National Grid Seeks To Increase Utility-Owned Solar Generation by Two-Thirds, Addresses Cost Recovery, Treatment of Output

National Grid has petitioned the Massachusetts DPU to own and operate up to an additional 14 MW of solar generation, as authorized by state law

National Grid currently owns or is developing 21 MW of utility-owned solar under prior DPU authorizations

The size of the systems that the National Grid seeks to own and operate at a given location could range from a minimum direct current (DC) nameplate capacity of 60 kW to a maximum DC nameplate capacity of 5,000 kW.

National Grid said that contracting with customer-owned solar facilities would not be able to provide the distribution grid research and other benefits National Grid is seeking to achieve with the development. "Existing and proposed customer-owned solar projects are generally designed to maximize energy output, compensation from net metering, and market proceeds for the environmental attributes produced. The Company’s proposed Solar Phase III Program systems will be located in specifically targeted locations and will have characteristics to benefit the existing distribution system in that area. It is improbable that customer-owned systems would possess the desired features or present the desired test cases in the Company’s targeted locations, and provide the Company with full control of the systems and any additional technologies," National Grid said

National Grid seeks to recover costs of the development via the current nonbypassable solar surcharge.

National Grid said that, "The Company intends to treat the output and products generated by the solar systems within its Solar Phase III Program in the same or a similar manner as it treats the energy output of the solar units from the Solar Phase I and Solar Phase II Programs by passing through net proceeds received to customers. The Company would credit this value to the benefit of all customers in the annual solar reconciliations."

However, National Grid also said, with respect to RECs from the utility-owned systems, "the Company would use any environmental attributes that would be produced by its solar generation facilities to meet such LSE [RPS] obligations for the benefit of its customers."