Solar Interconnection Agreement 101

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Solar Interconnection Agreement
Aidan Muir
August 5, 2022

What is a Solar Interconnection Agreement?

A solar interconnection agreement is between solar customers and the utility company. This is an approval process that allows a homeowner to operate a power generation system (solar energy system) in parallel with the utility grid. The utility company will conduct an engineering analysis to see if equipment upgrades are needed to the utility infrastructure. Afterwards, these costs may be given notice to the customer prior to construction and are typically billed to the customer upon approval of the work to be completed.

Who takes care of this process?

A reputable solar contractor such as Sandbox Solar. We will coordinate these agreements between the customer and the utility by providing the necessary information, documentation, and permitted construction. This will ensure your power generation system runs smoothly.

Why do I need a Solar Interconnection Agreement?

The grid company is concerned with the overall safety of its transformers, lineman, and other assets that allow it to operate. Therefore, these agreements ensure that the power generation system is safely connected to the grid. This gives the utility company awareness of the power being generated and that its workers and assets are safe at all times. Meaning, these agreements define liability so that the homeowner maintains ownership of the power generation system. Making the homeowner solely responsible for the operation and maintenance.

Disclosure

This description and explanation are not intended to be a replacement for any other legal documentation or explanation. The purpose of the summary below briefly explains what interconnection agreements are and why utilities require them to be signed. You must read your utility’s specific interconnection agreement in its entirety before signing.

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