Frequently Asked Questions

Generation Partners^SM is a TVA renewable energy initiative that provides technical support and incentives for the installation of renewable generation facilities. It was started as a pilot program in 2003 as a result of requests from users of TVA power for “net metering” standards in the TVA service territory. 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 Generation Partners as a “dual metering” option, an alternative to net metering. With the Generation Partners 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. See more information on Green Power Switch.

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 hydropower 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.

The first step is to contact your local power company to apply for interconnection with the power grid and, once approved, sign interconnection and participation agreements with the distributor. Once you have signed the participation agreement with the distributor, TVA provides final approval on the agreement. Now you can go ahead and buy an eligible renewable generation system.

An eligible generating system must be installed within six months of TVA's approval. This information can be found in section 2.1 of the Participation Agreement.

If your qualifying system was approved by TVA after September 6, 2011, it must be completed within six months of TVA's approval. Systems that do not meet the 6 month installation deadline will have to reapply, subject to the terms and conditions of the program at the time TVA provides final approval on the agreement.

Prior to September 6, the maximum system size per project eligible for Generation Partners was just less than 200kW. On September 6, TVA reduced the maximum system size per project from 200 kW to no larger than 50 kW.  Based on existing program participation and for planning purposes, TVA has determined that the 6 month period allowed in the Participation Agreement is an adequate amount of time to complete the installation of a eligible generation system.

TVA does not recommend or require specific contractors and installers. However, it does recommend researching contractors to ensure quality work. System sizing tips, cost estimations, supplier/installer information, and related information can be researched at the following websites:

North American Board of Certified Energy Practitioners

NABCEP is a volunteer board working to develop national voluntary standards and certifications for renewable energy professionals, beginning with solar electric installers.

American Solar Energy Society

Consumer Energy Council of America, Distributed Energy Forum

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

U.S. Department of Energy, Energy Efficiency and Renewable Energy Solar Technology Division

Florida Solar Energy Center (Click on Research)

Tennessee Solar Energy Association

National Association of State Energy Officials

North Carolina Solar Center

National Renewable Energy Laboratory

Solar Electric Power Association

Low Impact Hydropower Institute

Biomass Magazine

Solar Energy Industries Association

Note: The listings provided here are for informational purposes only. The listing of any group or organization is not to be considered as an endorsement by TVA. TVA assumes no responsibility for actions taken by the mentioned groups or organizations.

Be sure to call your local power company before purchasing and installing a renewable generation source.

Participation in the program is entirely at the discretion of the power company. Go to Participating Power Companies for more information. If your local power company isn’t currently a participant in the program, let them know you are interested in installing renewable generation at your home or business.

Customers must submit an interconnection application to their local power company. The local power company will determine whether the project can be fast-tracked or if the project must undergo a feasibility study to determine the impact on the distribution system. Local power companies may alter the proposed interconnection procedures and agreement drafted by TVA to suit their local guidelines or processes. Contact your power company for more information.

Yes. Billing credits go to the person paying the bill.  Therefore, the renter or lessee (if commercial) must be the participant in the participation agreement.

In order to be a participant in Generation Partners, 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, Generation Partners 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.

TVA and distributors worked together in the product development process in 2009-10 and received feedback from consumers about the length of the contract. Overall, consumers indicated that a 10-year contract term, as opposed to a longer agreement, would meet their needs. 

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, Generation Partners 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

TVA looked at the incentives from several perspectives:

TVA

• Current renewable energy credit markets
• Purchasing emission allowances for potential renewable portfolio scenarios
• Cost to build and own renewable resources

Customer

• Comparison to current incentives
• Rate of return and payback analysis

Solar systems receive a higher premium than other projects because the cost of installing solar energy is generally much higher than for other renewable technologies. All premiums will be reviewed on an ongoing basis.

If the generation credit exceeds the sum of all charges and other credits on your power bill and you are therefore owed money for the billing period, your local power company may choose to carry over the payment due as an additional credit on your power bill for the following billing period. It may continue to do so for a total of 12 consecutive billing periods.

If at the end of this period the value of your generation credit exceeds the sum of all charges and other credits for that period, your local power company will issue a check to you for the balance due.

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

For a standard size solar system of 1.5 kW to 2 kW, a customer can expect to pay on average of $8 to $10 per watt for parts and installation. A typical-size wind turbine system averages $2 to $4 per watt for equipment, plus the cost of installation. There are several factors that must be taken into consideration when pricing either solar or wind systems, such as federal and state tax credits and rebates.

For example, a 2 kW solar photovoltaic (PV) installation averages 200 kWh per month, or roughly $44 per month generation credit:

200 kWh x $0.22/kWh (average retail rate of $0.09 + solar premium of $0.12) = $42

In comparison, a 10 kW solar PV installation would average generation credit of $210 per month.

• Federal tax credits (these are subtracted from the total tax liability, in contrast to a tax deduction)
• Solar – 30 percent residential and commercial tax credit with no cap through December 31, 2016
• Wind – Maximum system size of 100 kW, 30 percent tax credit. For systems placed in service in 2008, the maximum credit is $500 per half-kilowatt, not to exceed $4,000. There is no limit to the amount that can be claimed for systems placed in use after 2008 because the American Recovery and Reinvestment Act of 2009 removed a previous cap.
• State tax credits – vary by state
• Property tax credits – vary by state
• Additional information regarding federal and state incentives is available at the Database of State Incentives for Renewable Energy (DSIRE) website.
• $1,000 TVA incentive
• Financing for solar installations may be available.