What Is a Solar Interconnection Agreement?
Your Guide to Interconnection Agreements: Purpose, Requirements & Cost
Before you can install solar panels, you’ll need to prepare and submit a contract called an interconnection agreement. Though it may sound complicated, it doesn’t have to be overwhelming.
1 Source Solar is here to break down exactly what a solar interconnection agreement is and what is included in this contract. We’ll explain the purpose and benefits of having this agreement in place, along with the requirements and costs you need to know about.
The best part is that when you work with us, we’ll take care of this contract for you. We have over a decade of experience preparing solar interconnection agreements for our clients and submitting them to local utility companies, ensuring a seamless process for installation. Continue reading to learn more about what goes into a solar contract.
What Exactly Is an Interconnection Agreement?
An interconnection agreement is a business contract between a solar user and an electric utility company, such as MidAmerican Energy or Alliant Energy in Iowa. The contract covers how your solar panels will exchange energy. It’s a written notice that notifies the utility company about your plans to construct, install, and connect your panels to the local electrical grid.
The utility company must approve the contract before the panels can be connected to the electrical grid. This is because the agreement outlines the steps and requirements to safely connect your solar panels to the electrical grid so they can send power back and forth with optimal efficiency. We take care of filing this agreement and obtaining approval before we install your panels.
What Does a Solar Interconnection Agreement Include?
A solar interconnection agreement includes several sections to ensure a safe and successful connection between your solar panels and the local electrical grid. It includes technical and procedural descriptions of this connection. The following list includes some of the main sections in a contract:
- Technical requirements of the solar panels
- Safety and compliance standards for the panels to protect grid workers by having a disconnecting means for the photovoltaics (PV) near the meter
- Liability that establishes you as the owner and makes you responsible for the maintenance of the solar panels
- Definition of roles and responsibilities in managing the connection, including installation terms, system testing and maintenance requirements, communication protocols, and exporting excess energy back to the grid
The agreement is generally executed through a two-phase process. You must first get approval to install the solar panel system. After installation, the panels must receive a final inspection so they can be granted Permission to Operate (PTO).
How Do I Submit a Solar Interconnection Agreement? Who Handles Submitting This Agreement?
To file a solar interconnection agreement, you must submit a formal request for approval to your utility company. It must include the system size, capacity, equipment details, and proposed interconnection point. The owner of the solar panels is the person responsible for submitting the contract and getting it approved.
At 1 Source Solar, we partner with you to take care of each step of the solar installation process so you don’t have to manage it alone. As a full-service company with over a decade of experience in the solar industry, we know the local costs and permitting requirements to ensure your system is compliant. We work with utility companies in Iowa, Missouri, and surrounding states to get your equipment installed and inspected right the first time. This allows you to receive quicker approval and a faster installation time, saving you money.
Why Is a Solar Interconnection Agreement Needed?
A solar interconnection agreement is essential to keep everyone who manages the solar panels safe. It’s also important to ensure that all equipment is efficient and operational for the local power grid.
This interconnection contract allows your utility company to monitor the amount of power your solar panels generate. It also allows you to maintain full ownership of your panels so you can receive credits for the excess energy they produce. This is what allows you to save money on your electricity bill.
What Happens After the Interconnection Agreement Is Submitted?
Once your solar interconnection agreement is submitted to the local utility company, they will assess the solar array components–including the panels, inverters, and system design–for compliance, stability, and any upgrades that might be needed to support power generation. They will provide estimates of costs for any necessary upgrades.
When you partner with 1 Source Solar, we’ll take care of this entire process for you. We file the required interconnection agreement and work with your utility company to ensure your panels meet the local standards for energy efficiency and safety.
How Much Does a Solar Interconnection Agreement Cost?
The cost to file a solar interconnection agreement varies based on local utilities and the size of your solar panels. The fee covers the administrative costs and system compliance reviews that are necessary for the utility company to process each contract and ensure the safety of your equipment.
There can be extra costs for upgrades that the utility company identifies as necessary for safe, effective power generation. These could include specific panel upgrades or advanced metering equipment to track usage.
Working with an experienced solar contractor ensures you receive accurate estimates early. When you work with 1 Source Solar, we’ll help you select the best equipment for your needs. It is rare that we receive a request for upgrades from the utility company as we identify necessary upgrades before submitting the interconnection agreement. We also provide support for maintenance and a five-year workmanship warranty.
Work With Local Solar Installation Experts on Your Project
If you’re ready to take your home, business, or farm to the next level with energy savings and environmentally sustainable solar panels, we’re here to help. We will perform a no-cost project analysis to help you select the best equipment and design for your needs and budget.
Reach out to the 1 Source Solar team today to begin discussing your goals. From analysis to complete installation and permitting management, we make installing solar panels easy and cost-effective.