Panel urges faster, fairer interconnection: flexible interconnection, payment plans and net‑crediting on the table

Witnesses told legislators that interconnection timelines and the allocation of grid upgrade costs are a major bottleneck for both distributed and utility-scale solar, and they urged state regulators to adopt reforms such as flexible interconnection, payment plans for interconnection deposits and net‑crediting to simplify customer billing.

"We've been working with the DPU on coming up with a payment plan, actually, a different type of payment plan for interconnection payments so that developers can secure their spot for interconnection," Elizabeth Mahoney said, describing an approach that would let developers make down payments rather than pay large sums years before grid upgrades are completed.

Industry witnesses described DPU proposals and rulemakings underway. Bronte Payne of Sunrun summarized some interconnection reforms under active consideration, including aligning simplified review thresholds at 25 kilowatts so small residential and commercial customers can size systems without triggering lengthy review, and said the DPU's Interconnection Review Group (IRG) was asked to propose a common system modification fee by Dec. 1 to allocate upgrade costs more equitably.

"Flexible interconnection can contain different elements," Payne said, listing approaches such as allowing customers to reduce exports temporarily to avoid grid upgrades or to manage imports and exports based on real-time conditions. DOER and others said a flexible interconnection program is in the governor's affordability bill and urged utilities to implement it quickly.

DOER also noted a new DPU net‑billing (net‑crediting) docket intended to make billing simpler for customers who participate in shared or third‑party projects: "If we have net crediting, the solar projects can be built… customers would only pay one bill through this process," Mahoney said, explaining it would lower administrative complexity and soft costs.

Why it matters: witnesses said the current practice of requiring an individual customer to bear the full cost of a grid upgrade (often $5,000–$10,000) discourages projects. Proposed reforms would spread those costs or allow temporary curtailment so more projects can connect sooner and preserve eligibility for federal incentives.

Ending: Multiple presenters urged quick DPU action on the interconnection fee proposal and for utilities to adopt payment plans and flexible interconnection arrangements so development can proceed before federal credit windows close.