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In addition to environmental regulations, distributed energy projects are subject to a wide range of codes and regulations.
The National Electric Code; the National Life-Safety Code; and the International Fuel Gas, Plumbing, Mechanical, Building, and Fire Codes are the key references for local code officials. For the most part, these codes do not address some of the newer distributed generation technologies, such as microturbines and fuel cells. And most code officials have little or no experience in permitting such installations. Therefore, code officials may require a number of design, test, and documentation reviews before approving a distributed energy installation.
Permitting requirements vary considerably with the type of technology installed. Photovoltaic and fuel cell systems, for example, are generally easier to site because of their inherently low emissions and silent operation. If a building is needed to house the system, additional building codes and permits will apply.
Siting and permitting costs vary greatly with project size, location, complexity, and the degree of involvement of outside parties. In Siting of DR Units: Rules of the Game (PDF 332 KB) Download Acrobat Reader, Resource Dynamics Corporation estimates that total "soft costs" — including engineering, permitting, interconnection, installation, and testing — can run from about $200/kW to $900/kW for projects with a generating capacity in the range of 50 kW to 10 MW. Since many of these costs are fixed, larger distributed energy projects have lower soft costs per kilowatt of capacity installed.
The siting process can be straightforward with good planning, but complications often increase project time and costs.
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