/esg/2015/service_guide_solar_pv_forweb.pdf and in MID Electric Service Rule 21 at http://www.mid.org/tariffs/rules/rule_21.pdf. Consumer Protection As with any large investment, do your homework. Get multiple bids from separate contractors and ask for referals. For additional tips or to review your contractor go to California State Contractors License Board website at http://www.cslb.ca.gov/. Application Requirements To be eligaible for interconnecton a customer must have an active electric account in their name and be in good finaincial standing with MID. Applicants must also comply with all MID Electric Service Rates and Rules. MID Solar PV interconnection applications can be found on the MID website at www.mid.org/rebate/solar. Solar Rebates Unfortunately MID solar PV rebates are not available in 2016. Federal Tax Benefits The Federal Investment Tax Credit (ITC) is currently 30% and will continue through 2019 at 30%. Check with IRS and your CPA for more information Net Energy Metering (NEM) History Net Energy Metering (NEM) is applicable for qualified renewable generating facilities intended primariry to offset part of all of the customer s own electrical usage limted to 1,000 kilowatts CEC-AC nameplate rating MID NEM Solar PV Interconnection Handbook Page 1 Effective 01/01/2016
Net Energy Metering (NEM) basicly requires the electric utility to act as a storage battery for extra solar generation and allows the customer to net the energy generated against the energy consumed annually. This type of net metering is refered to as transitional net metering intended to aid solar generation to become cost effective generation resource. Net Energy Metering (NEM) Today At present MID offers what is know as a transitional NEM rate option in compliance with state regulatory and utility code requirements. When MID s solar generation reaches 5% of the total electrical load for the system, MID will close the current transitional NEM rate option and instead offer what is known as a sussessor NEM agreement. Customers who qualify for the transistional NEM can stay on this rate 20 years (240 Months). NEM transitional rates are not transferable or assumable. MID projects that it will reach 5% solar generation sometime in 2016. MID will make every effort to inform customers and contractors prior to any change of the present NEM rate option. Installing Solar PV MID will interact with your contractor to get the solar PV system interconnected. In most cases your contractor will handle all the details. Your contractor should be aware of MID application paperwork and technical requirements. Contractors that submit complete information to MID in a timely manner and adhere to MID interconnection requirements will have their systems interconnected in a most timely manner. It is important to note the it takes MID 3 to 4 weeks to process an application assuming there are no deficiencies. Since applications are reviewed and accepted on a first come first served basis, we strongly suggest that your application be submitted as early as possible so you can be interconnected when your PV project is complete. Application Process (3 Steps) Step 1 - Submit MID PV Interconnection Application Package The following items must be included in the NEM Interconnecton Package: Engineering Review/GenMeter Fee Check - $300 fee for PV sytems 1 kw-ac to 99.9 kw-ac or $800 for PV systems 100 kw-ac or greater. NEM Interconnecton Application Select option and sign Single Line Diagram (SLD) a technical drawing provided by the PV contractor detailing the wiring and electrical components of the PV system* MID NEM Solar PV Interconnection Handbook Page 2 Effective 01/01/2016
Site Plan (SP) A detailed drawing depicting the layout and placement of PV panels and inverterters, metering,switches/disconnects, placarding/signage, obstructions, and relative placement to dwelling and any obstructions to access such a gates (locked or unlocked)* California Solar Iniative solar calucator This calculator is used to produce a report to show the expected production of the PV system installed. Current W-9 IRS completed and signedtax Form Net Metering Agreement signed by customer Interconnecton Agreement signed by customer Mail (USPS or Express Mail) or drop off package to MID MID will not accept incomplete interconnection application packages. Packages that are missing information, incomplete, or are inaccurate, will be returned by USPS mail to the contractor. Successful and timely interconnections depend on the Applicaton Package be sure to Double check the Application Package is accuracy and completeness Incomplete or inaccurate application packages will dealy your interconnection. MID will return packages to the contractor for the following issues: Application Not Signed or submitted without electronic signature credentials Site Plan does not call-out gate access locations and include details if they are normally locked or unlocked. Single Line Diagram if electrical configuraton is non-comfroming to MID requirements or items such as panel placarding are not identified in the drawing. PV Review/Interconnection fee check not submitted with package or submitted for incorrect amount. Incomplete or omitted W-9 Form Application does not match California Solar Iniative Calulator report MID NEM Solar PV Interconnection Handbook Page 3 Effective 01/01/2016
Contractor PV Application Check List for typical non-commercial interconnections Will Help Insure Complete Packages Application Package Requirements Check List Documentation Description Solar PV Application (current version required see MID website) Details for Multiple Arrays Form (required if more than one array in system) Copy of contract with vendor/contractor Single Line Electrical Diagram Site Plans CSI Evaluation (www.csi-epbb.com) Completed MID Interconnection Agreement Completed MID Net Metering Agreement (See MID website) IRS Form W-9 (all non-residential systems; customers who select Net Metering Option 1) $300 Check for Engineering/Interconnection Review (<100KW) Required for Interconnection Copy of City / County Permit Where to Send Application Package To submit application package, please send to the following: Modesto Irrigation District Attn: Solar PV Program 1231 11 th St P.O. Box 4060 Modesto, CA 95352-4060 MID NEM Solar PV Interconnection Handbook Page 4 Effective 01/01/2016
Step 2 - Application Package Received and Accepted by MID Application Acceptance Letter Will be Issued MID will issue an acceptance letter when all required information has been submitted and approved. An Acceptance letter will be sent ot the MID customer of record and the PV contractor listed on the application. Energizing the PV System for Testing Only Once installed and before passing MID inspection the PV system should not be energized on a sustained basis prior to the passing of the Interconnection Inspection. System engergized for testing purposes longer than 24 hours will be subject to tampering fines and could face termination of Interconnection and Net Metering agreements with MID. Step 3 - MID PV Interconnection Inspection After the PV system is installed, typically the solar contractor will submit the appropriate signed-off copy of the City/County final permit to MID. Send a copy of the signed-off final permit to MID.Photovoltaic.Program@mid.org, MID will issue a service order to our meter group who will normally perform the Interconnection Inspection within 12 business days. The permit is required for MID to perform an Interconnection Inspection. The inspection verifies the installation and the correct electrical wiring of required devices (generation/production meter and ac disconnects) as well as installation of MID required signage (placarding). PV System Passes MID Inspection If the PV system passes the inspection, MID will install the generation meter. The installation of the generation meter signifies that your system has been interconnected to MID and your PV system can be energized. MID will not energize customer PV systems. You and your contractor will receive a Permission to Operate (PTO) letter from MID formally informing you that MID has interconnected your system. This typically occurs within 10 days of a successful Interconnection Inspection. Project Fails MID Inspection After the approved city/county inspection notice has been forwarded to MID by the contractor, MID will inspect the site. If the inspection is failed, MID will send an email MID NEM Solar PV Interconnection Handbook Page 5 Effective 01/01/2016
to the contractor stating the reasons for failure The contractor will address the issues and request a reinspection (new city/county permit may be required). Following MID PV interconnection guidelnes closely will help eliminate delays and MID reinspection fees. Some common reasons for MID Inspection Failures are as follows: Locked Gates MID requires that gates be identified on the PV Site Plan as normally locked or unlocked. A normally unlocked gate will allow MID the interconnection equipment and install the generation production meter if all is in order. However, if there is a lock on the gate when MID arrives, and electrical interconnection equipment is located behind the gate, MID will not be able to fully inspect and the customer will be charged a reinpection fee. If the gate is normally locked a dual keyed padlock is required (See Electric Service Guide Photovoltaic for more details) or if the customer plans to install a dual locking hasp it is recommended that an appointment be made with MID to schedule a time that MID can inspect and provide you an MID lock for a dual locking hasp (See Electric Service Guide - Photovoltaic for detials) Most Common Interconnection Problems Incorrect or missing signage/placarding Please see Electric Service Guide Photovoltaic section ****. Damaged Generation/Production meter jaws Special care should be taken with testing a PV system not to damage the meter jaws with wire jumpers. Even the minor spreading of the jaws could fail the inspection. AC Disconnect and Clearences of Electrical Interconnection Equipment MID require two AC disconnects. Please also pay close attention to spacing and clearances of electrical equipment (See Electric Service Guide Photovoltaic) Generation/Production meter socket wired incorrectly - Polarity is often reversed. (See Service Guide Photovoltaic secton**) MID NEM Solar PV Interconnection Handbook Page 6 Effective 01/01/2016
PV System Modification Adding or moditying the number or configuariton of solar panels or the installion of a battery storage system must be disclosed to MID. In some cases a new interconnection application will be required. Not informing MID of PV sytem modificaitons could result in the loss of the NEM 1.0 rate for the entire system or disconnection of your PV sytem. We strongly recommend you contact MID at (209) 526-7339 or email us at MID.Photovoltaic.Program@mid.org, if you any questions on system modification. System Size for NEM NEM system size for qualified renewable generating facilities intended primariry to offset part of all of the customer s own electrical usage limted to 1-1,000 kilowatts CEC-AC Nameplate rating The solar PV system must have a minimum capacity rating of 1 kwac-csi. Maximum system per customer not to exceed 1 MWAC-CSI. Customer is determined by MID Account Number, MID Meter Number and Federal Tax Identification Number(s). MID reserves the right to determine maximum system NEM size. Installation Requirements Premises with multiple electric meters will be limited to one PV system per meter. MID will not increase transformer/service capacity to facilitate PV generation under this program. The solar PV system must be interconnected to the utility distribution grid and generate electricity to offset the end-use consumer s on-site electrical load. The solar PV system must be located on the same premises of the end-use consumer where the consumer s own electrical demand is located. Where multiple PV systems are installed, separate monitoring systems must be maintained for each installation. Eligible PV systems must be permanently mounted and not to a mobile structure. In addition, the building permit for the solar system must be approved by the building code enforcement. Systems must be installed in conformance with the manufacturer s specifications and all applicable electrical and building codes and standards. All systems must be inspected by a certified contractor (written verification required for system approval). MID NEM Solar PV Interconnection Handbook Page 7 Effective 01/01/2016
Systems must be installed by an appropriately licensed contractor, in accordance with rules and regulations adopted by the California Contractors State License Board. MID requires the installation of MID performance (generation) meter measuring the alternating current output of the PV system. Systems must meet MID standards. Please review the MID Electric Service Rules for complete details. MID NEM Solar PV Interconnection Handbook Page 8 Effective 01/01/2016
Grid Interconnection Qualifying PV systems must be grid-connected. This means that the PV system must be electrically connected (on the customer s property) to the MID electric system serving the customer s load. The interconnection of the customer s PV system must comply with all applicable electrical codes, MID interconnection requirements and MID Electric Service Guidelines. Electrical Interconnection and Net Metering Agreements Customers installing a Solar PV system and customers requesting service at an existing service with a Solar PV system are required to submit an Electrical Interconnection Agreement and a Net Metering Agreement. Net metering is designed to off-set the customer s existing load. Oversized systems are not eligible for net metering. Customers modifying an existing Solar PV system and customers moving in to a service with existing PV system are required to submit new Interconnection and Net Metering Agreements for approval prior to interconnection with MID. Electrical Interconnection Agreement The Electrical Interconnection Agreement allows the customer to interconnect their generating system with the MID electric system. MID reserves the right to inspect and verify all interconnected systems at any time. Net Metering Agreement The Net Metering Payment Agreement includes an election for compensation for surplus energy generated. Surplus energy compensation is disbursed on an annual basis. The option cannot be changed more the once in a 12-month period. If an option is not selected, no compensation for net surplus energy will be given. Option 1 Option 2 Option 3 Net Metering Options Receive annual payment in a check mailed to my billing address for net surplus energy (District retains Renewable Energy Credits for the purchased surplus generation). IRS Form W-9 is required. Receive annual bill credits to my electric account as payment for net surplus energy (District retains Renewable Energy Credits for the purchased surplus generation). No compensation for net surplus energy (Customer retains the Renewable Energy Credits). MID NEM Solar PV Interconnection Handbook Page 9 Effective 01/01/2016
End of Document MID NEM Solar PV Interconnection Handbook Page 10 Effective 01/01/2016