Interconnection activity expanding, from Mike Johnson, Manager of Safety/Key Accounts/Accounting
September 2024
Adams Electric serves mostly rural areas in five counties in South Central Pennsylvania. This leads many to believe that our members are not diverse. However, the opposite holds true, and we see that diversity every day when interacting with our members. The board of directors from a governance standpoint and the employees from an operational viewpoint spend a lot of time discussing impacts of programs, rates, industry trends, technology changes and so much more to balance the needs of our diverse membership.
The cooperative started interconnecting alternative generation (mostly solar) projects to our distribution system in early 2007. We have heard all the debates on the pros and cons to solar as a power source and as an electric distribution cooperative it is not our job to pick a side in those debates. As a member-owned cooperative, it is our responsibility to collaborate with all members in the fairest way possible. As we close-in on almost two decades since that first member installed solar, we now have more than 330 members who have interconnected to our distribution system.
For the first time since mid-2008 all these interconnected members are covered by the same interconnection and power purchase (IPPA) agreement. We had many updated versions of that complicated contract over the years, and it was challenging to manage those multiple versions. Members who were interconnected prior to 2023 received a notice last summer that Adams Electric was ending their IPPA agreement at the end of 2023. We did this to create a singular, more consistent and more manageable agreement for our members using renewable energy.
While every contract version had a termination clause in it, some members were shocked when they received that letter. Part of the shock was confusion regarding the program and if it was ending completely and the other part of the shock was the detailed and very corporate tone to the letter versus the usual friendly cooperative tone. For those alternative generation members who didn’t appreciate the tone of the letter, we do apologize for the corporate approach. While we needed the new contract to be taken seriously, we should have sprinkled in more co-op friendly language in there as well.
For our nearly 30,000 members who are reading this article and do not have an alternative generation account you may be wondering what this has to do with you. While you currently do not have an alternative generation system interconnected today, they are becoming more prevalent in our communities. You see neighbors installing solar on their homes, and farmers leasing out large fields. You might even see the occasional windmill while driving down a rural road. Again, we are not joining in the debate about these systems, but it is our obligation to interconnect them in the fairest way possible. It is also our responsibility to assist those members interested in alternative generation so we can explain how the process works with the cooperative.
Adams Electric does not have the resources needed to determine if solar would work for you or not. What we can tell you is how the interconnection process will work under co-op policies and procedures and how the solar rate will appear on your electric bill. (Adams Electric also changed its net metering billing practice at the beginning of 2024 to make the rate more equitable to all members of the cooperative.) This will vary greatly compared to other electric utilities and many salespeople do not always provide the most accurate information.
Our best advice to you is to not sign anything until you or your contractor contacts us FIRST! Gather as much information about a potential interconnection as you can and then contact us to verify that information is accurate and within our operating guidelines. Gain, we recommend you do not sign anything until you contact us. We have had so many discussions with members after they signed a contract with a solar installer and then it’s too late to correct the misinformation. In addition, there is a contract (IPPA) agreement) required between any member installing an alternative generation project, the cooperative, and Allegheny Electric Cooperative (our transmission provider and the actual buyer of the generated electricity).
At the end of the day, we are still your trusted energy provider and advisor, and we want to be here to help. While diversity challenges us to be everything to all our members, we will continue to try to assist each member individually in your energy conservation endeavors.
Points to Consider Before Installing Rooftop Solar
“Free energy from the sun and lower electric bills… Where do I sign up?”
The benefits of installing rooftop solar panels may seem like a no-brainer, but the reality is, not every home (and homeowner’s situation) is always right for solar.
There are several factors to consider before pulling the trigger on a rooftop solar system, like determining if your home will receive enough sun to achieve your goals, finding the right contractor, negotiating contracts and other important details.
Investing in solar for your home is a major decision. If you’re considering rooftop solar, your local electric provider can usually help.
Here are eight questions to consider before installing rooftop solar panels.
Questions to Consider before installing rooftop panels
If your primary goal is to save money on electric bills, you may be able to achieve this by identifying areas of the home for maximum energy savings. Request a copy of the 101 Ways to Save Energy brochure from Adams Electric
Your roof should be in good condition before installing solar panels. If your roof is old and in poor shape, it may need to be replaced before panels can be mounted. Additionally, your roof should receive a lot of sun to make the most of a rooftop system. Consider how much sun (and shade) the roof receives and if any trees will need to be removed. Solar panels perform best when facing south, so keep this in mind as you think about where the panels will be mounted.
If you’re considering rooftop solar, you’re likely planning to stay in the home for several years. But if you plan to sell the home at some point down the road, consider that not all potential buyers will want to maintain a rooftop solar system. If you enter into a contract to lease the system, carefully review the terms and what those mean if you decide to sell the property.
Purchasing a rooftop solar system outright is expensive, which is why many homeowners opt to lease their solar panels. However, federal tax credits may help cover some of the costs for a new system. Regardless of how you decide to finance the solar system, make sure you get several quotes from qualified contractors.
It may seem obvious but be sure to request proof and documentation of the contractor’s licensing, permitting and other credentials. Comb through company reviews, check the contractor’s status with the Better Business Bureau, etc. –– do your homework on the front end and don’t sign a contract at your first meeting.
If you decide to hire a contractor to install rooftop solar, carefully read the fine print of the contract. Do the system performance calculations seem realistic? Does the project timeframe sound reasonable? Does the contract fit within the guidelines and requirements of an Adams Electric Cooperative IPPA agreement? Negotiate the contract terms to fit your goals and needs.
Determining who is responsible for maintaining the solar panels will depend on who owns the system. If you lease the system from a solar installer, it may be their responsibility. Periodically, solar panels need to be cleaned as dirt and debris can impact panel productivity. Parts may also need to be replaced, so it’s important to know who will take on these responsibilities.
Finally, if you decide to install solar the system must be connected to the electric grid, so you’ll need to sign an interconnection agreement. We can walk you through the steps, including how our solar rates and fees work. Set up an appointment with an energy use specialist at Adams Electric by calling 1-800-726-2324.
Ed and Mary Franco, Lower Frankford, Cumberland County, members since 1981
We installed our photovoltaic system on our south facing barn roof in March of 2010 using the 2009 Pennsylvania Sunshine Residential Solar Program to assist with 35% of the cost.
The Pa. Sunshine program limited financial assistance to 10 kw systems. Therefore, our 9.6 kw system consists of 48 Suntech flush-mounted 200-watt panels. Each panel is approximately 3x5-feet covering an area of the roof 21x42-feet. We have a Fronius Inverter to change the direct current from the array to alternating current for our use.
Pennsylvania’s Electrical Net Metering Law December 2006 helped to make photovoltaic systems possible for residential customers without battery backup and total off grid systems. The availability of Federal Residential Energy Tax Credits (30%) and the 2009 Pennsylvania Sunshine Rebate Program (35%) led to our decision to install a photovoltaic system for energy conservation. We carefully evaluated the life span of the system, the cost and the amount of time that it would take to pay off the system. Mary and I built a passive solar home in 1981. Our house faces “Solar South.” Our barn is oriented like our home, so the south facing peaked roof and angle are close to ideal for the solar array.
Yes. We have been very pleased with the system, its reliability and its non-intrusive placement on our barn roof. In 2009-10 the cost of this 9.6 kw system was $57,500 installed ($37,300 of that cost was recouped in the first year through rebate and tax credits). Today the price of panels has come down significantly, a similar system today costs roughly $30,000 before any tax credits.
The volatility in Solar Renewable Energy Credit (SREC) prices was more extreme than we had expected. During the first two years of production, we received approximately $275 for each of the 12 SRECs we generated, which we sold through an aggregator. By year three the SREC rate in Pennsylvania had dropped to $18 an SREC. In the ensuing years the SREC rate for Pennsylvania has gone as low as $5 and as high as $50. A bill was passed by the state legislature to “close the borders,” so Pennsylvania solar producers would see an increase in their SREC rates. This led to a modest increase, I just received a payment at $36 per SREC.
During the same period, the Pa. Public Utility Commission publicized the fact that price caps on electric rates were going to be expiring. Because we are Adams Electric member-owners, we recognized that those changes probably would not dramatically affect our electric rates. I therefore took a very conservative approach to projecting the length of time to completely “pay off” the approximately $20,000 investment from savings on electric bills and lower SREC payments. This was achieved in 2022 after 12 years.
Our solar array made our recent purchase of a plug-in hybrid vehicle attractive due to the fact we can charge it during the day at a small cost. In general, the array also reduces our contribution to air pollution locally.
Really, the only drawback was the 12-year period to pay off the system. We have been pleased however that the system has not required any maintenance and that it is still producing 95% of its capacity. We now anticipate that the array should not significantly reduce its output for another 15 years.
I appreciate your focusing on a few solar users in the local region.
I found the questions and digging through some of my data and records useful and helpful as an overview.
I would specifically ask that Adams Electric consider sending a similar questionnaire to all 300 solar producers on co-op lines.
I also would specifically ask that after you compile the responses from hopefully most of those 300 Adams Electric members, that you hold a conference for us in Gettysburg to discuss ways that we can work together to enhance the use of solar to the benefit of Adams Electric and our fellow owners.
The recent inclusion of Battery Back ups (e.g. Tesla Power Walls) in the Federal Tax Incentive Program could enhance Adams Electric’s ability to reap maximum benefit from solar producers during the highest demand times which I understand are hot humid days between 2 and 7 p.m.
Rich and Debby Luquette, Liberty Township, Adams County members since 2015
Our system was installed in 2017. It became operational on May 10, 2017.
Our system consists of 33 rooftop mounted panels with a rating of 11.2 kW. The panels are divided into two strings, each feeding a separate inverter. The system was sized to generate approximately 100% of our projected annual power consumption.
Environmental stewardship is the primary driver behind our decision to install solar. Solar provides clean renewable energy while reducing our dependence on fossil fuel. Secondarily, installing solar has proven an economically sound investment for us.
Absolutely. Although I would change the system design approach. The system was designed with the goal of optimizing economic return. In retrospect, I would seek a design that minimizes the cost per kilowatt output. In my case, I could have added three additional panels without changing the inverters or other parts of the system
Probably the most interesting and unexpected “feature” of the system is the avalanche risk that follows a significant snowfall. A heavy accumulation of snow on a shingled roof tends to stay in place as the snow melts. Solar panels have a glassy surface which lacks the friction to hold back a heavy snow load. As the snow melts the volume of snow covering the panels can suddenly slide down, clearing the panels in an avalanche event. We’ve learned to keep the avalanche target area clear. Snow guards are available for panel arrays to limit avalanche risk. The good news: the avalanche cleared the panels of snow allowing them to resume generating power.
Following the stated motivation for installing solar, the major benefits are the shift to renewable energy coupled with lower energy costs over the life of the system. Additionally, research indicates residential solar installations increase home values. Currently we have not experienced any notable drawbacks.
Advances in small scale electrical generation and storage are changing the landscape of the traditional approach to electrical distribution. Within the Adams Electric community members can install their own alternative energy sources and storage. These systems provide opportunities for the Co-op for reducing external generation demand during peak hours. Properly configured storage systems can be tapped to limit peak loading. Simultaneously this changing landscape imposes challenges from distribution system design and maintenance to equitable billing.
I suggest it would benefit the Co-op management team and the general membership to hold a periodic forum to present and discuss the integration of emerging technologies throughout the Co-op’s entire energy network from production to consumption. This should be separate from the Annual Membership meeting. The forum would serve to educate and guide members interested in investing in alternative energy and storage systems. This would assist members in selecting appropriate technology as well as help evaluating the economic benefits. Co-op leaders would benefit from direct feedback from members. Members would learn from other members. Providers of alternative energy and storage systems could learn about the unique characteristics of the Co-op that differ from the general utility industry.
