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To buy and install DER, particularly distributed generation, you need to:
There are four types of companies that may sell and install DER technologies. Original equipment manufacturers will in some cases also offer direct customer sales and system installation services; however, in most cases the manufacturers work through a network of distributors that handle the sale, installation, and service of their equipment.
Energy service companies have for years offered energy efficiency services, and many are also starting to include distributed generation technologies as part of their effort to meet the total energy needs of their customers. Energy service companies offer a variety of energy solutions and energy services that meet the needs of the commercial, industrial, and government sectors. In many cases, the companies will pay the capital cost for energy installations in return for a share of the energy savings that result from the installations.
Finally, some system integrators are also incorporating distributed generation products, such as microturbines, into integrated products such as combined heat and power systems.
Siting may be an issue if your DER system creates noise, emissions, or has a negative visual impact. Photovoltaic systems can usually avoid siting issues, particularly if they are integrated into the roof of a building, but they may face resistance in some communities with strict rules on building appearance, or in areas designated as historic. Small wind turbines are generally not recommended for urban locations due to visual and potential noise impacts, but are usually easy to site in rural locations.
Hydroelectric systems have special requirements, particularly if they involve the construction of a dam, since that generates potential safety issues downstream. Because of their effects on streams, hydroelectric systems often require environmental assessments and may even require approval from the Federal Energy Regulatory Commission.
Fuel cell systems are generally easy to site because of their low emissions and silent operation, but other generation systems are likely to fall under state, local, and federal restrictions on air emissions. If the system generates noise that can be heard offsite, local opposition to the installation may also arise. And of course, if a building is needed to house the facility, applicable building codes and permits will also apply.
If a company is installing your system for you, they may be able to assist you in meeting the siting requirements for your system. However, if you are contracting or performing the installation yourself, you will need to work closely with state and local officials to be sure to meet all codes and regulations.
Most distributed generation technologies — including microturbines, engine-driven turbines, gas turbines, and utility-scale wind turbines — produce high-quality alternating current and are designed to be connected to the power grid. Photovoltaic systems, small wind turbines, small hydropower systems, and fuel cells generally produce direct current and require an inverter and other power conditioning equipment to connect to the grid. Power conditioning equipment may also include charge controllers if a storage device is used, and generally includes surge protection, grounding, and instrumentation and meters. UL1741 sets the standards for power conditioning equipment.
As noted in the section about state and local factors, your local utility may also require manual disconnects, special meters, isolation transformers, redundant breakers, and other devices for grid interconnection. It is important to work closely with your local utility to identify these requirements in advance. Your system installer should also be able to help you work with the utility to overcome any hurdles.
If you are a homeowner or a small business owner, you may want to buy separately the distributed generator, any energy storage equipment such as batteries, and the power conditioning equipment. If so, you may want to familiarize yourself with the Make Your Own Clean Electricity section of Energy Savers Web site. Although this focuses on producing electricity from renewable energy sources, the information regarding grid interconnection is applicable to other generation technologies.
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