To connect your PV system to the utility grid, you will be required to enter into an interconnection agreement and a purchase and sale agreement. Utilities all have a standard interconnection agreement for small photovoltaic systems. The interconnection agreement specifies the terms and conditions under which your system will be connected to the utility grid. These will include your obligation to obtain permits and insurance, maintain the system in good working order, and operate it safely. The purchase and sale agreement specifies the metering arrangements, the payment for generation, and any other related issues.
You may have heard of the term net metering. Net metering allows eligible customers with PV systems to connect to the grid with their existing single meter and customers are billed monthly for the “net” energy consumed. The meter spins forward when electricity is flowing from the utility into the building and spins backward when power is flowing from the building to the utility. The electricity is bought from and sold to the utility at the same rate reflecting the market value of the commodity at the point of delivery. In Ontario we use the Standard Offer which allows us to sell everything generated at the rate determined by the Ontario Power Authority (OPA) at the time you receive your conditional offer for a 20 year contact. Your existing consumption meter and payments are unchanged.