Distributed Energy Resource Program

Cloverland Electric Cooperative participates in a uniform statewide Distributed Energy Resource (DER) program for wind, solar, and other approved renewable systems.

DER Standard Operating Procedures

DER Categories

Level Size
Level 1 0 to 20 kWAC
Level 2 >20 kWAC to 150 kWAC
Level 3 >150 kWAC to 550 kWAC
Level 4 >550 kWAC to 1 MWAC
Level 5 >1 MWAC
  • Members can install Level 1 or 2 DERs sized to meet, not to exceed, their annual energy needs and receive a credit on their electric bill for the excess generation delivered onto the cooperative’s distribution system at the full retail rate. Energy produced by the DER will not offset any fixed facility charges or demand charges.
  • Level 3, 4, and 5 DERs follow a similar interconnection process, however, the sale of any generation would either be negotiated with Cloverland Electric Cooperative or could be sold on the open market.  Level 3, 4, and 5 DERs must be interconnected directly to Cloverland’s distribution grid.
  • DER participants are required to comply with electric distribution interconnection rules and standards established by the Michigan Public Service Commission (MPSC) and sign an interconnection agreement before the operation of a renewable generator can commence within Cloverland’s DER program.
  • Cloverland must approve the project for the parallel operation of your generator with the utility grid. Small renewable systems can affect the safety and reliability of the distribution system. Interconnection rules and standards help ensure that the cooperative can continue to provide members with safe and reliable electricity.

Distributed Energy Resource Program Procedures

The electric generator must be fueled by a qualified renewable energy resource (i.e. solar, wind) as outlined in the generator interconnection requirements approved by the Michigan Public Service Commission. For Level 1 and 2 DERs, the generator must be installed on the member’s premises, serve only those premises, be connected to and serve a single meter, and sized to meet the member’s electric needs. The DER generation may not exceed the member’s annual energy needs in kilowatt-hours (kwh).
  • For Level 1 and 2 DERs, complete and submit form DER-F003-Interconnection Application (Non-refundable Application Fee).
  • Level 3, 4, and 5 DERs must complete and submit Form DER-F001 – Pre-Application Request Form.
  • Cloverland will evaluate all applications to determine if a System Impact Study (SIS) or a Facilities Study is required.
  • Either after all studies are completed or if no studies were required, the applicant will sign and agree to the contents of an Interconnection and Parallel Operating Agreement (Form DER-F006).
  • If necessary, any specified system improvements will need to be completed before interconnection at the applicant’s expense.
  • Inspection, testing, and commissioning will be completed when the DER has passed all State and/or Local Electrical Inspection requirements.
  • Pending a successful Inspection and test, the DER will be authorized for operation.

All application fees, procedures, and requirements are contained in the Michigan Public Service Commission’s Interconnection Standards Rules (R 460.901-460.992) and the Commission-approved Generator Interconnection Requirements. A State of Michigan or local electrical authority will require an inspection before final electrical connections are made.

Member is required to submit electrical diagrams and schematics documenting the interconnection and technical specifications of the interconnection equipment as part of the Interconnection Agreement and Application. The cooperative reserves the right to refuse any system design it deems unsafe and/or improperly engineered. Interconnection equipment must be UL-1471 approved for grid tie applications and meet IEEE 519 and 1547 standards.

When designed for parallel operation, facilities must be designed to operate with CEC’s system without adversely affecting the operation of CEC’s equipment, other members’ services, or presenting any safety hazards.

Member must have a means of disconnect to isolate the generation system from the Cloverland System.  This means of disconnect must be accessible to Cloverland Employees, located within ten feet (10’) of the meter, lockable, and must provide a visible break feature (i.e. safety switch).  For larger, standalone systems, the means of disconnect may be located more than ten feet from the source of generation at an agreed upon location between the applicant and Cloverland.

The interconnection rules and requirements will determine whether any additional equipment is required for the interconnection and to calculate and determine the assignment of costs. The member is responsible for all costs incurred by the cooperative to install and/or upgrade facilities to handle the member’s interconnected generation.

The cooperative will replace your current electronic meter with a bi-directional billing meter. This meter ensures proper billing credit for any excess generation. All metering equipment will be installed, maintained, read, and owned by the cooperative.

Members will be billed for the total amount of electricity (kwh) used at the premises, facility charges, demand charges, and other typical charges. The bill will include a credit for the amount of excess electricity generated on-site up to the amount of the monthly billed consumption.

For any energy generated beyond the current month’s consumption (billing period), you will receive Net Excess Generation credits (NEG). These NEG credits, if any, carry over to the next billing period and are used to offset the energy charges in the next billing period. These credits do not expire.

Members continue to pay the retail price for all purchased power based on MPSC-approved rate schedules. The NEG credit is currently the applicable retail rate (excluding any monthly facility charge).

Distributed Energy Resource Program Forms and Application

Questions?

Members with questions about the Distributed Energy Resource program can call Cloverland’s team at 800-562-4953 or email Simon Meilstrup – smeilstrup@cloverland.com.