Generation Partners
What is Green Power Switch® (GPS) Generation Partners?
GPS Generation Partners is a program that provides technical support and incentives for the installation of renewable generation facilities. GPS Generation Partners was started as a pilot in 2003 as a result of requests from end-use customers for “net-metering” standards in the TVA service territory. Net-metering enables customers to use their own generation to offset their consumption over a billing period by allowing their electric meters to turn backwards when they generate electricity in excess of their demand. This offset means that customers receive retail prices for the excess electricity they generate. Because of TVA’s current power contracts with its local power companies, net-metering is not an option in the TVA service territory. TVA created GPS Generation Partners as a “dual-metering” option, an alternative to net-metering. With the GPS Generation Partners program, there are two meters and TVA purchases 100% of the green energy output and then uses solar, wind, low impact hydropower, and biomass as a Green Power Switch resource.
Green Power Switch is an energy option that allows local power companies throughout the Tennessee Valley to provide their customers the choice to buy electricity produced by renewable resources. TVA owned generation in the Green Power Switch Program includes solar, wind, and methane gas from waste water treatment. See www.greenpowerswitch.com for more information on Green Power Switch.
What are the benefits for the participants of GPS Generation Partners?
Program participants support the environment by helping keep the Tennessee Valley clean and green. For example, a 3 kilowatt (kW) system's annual benefits are equal to planting an acre of trees or taking a car off the road for 4 months. In addition, solar systems help improve air quality by reducing emissions of fine particulate matter, nitrogen oxide, and sulfur dioxide. They also benefit by defraying the costs of their renewable system installation and lowering their monthly energy bills through the revenue they receive from the sale of the green power. TVA likes to call GPS Generation Partners a Win-Win-Win for the end-use customer, PES and TVA.
How does the program work?
Below is an overview of how the program works:
• An eligible, renewable generation system is installed by a residential, commercial, or industrial power customer served by PES.
• TVA will purchase 100% of the green energy output at a premium of $0.12 cents per kilowatt-hour (kWh) for solar and $0.03 for all other renewable generation sources above the retail rate plus any fuel cost adjustments. All new participants will qualify for an additional $1000.00 incentive to help offset start-up costs.
• Payment is issued in the form of a credit on the participant’s monthly power bill by PES, who will meter both the power use of the home or business as well as the output of the renewable generation system.
• PES will provide monthly statements showing energy used and any applicable credit due. The power bill will be reconciled monthly with these energy credits. If the system produces more than the home or business consumes then a check will be issued.
• All equipment must be in compliance with environmental regulations and national standards, certified by a licensed electrician, and meet all applicable codes.
• The customer is guaranteed payments for 10 years from the start of the agreement with PES.
What renewable resources and technologies are eligible for the program?
Projects that generate electricity from technologies using any one of the following sources are eligible for the program: solar, wind, low impact hydropower, and biomass.
Biomass includes all solid, liquid, and gaseous forms of the following fuels:
• All woody waste
• All agricultural crops or waste
• All animal or other organic waste
• All energy crops
• Landfill gas and wastewater methane
Go to the Renewable Energy Resources page to learn more about each technology.
What size renewable systems are eligible for the GPS Generation Partners program?
To maintain consistency among TVA offerings and to provide consumers with a standard offer, the minimum size for all eligible generation systems is 500 watts and the maximum size is 999 kilowatts.
How safe are these systems?
All interconnection and safety equipment must be tested by a Nationally Recognized Testing Laboratory for continuous interactive operation with an electric distribution system in compliance with IEEE 1547 (Standard for Interconnecting Distributed Resources with Electric Power Systems), IEEE 1547.1 (Standard Conformance Test Procedures for Equipment Interconnecting Distributed Resources with Electric Power Systems), and UL 1741 (Inverters, Converters, and Controllers for use in Independent Power Systems). In addition, all systems must be manufactured and installed in compliance with the National Electric Code (NEC). Systems must be permitted and certified by a licensed electrician along with passing all applicable code inspections.
Having your system meet these national standards means that your system is very safe. In addition to these national standards, GPS Generation Partners requires an outside lockable disconnect device that provides additional security and peace of mind in the event of a power outage. The lockable disconnect device must be accessible by personnel from PES, who have the ability and authority to lock out the power from the grid via the disconnect device.
How were the premiums of $0.12 for solar and $0.03 for all other renewables determined?
TVA looked at the incentives from several perspectives:
TVA
• Current REC Markets
• Purchasing emission allowances for potential RPS scenarios
• Cost to build and own renewable resources
Customer
• Comparison to current incentives
• Rate of return and payback analysis
Why are there different premiums for the various renewable sources?
Solar systems receive a higher premium than other projects. This recognizes that solar systems cannot be successful under the same premium for other renewable sources. The cost of installing solar energy is generally much more expensive than other renewable technologies. All premiums will be reviewed on an ongoing basis.
How much will the generation system cost?
For an average size solar system, 1.5 kilowatts to 2 kilowatts, a customer can expect to pay on average $8 - $10 per watt for parts and installation. An average size wind turbine system averages $2 to $4 per watt for equipment, plus the cost of installation. There are several factors that must be taken into consideration when pricing either solar or wind systems, such as federal and state tax credits and rebates.
For example, a 2 kW solar photovoltaic (PV) installation averages 200 kWh per month or roughly $44 per month Generation Credit:
200kWh X $0.22/kWh (average retail rate of $0.10 + solar premium $0.12) = $44
In comparison, a 10 kW solar PV installation would average $220 per month Generation Credit.
Are there ways to help pay for installations?
• Federal Tax Credits (subtracted from total tax liability, as opposed to tax deduction)
o Solar – 30% Residential & Commercial tax credit with no cap through 12/31/2016
o Wind – Maximum system size of 100kW. 30% tax credit
• For systems placed in service in 2008, the maximum credit is $500 per half-kilowatt, not to exceed $4,000.
• There is no limit to the amount that can be claimed for systems placed in use after 2008 because the American Recovery and Reinvestment Act of 2009 removed a previous cap.
• State Tax Credits – varies by state
• Property Tax Credits – varies by state
• Additional information regarding federal and state incentives is available at the DSIRE website at www.dsireusa.org.
• $1000 TVA Incentive
• Financing for solar installations may be available.
Are GPS Generation Partners installations certified for Green Power Switch?
Yes. In the previous program, end-use installations were not included in the verification process. For the expanded offering, these installations will be accredited.
What are the specific connection requirements?
Each customer must submit a completed interconnection application to PES. PES will determine whether the project can be fast-tracked or if the project must undergo a feasibility study process to determine the impacts on the distribution system. The interconnection application and other documentation specifying specific connection requirements can be obtained by contacting PES.
In the event of a power outage, will I be able to supply power to my home?
In order to be a participant in GPS Generation Partners, the system must be connected to and generate power to the grid. Each installation must have a grid-tied inverter that synchronizes the power generated with the utility grid, and also prevents electricity or generation from flowing to the grid during an outage. The condition where an inverter continues to electrify the grid during an outage is called islanding. For the safety of line workers, inverters must stop sending generation to the grid when there is a grid failure. This is a serious concern for utilities because they do not want any utility lines to be energized while they are trying to fix the cause of the power outage.
It is recommended and suggested in the Interconnection and Parallel Operation Agreement (supporting documentation for the Participation Agreement) that the participant must install a manual, lockable, visible load break disconnect switch between the generation facility and the distribution system. The participant must also ensure that the manual disconnect is readily accessible to the power company.
As a result, GPS Generation Partners participants will not be able to supply power to their homes during the event of an outage due to safety concerns and should discuss other outage options with their local power company.