U.S. Department of Energy - Energy Efficiency and Renewable Energy

Distributed Energy Program

Siting, Permitting and Environmental Regulations

Distributed generators are subject to a wide variety of rules and regulations — everything from local zoning requirements to the Clean Air Act.

It can be a real challenge to navigate the permitting process, especially because of the varying rules in different states and utility districts. If you're interested in installing a distributed generator, but don't have the time or inclination to deal with all the technical and legal issues, you can hire an integrated service provider (ISP) to handle everything from the initial site analysis and permitting to construction and interconnection. Many ISPs operate exclusively in one state, specializing in projects that meet local regulations and requirements.

The following diagram outlines the steps involved in obtaining the various permits and approvals for a distributed generation project:

To ensure a successful project, site analysis, permitting, and utility interconnection processes must occur simultaneously. Each process consists of four steps and some process steps are interlinked. The site analysis process entails conducting a feasibility study, deciding whether or not to proceed with a project, conducting the necessary design and engineering for the project, and deciding on how to finance the system. The permitting process entails first performing an environmental analysis, then obtaining the necessary air, water, historical, or other permits, obtaining a zoning permit, and finally obtaining a construction permit. The interconnection process entails first contacting the local utility to see if interconnection is an option, then applying for grid interconnection, conducting the necessary interconnection engineering, and finally obtaining the interconnection approval. The decision whether to proceed depends not only on the results of the feasibility study, but also on the provisions for interconnection to the local utility. For instance, some utilities may outrightly prohibit interconnection to their grid. The decision to proceed also depends on the ability to obtain the necessary environmental permits for the DG technology being considered. The design and engineering of the project is also linked to the ability to obtain environmental permits. For instance, more stringent combustion controls or exhaust treatments may be required to obtain an air permit.

To learn more about the permitting process, please visit the following links: