A new rule from the California Public Utilities Commission is expected to simplify the interconnection process for distributed energy resources (DERs) like solar and battery storage systems.
Under the new rule, DER interconnection requests will be reviewed based on a hosting capacity analysis, which models conditions on the distribution grid. In California, the process is called an integration capacity analysis.
California also expanded the parameters for projects to be fast-tracked.
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The Interstate Renewable Energy Council, an organization that advocates for improved interconnection policies to spur distributed clean energy development, called the ruling "groundbreaking."
IREC said the CPUC decision is one of the most significant changes to the interconnection process in decades and could serve as a model to other states to address slow and expensive interconnection processes that have bogged down clean energy deployment efforts across the country.
“Today’s decision reflects the culmination of years of dogged engagement by IREC to enable the use of cutting-edge approaches that simplify the interconnection process so renewable energy can be deployed faster and more affordably,” said Larry Sherwood, IREC president and CEO.
IREC summarized the changes under the CPUC rule, saying the new process will replace the “15% of peak load” screen, which has historically been used to evaluate if a project requires more detailed review to determine whether any grid upgrades are needed before it is approved to interconnect. IREC said that under the newly adopted rules, projects that do not exceed 90% of available capacity as shown in the ICA (a conservative buffer requested by utilities) will be able to pass the new screen.
California is still working to implement a "limited generation profile" decision made by the CPUC in 2020. The rule would allow a DER to design a system using a generation profile to avoid system constraints that arise during different months of the year, IREC said.
