The Hidden Costs of Solar: Unpacking the Impact of Local Solar Permitting

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Connecting your solar power system to the electrical grid isn’t easy. It needs detailed construction and electrical work. Installing solar panels requires permits and approvals from your utility company and the local government.


This is a tedious and costly process, but once it’s done, you can get your investment back in only a few months. Approvals and permits mean that your solar panels meet all the required electrical and building codes in the area. In this article, we’ll explore local solar permitting and its impacts.

Local Solar Permitting

You need approval from two entities to get local solar permitting and approval for the interconnection process. They are:


Electric Utility Company:

They review and approve your application for interconnection to the distribution grid.


Local Building Authority (AHJ):
This reviews and approves all electrical, solar PV, and building permits.


Both have a solar permit application process in which you have to submit detailed documents about the following:


  • Roof specifications.
  • Location plan.
  • Wiring schematics.
  • Site plan.
  • System components.

Solar panels also require permits. This ensures that your home’s solar array meets your area's required structural and electrical requirements. If you’re applying without help from any solar company, you’ll have to submit the applications for permits and interconnection. 


However, if you have a solar company, it will do all the work fo you. The permit application requirements depend on your location but generally contain information about your system's structural and electrical designs certified by a professional engineer.


After getting all the approvals and permits, the contractor can install your solar panel system.

The local permitting authorities will have a final inspection of where the installation occurred. After passing this inspection, your solar company will apply for “Permission To Operate” or PTO from your utility company. If approved, you can start generating electricity from your solar panel system.


Solar permitting can vary from city to city and with different utility companies. There can be multiple overlapping authorities tasked with approving single projects. This makes it more difficult for you to navigate permitting applications across other localities. Due to these difficulties, permitting has been made easy by:


  • Decreasing municipality-specific permit requirements.
  • Limiting the permit processing time for officials.
  • Making permitting application information publicly available.
  • Allowing online submissions for solar permit applications.

Time To Get A Solar Permit

Getting a solar permit might take you 2-6 weeks. This is because of reviewing the engineered design, inspecting the solar energy system after installation, and checking that the system meets all the relevant building codes for safe activation. This is hectic, but you can hire solar energy companies to do this for you. It might not decrease the time it takes to get the permit, but this can ensure a smooth process.

Solar Permit Filing

Before installing any solar system, you need to get a permit, but before getting a permit, you need to plan your project. You should include factors such as:


  • Goals of getting solar.
  • Home energy consumption.
  • Local climate.

All of this is needed by the permit reviewing authorities to see if this information is correct and if the technology can be installed or not. After completing the design, your solar company will complete the rest of the process by submitting the needed documents and application forms to begin the permit filing process.


Interconnection:

You can apply for interconnection once you have the engineered plans for all the electric utility applications and forms. You can connect your solar energy system to the electricity grid with approval.


After application, it will be reviewed by the utility company to ensure that the design meets all the safety requirements. The electric utility company will also confirm the specs of your plan and grid codes for applicable equipment requirements. The focus will be on offset thresholds for solar net metering and system size.


Other design specifications they look for include the following:


  • Capacity rating for the proposed photovoltaic panels and power inverter.
  • Number of inverters and solar panels used.
  • The proposed photovoltaic array (obstacles and layout of the roof).
  • The location of your utility meter.

Application Forms For AHJ:

Authority Having Jurisdictions or AHJs can be any office, person, or organisation that monitors solar panel installations to confirm everything is up to code and follows all regulations. In most cases, they will be your local building department. There can be more than one AHJ, depending on your location.


Usually, the application is 10-15 pages long and will include the following:


  • Certifications for the mounting hardware and panels.
  • Placard and labels placement map for PV systems.
  • Site map.
  • Fire safety rating.
  • Solar panel wiring diagrams.

Gathering all the materials should be left to a solar panel installer or a solar provider since they know better.


Building Permits:

Permits vary by location; there might be a building permit, electrical, or solar permit for solar panel installation. Local AHJs review all this information and ensure that the project design complies with safety and local building code requirements.


Securing Approvals:

The AHJs and your utility company will review your applications once you submit them. If there is any problem, the application will be rejected, along with feedback detailing what is wrong. If everything is correct, the permits will be granted, and the interconnection application will be approved. Next comes installation.


Scheduling Inspection:

You’ll have to schedule a final inspection before switching on your solar power system. A solar inspector will check if your solar energy system was installed according to your area's applicable electrical, fire, and building codes and product specs. This applies to all jurisdictions.


Permission to Operate (PTO):

If the building inspector approves your system, you can apply for “Permission to Operate” (PTO) with your utility company. After applying, a utility technician will visit your home to check if your solar energy system meets metering and electrical safety guidelines. They might also install a new bi-directional energy meter that tracks energy consumption and production.

Local Solar Permitting Installation Costs

You should know about the soft costs of the rooftop solar installation process. These are non-hardware costs like permitting, financing, and marketing. These costs tend to increase quickly, and this is because there are a lot of AHJs to keep track of, each having its processes, timelines, and requirements. While you ensure the longevity and safety of your solar system, you should also consider its costs.

Engineering And Research Costs

Your jurisdiction plays a vital role since the installer applies for zoning approval before installation, researches the code, and customises installation drawings. This stage is costly and time-consuming because the permit needs to be reviewed by a professional engineer before approval.

In-Person Submission Requirements

A few cities may need you to submit the permit application in person. If it takes a lot of travelling to get to the local permitting offices, enlist solar permit services, or drop the permit packages in person, you must spend a lot more time, fuel, and resources. All this adds to the cost of your solar installation.

Permit And Application Fees

The fees will vary with your expenses and location since different jurisdictions will charge varying permit fees. Another essential thing to note is that the solar installer has no say in this matter. They might be unable to predict the cost during the design and planning stage.

Building Requirements

There might be other conditions you’ll have to meet other than national code or state requirements:


  • Excessive roof penetrations.
  • Extra disconnects to turn off the system.
  • Labelling.
  • Huge fire barriers.

Streamlining The Solar Permitting Process

With the increased demand for solar systems, local permitting authorities strive to make the installation process more manageable. It takes extra time to do what is essential correctly but adding new rules to the process only slows down the permitting process and increases costs.


This has allowed many solar companies to intervene. They cannot make any changes directly but can streamline the steps for a smooth solar permitting process. This is why the United States Department of Energy and the National Renewable Energy Laboratory launched the Solar Automated Permit Processing (SolarAPP+). 


This free web-based platform makes it easy for solar installers and local governments to increase the speed of the solar installation and review process in a way that doesn’t compromise safety.

Solar Automated Permit Processing

SolarAPP+ offers a fast and safe standardised permitting process for residential installations. With the increase in switching from utility to solar energy, permitting officials will be burdened by the high number of applications that cause delays. This will lead to a policy change, making the process much faster and more efficient.

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