Local Energy Rules

States Can Stop Utilities From Strangling Local Solar — Episode 273

Brief

The episode centers on interconnection rules—the “rules of the road” that determine how distributed energy resources (DERs) such as rooftop solar and batteries connect to the distribution grid—and why those rules matter for an affordable clean-energy transition. David Golembeski of the Interstate Renewable Energy Council (IREC) explains that well‑designed timelines, technical screens, costs and reporting are among the most influential factors shaping DER affordability and deployment. John Farrell and Golembeski open with background and a personal anecdote, then move from a 10,000‑foot view into specific gaps IREC documents in its Freeing the Grid report (hosted at freeingthegrid.org). IREC scores states against 56 criteria; Golembeski notes 13 states have no statewide interconnection policy, leaving procedures fragmented and opaque at the utility level.

The conversation traces where states have improved and where big problems persist. Oregon, New Jersey, Maine and Wisconsin each improved letter grades since 2023, while New Mexico remains the lone A state after recent storage‑inclusive updates. Golembeski highlights concrete reforms that matter: updated screening questions to keep projects in fast tracks, explicit treatment of storage (solar+storage and standalone), pre‑application reports and hosting‑capacity maps, and new “cost envelope” rules to prevent catastrophic upgrade true‑up bills (New Jersey: 50% cap; DC: 25% cap). He describes flexible interconnection—static schedule commitments vs. dynamic real‑time curtailment—and points to California and ComEd (Illinois) pilots as early examples. On transparency, both hosts emphasize the accountability gap: many states don’t require utilities to report compliance with review deadlines (for example, a 10‑business‑day initial review), so regulators and the public cannot track performance. The pair close with practical next steps: use IREC’s model interconnection procedures (last updated in 2023, with another update expected), convene regulator‑hosted interconnection workgroups, involve consumer‑advocate offices, and push for statewide adoption of proven policies to align interconnection rules with modern DER technology and equity goals.

Why it matters

David Golembeski (IREC) says interconnection is “fundamental” to distributed energy resources (DERs) and that IREC evaluates state rules against 56 best-practice criteria in its Freeing the Grid report.

Key details

  • 13 U.S. states have no statewide interconnection policy, meaning interconnection procedures are set separately by each utility (David Golembeski).
  • Recent state improvements: Oregon moved D→B; New Jersey moved D→B; Maine moved C→B; Wisconsin moved D→C. No state joined New Mexico as an A since the last report (Golembeski).
  • Cost-envelope (cost-cap) policies adopted to limit surprise upgrade bills: New Jersey set a 50% cap between initial and final distribution-upgrade estimates; Washington, DC set a 25% cap (Golembeski explained examples of utility ‘true-up’ bills rising 300–400%).
  • Data transparency deficit: many states do not require utilities to report compliance with interconnection deadlines (e.g., a typical 10-business-day initial review), making accountability difficult (Golembeski).
  • Flexible interconnection has two forms: static schedule-based (developer submits operating profile) and dynamic (real-time utility communications/curtailment). California and ComEd (Illinois) are experimenting with these approaches (Golembeski).
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