Interconnection Standards for Small Generators

Program Overview

Field Details
Implementing Sector Federal
Category Regulatory Policy
State Federal
Incentive Type Interconnection
Eligible Renewable/Other Technologies Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Combined Heat & Power, Landfill Gas, Tidal, Wave, Ocean Thermal, Wind (Small), Hydroelectric (Small), Anaerobic Digestion, Other Distributed Generation Technologies, Microturbines
Applicable Sectors Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Tribal Government, Agricultural, Institutional
Applicable Utilities FERC standards generally apply to all transmission-level interconnection; state standards generally apply to distribution-level interconnection
System Capacity Limit 20 MW
Standard Agreement Yes
Insurance Requirements "Additional liability insurance" required only "if necessary as a function of owning and operating a generating facility"
External Disconnect Switch Not addressed
Net Metering Required No

Summary

In July 2016, FERC (Federal Energy Regulatory Commission) issued Order 828, which updated the Small Generation Interconnection Agreement (SGIA). This order mandates that new small generators with a capacity under 20 MW must maintain operation during abnormal frequency and voltage events, rather than disconnecting.

Background

FERC established new interconnection standards for distributed energy resources of up to 20 megawatts (MW) in capacity with Orders 792 and 792-A in November 2013 and September 2014, respectively. These orders revised the standards initially set by FERC in May 2005 through Order 2006. FERC’s standards predominantly apply to facilities under its jurisdiction, usually those interconnecting at the transmission level. Since state-based distribution grids are typically not part of interstate commerce, FERC’s standards do not generally apply to distribution-level interconnections, which are regulated by state public utilities commissions. Nevertheless, FERC’s standards often guide state-level standards.

Small Generator Interconnection Procedures and Agreement (SGIP & SGIA)

FERC’s standards encompass the Small Generator Interconnection Procedures (SGIP) and the Small Generator Interconnection Agreement (SGIA). The SGIP outlines the technical steps that small generators and utilities must follow to connect the generator to the utility’s grid. The SGIA is a contractual framework for the interconnection, detailing the financial responsibilities for any necessary utility system upgrades.

SGIP/SGIA Interconnection Review Processes

These standards include three levels of interconnection review:

  1. The “10-kilowatt (kW) Inverter Process”;
  2. The “Fast Track Process”;
  3. The default “Study Process,” applicable to other systems.

The tables below detail the “breakpoints” or specific system sizes where different processes apply, comparing these thresholds across the two FERC orders.

Standard of Review Previous Rule
(FERC Order 2006)		 New Rule
(FERC Order 792)
10 kW Inverter Process Up to 10 kW Up to 10 kW
Fast-Track Process 10 kW through 2,000 kW (2 MW) Voltage-Differentiated
(See Table Below)
Study Process 2 MW through 20 MW through 20 MW
≥ 30 kV and ≤ 69 kV 2 MW 4 MW

The able below is a detailed breakdown of the voltage-differentiated breakpoints for the newly-adopted “fast track” process newly adopted in Order 792.

Applicable Delivery System Voltage Levels for Fast Track Process (FERC Order 792) Applicable System Size (Regardless of Location) Applicable System Size (Location-Specific*)
< 5 kilovolt (kV) 500 kW 500 kW
≥ 5 kV and < 15 kV 2 MW 3 MW
≥ 15 kV and < 30 kV 3 MW 4 MW
≥ 30 kV and ≤ 69 kV 4 MW 5 MW

The Federal Energy Regulatory Commission (FERC) standards incorporate technical screenings for each level of interconnection. Notably, these standards do not mandate the inclusion of an external disconnect switch for systems. Both utilities and customers are required to adhere to specified timelines and there are set guidelines for interconnection and study fees. Customers are obliged to secure liability insurance adequate to cover all reasonably foreseeable direct liabilities, taking into account the size and type of the generating equipment, the interconnection itself, and the characteristics of the system being interconnected. Additional liability insurance is required only if it is necessary due to the ownership and operation of the generating facility.

Additional Updates in Order 792 & 792-A (2013 & 2014)

The new rules introduce several provisions to enhance the efficiency of small generator interconnection. These include:

  1. The option for developers/customers to request a pre-application report to identify potential interconnection issues, which must be issued within 20 days;
  2. Modifications to the Fast Track process ensuring a prompt initial decision (within 5 days), a limited waiting period for a “supplemental study” (maximum of 30 days) if the initial decision is negative, and a swift post-“supplemental study” decision (within 10 days);
  3. The establishment of three new standard technical screens for the “supplemental study”; and
  4. The eligibility of energy storage systems for interconnection under the SGIP process, assuming it is applicable.

For comprehensive details on every change made to the SGIP/SGIA by Orders 792 & 792-A, FERC’s SGIP/SGIA website offers red-lined versions of each document.

In July 2016, with Order 828, FERC updated the SGIA to require new small generators under 20 MW to maintain operation during abnormal frequency and voltage events, similar to larger generating facilities. This “ride through” requirement means these small generators must remain connected and synchronized with the transmission system during disturbances within specified frequency and voltage conditions.

  • Under FERC Order 792, larger systems can be connected under the Fast Track process if located on a “mainline” and within 2.5 electrical circuit miles (CM) of a substation. FERC defines “mainline” as a circuit’s three-phase backbone, typically comprising specific wire sizes. Additionally, the new rule mandates utilities to include the distance to the nearest substation in the pre-application report provided to developers of interconnecting systems.

Authorities

Field Details
Name FERC Order No. 2006
Date Enacted 5/12/2005
Field Details
Name FERC Order No. 2006-A
Date Enacted 11/22/2005
Field Details
Name FERC Order No. 2006-B
Date Enacted 7/20/2006
Name: FERC Order 792
Name: FERC Order 792-A

Contact

Public Information – FERC
Organization:
Federal Energy Regulatory Commission
Address:
888 First Street, NE
Washington, DC 20426