Distributed Generation
& Your Co-op
903 455 1715 | FarmersElectric.coop | 2000 Interstate 30 East, Greenville, TX 75402
YOU’RE IN POWER.
Distributed Generation & Your Co-op
Since Farmers Electric Cooperative was established in 1937, our mission has
remained the same: to provide members reliable electricity at the lowest cost. In the
past several years, one phenomenon that affects how we accomplish that mission is
distributed generation (DG). This type of power generation has become more popular
as members become interested in alternative power sources and pursue additional
benefits such as tax incentives (www.dsireusa.org).
Defined as “any small-scale power generator located at or near the point of end use,” DG in Texas most
commonly means wind or solar power. In our area, DG systems are typically smaller member-owned
equipment (rather than a wind farm or solar farm, comprising a large collection of very big generators).
Farmers EC allows members to install wind generators or solar panels that interconnect with our system,
provided the installation meets certain conditions that protect the safety of members and cooperative
employees, maintain the integrity of the grid, and ensure each member shares appropriately in the costs.
Before installing a DG system, a co-op member has a number of factors to consider. The scale of the
DG system not only determines its cost and the percentage of the member’s power it will supply, but also
the terms by which it is allowed to connect to and sell power to Farmers EC distribution system. For DG
systems 50 kilowatts (kW) or smaller, Farmers EC will buy power through a Net Metering policy, which
keeps track of how much electricity the DG contributes versus how much power the member is using.
Systems larger than 50 kW deliver power directly to Farmers EC distribution system; the output is metered
and Farmers pays the owner of the generator for the power output at the wholesale or avoided cost rate.
How Net Metering Works
Most DG systems in our service area are 50 kW or smaller, and are therefore connected with Farmers EC
distribution system through Net Metering, which measures how much power the member is using and how
much the DG system is producing. Farmers EC essentially buys back the DG system’s power up to the
amount used by the member during a given billing cycle. Any power beyond that amount is given to the
co-op free of charge, and cannot be credited to another billing cycle.
Farmers EC will install a digital meter that can read both Delivered Power (from Farmers EC grid to the
member) and Received Power (from the member’s DG to Farmers EC grid, which occurs only when the
DG is producing more power than the member is using). The digital display on the meter cycles through
Delivered Power, Received Power, and Net Power (Delivered Power minus Received Power). The member
will be billed for the Net Power usage during that billing cycle.
For example, a member’s DG system produces 1000 kWh and the member uses 1800 kWh in a given
billing cycle. When Farmers EC reads the meter, the Net Power will show only 800 kWh in addition to the
meter’s previous reading. Therefore, the bill would be for only 800 kWh. If the DG system produced 1800
kWh, the Net Power would be 0 kWh in addition to the meter’s previous reading. Therefore, the bill would
consist only of a base charge (currently a minimum of $20, based on a $15.00 Customer charge and a
$5.00 rate minimum for residential accounts).
903 455 1715 | FarmersElectric.coop | 2000 Interstate 30 East, Greenville, TX 75402
YOU’RE IN POWER.
Distributed Generation & Your Co-op
Net Metering applies only to systems of 50 kW or smaller. For systems larger than 50 kW, Farmers EC
will install separate facilities to the generator and the power will be delivered directly to our distribution
system. The output is metered and Farmers EC pays the owner of the generator for the power at the
wholesale or avoided cost rate.
PLEASE NOTE: The larger the DG system, the more of an impact it will have on the co-op’s distribution
system. Consequently, Farmers has more requirements for interconnection of DG systems larger than
50kW. For more information, please contact Farmers EC Engineering Department..
Requirements for Installing a System (50 kW or Smaller)
Net Metered equipment is located on the member’s side of the meter; therefore, Farmers EC is not
directly involved in the installation. However, certain requirements must be met before Farmers EC
allows Net Metering to occur:
• Member must fill out and submit the original signed interconnection agreement.
• Inverter(s) must have a manufacturer’s tag clearly indicating that the system meets UL1741.
• A separate, lockable disconnect must be installed next to the meter base for the service.
• The DG system must be designed to shut down in the event of an outage in Farmers EC system,
to prevent energizing Farmers EC lines when crews would expect the line to be dead—a very
dangerous situation.
• The DG system must be the same voltage level as the member’s service (for residential services,
usually single-phase 120/240V 60 Hz).
• Member must provide a one-line diagram outlining the interconnection of the DG system.
• Farmers EC must inspect the final installation before it is brought online.
• A designated meter base must be installed on the output of the DG system. Farmers EC
will provide a meter upon inspection.
•The DG meter base needs to be wired a specific way. Contact Farmers EC Engineering
Department: 903 455 1715.
Ready to Get Started?
The first step is to contact a manufacturer of DG systems to determine what type of
system you want, how much it will cost, and the type of payback you can expect.
Once you find a system you are satisfied with, simply fill out, sign, and submit the
interconnection agreement to Farmers Electric Cooperative.
903 455 1715 | FarmersElectric.coop | 2000 Interstate 30 East, Greenville, TX 75402
YOU’RE IN POWER.