Memphis Light Gas & Water just started charging a $500 "interconnection study fee" for any solar installation over 10kW. This is new as of January 2023 and they didn't announce it anywhere - customers are finding out when they submit applications. Commercial clients are getting hit with additional "system impact studies" that cost $2,500-5,000 depending on system size. These fees are killing project economics, especially for smaller commercial installs. Anyone else seeing similar cash grabs from their local utility?
MLGW solar interconnection fees - anyone else seeing this?
Southern California Edison has been doing this for years. They call it "Rule 21 interconnection processing" and charge anywhere from $300 for small residential to $50,000+ for large commercial systems. The worst part is these fees are non-refundable even if the interconnection gets denied. I've seen clients pay $15,000 in studies only to be told their system would require $200,000 in grid upgrades. It's a deliberate strategy to discourage distributed generation.
AEP here in West Virginia charges $1,000 minimum for any interconnection study, even for small residential systems. They claim it covers engineering review and grid impact analysis but it's really just a barrier to entry. The studies take 6-12 months to complete and often come back requiring expensive upgrades that make projects uneconomical. Meanwhile, AEP is building their own utility-scale solar and getting streamlined approvals. Classic conflict of interest.
Dominion Energy South Carolina tried to implement similar fees but the Public Service Commission shot them down. They ruled that interconnection studies should only be required for systems that actually impact grid stability, not as a blanket revenue generator. The key is challenging these fees at the regulatory level - most utilities are counting on customers just paying without pushback. File formal complaints and demand cost justification for every fee.
Duke Energy Ohio is rolling out a new fee structure that charges based on system size - $100 per kW for systems over 25kW. So a 100kW commercial system would pay $10,000 just for the privilege of connecting to their grid. They're also requiring customers to pay for any transformer or line upgrades within a quarter mile of the installation site. These costs can easily exceed the value of the solar system itself. It's economic warfare against distributed generation.
Xcel Energy Colorado has a tiered fee structure that's actually reasonable compared to what you all are describing. $100 for residential under 10kW, $500 for 10-100kW, $1,500 for 100kW-1MW. They also provide detailed cost breakdowns and allow customers to dispute charges if they think the study scope is excessive. The key is regulatory oversight - states with strong utility commissions keep these fees in check, while states with captured regulators let utilities run wild.