Tennessee Valley Authority
More Information for Participants
Participation in Generation Partners is a three-way agreement involving:
- The participant, a homeowner or business that generates renewable energy and receives credit or compensation from the power distributor
- The distributor, which distributes the power and compensates the participant
- TVA, which buys the renewable generation from the distributor for its Green Power Switch program, and which owns the renewable generation credits. These credits may help businesses meet environmental legal obligations and are traded in international markets.
System Owner
The generation system may be owned by a fourth party, someone other than the participant, who is paid by the participant for use of the system on-site. If the system owner is not the participant, the owner must also sign the participation agreement.
The participant, but not the system owner, is guaranteed credit for power generation for 10 years. Payment to the owner is negotiated by the owner and the participant separately from the participation agreement.
Metering
Payment to the participant for generation is usually issued in the form of a credit on the participant’s monthly power bill by the local power company, which owns the meters that track both the power use of the home or business as well as the output of the renewable generation system. The power company provides monthly statements showing energy used and any applicable credit due. The power bill is reconciled monthly with these energy credits.
The distributor may choose to carry over each month’s credit to the next bill, then make payment of a lump sum for the cumulative credit at the end of 12 months.
System Requirements
The power generation system must comply with all requirements established by the local power company for interconnection to its distribution system, including signing an interconnection agreement separate from the participation agreement.
Interconnection and safety equipment must be listed by UL or ETL (nationally recognized testing labs) for continuous interactive operation with an electric distribution system.
All equipment must:
- Include a manual load break disconnect switch that is lockable, visible and easily accessible by the local power company
- Be manufactured and installed in compliance with the National Electric Code
- Be permitted and certified by a licensed electrician, and pass applicable code inspections.