The average size of distributed photovoltaic systems is on the rise.  In fact, the average size of all PV systems installed in 2011 grew by 64%  over 2010. In addition to larger system sizes, penetration of solar on the grid is increasing in many states. In Hawaii, for example, 20 percent of the distribution circuits are already above 15 percent of peak load, a common benchmark for high penetration. These trends, coupled with the growing interest and declining costs in distributed generation (DG), are causing utilities across the nation to propose lengthy studies to determine the potential grid impact of increased DG capacity.

Last month, however, we heard an important announcement that could smooth the path of further DG development, enabling larger and greater numbers of DG systems to connect to the grid in a more expeditious manner. On January 17, the Federal Energy Regulatory Commission (FERC) issued a proposed rule that contains a number of important changes to its Small Generator Interconnection Procedures (SGIP). In the proposed rules, FERC notes that the proposed reforms are "intended to ensure that the time and cost to process small generator interconnect requests will be just and reasonable and not unduly discriminatory."  This is welcome news for the renewable energy community, especially considering that FERC's original intent was to re-evaluate the rules two years after they were first published and six years have now past since FERC has had an opportunity to consider possible modifications.