stacked projects

Sharing the Burden and the Benefits: The Quandary of Allocating DER Interconnection Costs

Interconnecting DERs to the distribution grid is generally a “cost-causer pays” system: consumers who want solar pay for necessary distribution system upgrades, even when the upgrades will likely support future interconnection projects. What’s more, future projects benefit from investment in the grid’s infrastructure and could escape upgrade fees. Economics and fairness theories aside, this practice can kill perfectly viable and beneficial projects that didn’t budget for high upgrade costs and cause major delays in the process.

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