Green Power Providers FAQs

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• What is Green Power Providers?

  Green Power Providers is a TVA renewable energy initiative that provides technical support and incentives for the installation of renewable generation facilities. Green Power Providers incorporates lessons learned from the Generation Partners pilot program that was initiated in 2003 as a result of requests from users of TVA power for "net metering" standards in the TVA service territory. Best practices from other utility performance-based programs were also incorporated. Green Power Providers is the new long-term program that has replaced the Generation Partners pilot program.

  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 contracts with its local power companies, net metering is not an option in the TVA service territory. TVA created Green Power Providers as a "dual metering" option, an alternative to net metering. With the Green Power Providers program, there are two meters; TVA purchases 100 percent of the green energy output and then uses solar, wind, low-impact hydropower, and biomass as Green Power Switch resources.

  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 a wastewater treatment plant.

• What are the benefits of participation in Green Power Providers?

  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 four months.

  In addition, solar systems help improve air quality by reducing emissions of fine particulate matter, nitrogen oxides and sulfur dioxide. Participants 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.

  Qualifying your system: Which renewable resources and technologies are eligible for the program?

  Projects that generate electricity from technologies using any one of the following sources are eligible: solar, wind, low-impact hydropwer, and biomass.

  Biomass includes all solid, liquid, and gaseous forms of these fuels:

   

  • Woody waste
  • Agricultural crops or waste
  • Animal or other organic waste
  • Energy crops
  • Landfill gas and wastewater methane

   

  Go to the Renewable Energy Resources page to learn more about each technology.

• What changes to the Green Power Providers Program are being implemented?

  After September 16, 2011, TVA is shifting its maximum project size from 200 kW to 50 kW DC.  Attachment A, Participation Agreement, has been modified to support the change to a pilot program cap of 50 kW. The new Participation Agreement will be posted on www.generationpartners.com. Although TVA has established a maximum 50 kW cap for the Green Power Providers Program, project participation will remain subject to the system configuration and capacity constraints of individual Local Power Company.

• How do I sign-up for Green Power Providers?

  You can become a Green Power Provider by following these steps:

  1. Contact Warren RECC at 270-842-6541.
  2. Read and understand the Green Power Providers Program Guidelines on the TVA website to ensure the renewable generation system you would like to install qualifies.
  3. Gather information on what incentives are available and contact industry professionals to get estimates on installing your system.
  4. Apply at Warren RECC to become a participant.
  5. After you receive approval from TVA and Warren RECC, purchase and install the system. Keep in mind that solar photovoltaic and wind installations must be completed by installers who have completed and passed the North American Board of Certified Energy Practitioners (NABCEP) entry-level installer examination.
  6. Apply for incentives and tax credits. Start generating power and watch your monthly bill go down!

• Is there a deadline to get my system installed?

  The generating system must be installed and approved by Warren RECC within 180 Calendar Days of TVA's approval of the Participation Agreement. This information can be found in section 2.1 of the Participation Agreement. Solar and wind installations approved by TVA in Calendar Year 2013 must be installed by a renewable energy professional that has passed the NABCEP Entry Level Exam at a minimum. NABCEP is an acronym for the North American Board of Certified Energy Practitioners (www.nabcep.org). The system must comply with environmental regulations and national standards, be certified by a licensed electrician, and comply with all applicable codes.

• What if I can't get my system installed within the six months allowed in the Participation Agreement?

  Systems that are not installed and approved by Warren RECC within 180 Calendar Days of TVA approval will have to reapply in line with other applications, subject to the terms and conditions of the program at the time TVA provides final approval on the agreement.

• When is my premium locked in? When my Participation Agreement is signed by TVA or when the system is completed? How will I know what premium I will get?

  The premium will be determined based on the renewable technology, and the date and calendar year on which TVA executes the Participation Agreement. The applicable premiums for each calendar year will be provided in the Program Guidelines, which should be read and understood by the Participant before applying for Green Power Providers. Please note the qualifying system(s) must be completed, installed, approved by Warren RECC and generating at full capacity within 180 calendar days from the date TVA executes the Participation Agreement in order to receive the premium rate for that calendar year.

• If I get my Participation Agreement approved by TVA and receive a certain premium for solar, could my premium decline in 2013, 2014, etc?

  No, the premium available for a particular calendar year is locked in for a full 10 years once a participant verifies that 1) an Interconnection Application has been submitted to and approved by Warren RECC, and 2) participant, Warren RECC and TVA have signed and dated the Participation Agreement. The premium is determined based on the renewable technology, and the date and calendar year on which TVA executes the Participation Agreement.

• What factors will TVA consider when reviewing and evaluating premium incentives?

  TVA will consider a number of factors, including:

  • Market- program participation, other available incentives and Green Power Switch participation
  • Cost- installed cost of renewable energy systems
  • Budget- annual review process
  • Value- including potential renewable and/or clean energy legislation

• Why does TVA plan to review and evaluate premiums annually with plans to phase them out over time?

  As renewable energy system costs continue to decrease and become more affordable, there is less need for subsidies for small-scale renewable generation. TVA wants to promote sustainable growth in small-scale renewable generation while continuing to support local industry and provide a smooth path to grid parity. In addition, the annual premium review and decline of premiums aligns with the Integrated Resource Plan (IRP) which states that TVA has a goal of adding 1,500 to 2,500 MW of cost effective renewable capacity by 2020.

• What are the new, adjusted premiums and associated schedule?

  As TVA has previously committed, premium incentives for Green Power Providers remained at previous Generation Partners levels through calendar year 2012. The incentives for calendar year 2013 will be made available in December 2012.

• How far in advance will TVA announce the premium for the next calendar year?

  TVA will review the program and incentives annually and will publish a revised Program Guidelines document which will contain the new premium rate for the following calendar year on the program's website (www.tvagreenpowerproviders.com) in December.

• Why has the contract term been set at 20 years?

  Many stakeholders requested that we consider a longer contract term for a number of reasons, including: 1) some eligible renewable generation technologies have expected lifetimes of 20 years and are under warranty for up to 20-25 years, and 2) a 20-year term allows customers to more easily attain financing for projects.

• I currently participate in Generation Partners and I would like to extend my Participation Agreement an additional 10 years...What do I need to do?

  Existing Generation Partners participants may qualify for a contract extension for an additional 10 years to be paid at the applicable retail rate only. No premium will be paid during the latter 10 years, and TVA will own the Renewable Energy Credits (RECs) for the full 20-year term. Existing Generation Partners participants may receive an extension offer from TVA or Warren RECC in the spring of 2013 and it will be a limited-time offer. Please note that this offer will amend the existing Generation Partners Participation Agreement and will also incorporate several Green Power Providers provisions.

• What happens if the annual megawatt capacity is met for the calendar year, and I have a Participation Agreement submitted to TVA for approval?

  TVA's process will be to review Participation Agreements in the order received. Depending on how many Participation Agreements are in the queue, it is possible that some may be denied due to there no longer being any capacity available for that calendar year. In this event, TVA will stop accepting any new Participation Agreements and will "deny" any Participation Agreements in the queue, provide an explanation of why it was denied, and return it to Warren RECC.

• What happens if some approved projects do not come to fruition and capacity becomes available?

  If and when the MW limit for any given year is reached, TVA will publish on the Program's website such news as soon as it becomes available and stop accepting Participation Agreements for that particular year. TVA will notify the public via the Program's website if eligible capacity becomes available in that same year and may start accepting new Participation Agreements. If capacity does not become available, TVA will begin receiving Participation Agreements on January 1 of the following calendar year.

• As a Generation Partners participant, will I be subject to the load requirement for system increases?

  TVA and Warren RECC may offer an amendatory agreement in the spring of 2013 to existing Generation Partners (GP) participants providing an additional 10 years at retail rates for years 11-20 for their existing generation. The offer will include specific provisions that align with Green Power Providers (maximum of 50 kW, capacity modifications subject to load requirement, annual MW availability, etc.). This tri-party amendatory agreement will be a limited, one-time offer.

  Please note, TVA will not approve any capacity modifications (kW increases) for existing GP installations until this amendatory agreement has been signed by the participant, Warren RECC, and TVA.

• Are interval meters still required for projects above 10 kW?

  Yes, interval meters are still required for all systems greater than 10 kW. For all of these systems, a DCMS form is required. Attachment B, Distributor's Acceptance of Qualifying System, has been updated to reflect requirements made by TVA for DCMS form on all systems over 10kW.

• Can a customer submit multiple Participation Agreements of 50 kW for the same location?

  After September 16, 2011 , multiple projects of the same or different resource type are allowed at a site as long as the total combined capacity (aggregate) is no more than 50 kW.

• Does 50 kW maximum apply to wind/biomass also?

  Yes, the maximum project size of 50 kW applies to all eligible resources in the Green Power Providers program.

• Does the $1,000 credit still apply?

  Yes, if the project has not previously been enrolled in the Generation Partners pilot, a one-time $1,000 payment will be made to participant by the Local Power Company for each type of qualifying system installed.

• What if a customer's potential project isn't feasible at the new 50 kW cap?

  Projects over the new 50kW Green Power Providers cap may be better suited for the Renewable Standard Offer. Eligibility for the Renewable Standard Offer product has been lowered to projects greater than 50 kW in coordination with the Pilot modifications.

• Do distributors have to accept all Green Power Providers projects up to 50kW?

  Although TVA has established a maximum 50 kW cap for the Green Power Providers Program, project participation remains subject to the system configuration and capacity constraints of individual Local Power Company.

• In the event of a power outage, will I be able to supply power to my home?

  In order to be a participant in Green Power Providers, 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 from flowing to the grid during an outage. When an inverter continues to electrify the grid during an outage, that 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 in the Interconnection and Parallel Operation Agreement (the supporting documentation for the Participation Agreement) that the participant be required to 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.

  Due to these safety concerns, Green Power Providers participants will not be able to supply power to their homes during an outage and should discuss other outage options with their local power company.

• 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)
  • 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. Systems must be permitted and certified by a licensed electrician in addition to 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, Green Power Providers 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 the local power company, who have the ability and authority to lock out the power from the grid via the disconnect device. For more information about safety, see the following sites:

  • National Fire Protection Association
  • Underwriters Laboratories (UL)
  • Institute of Electrical and Electronics Engineers (IEEE)
  • Solar Electric Power Association

• Is the generation credit on my electric bill considered income and therefore reportable on my taxes?

  Please consult your tax professional for any tax question you may have.