Member-Owned Generation

Distributed Generation Projects

Interconnection with Shelby Electric’s grid is very complex.  Members considering a system should call the office and speak with a knowledgeable representative directly.  

Distributed Generation Programs:

                  Net Metering – projects rated at 10 kW AC or less

                  Qualifying Facility – projects greater than 10 kW or less than 100 kW

Members who install a renewable energy system on Shelby Electric’s lines MUST own the system themselves per cooperative bylaws.  Third party ownership of the system is not permitted (e.g. Purchase Power Agreements (PPA) and lease agreements tied to kWh production).  

Interconnection Agreements MUST be signed between the member and the Cooperative, and continued proof of insurance is required throughout the lifetime of the system itself. 

No extra monthly billing fees are charged to a member who has a distributed generation system. The member’s rate is determined by the service size itself.  [Note, if a member is participating in an incentive rate, such as a sub-metered rate or the interrupt rate, AND chooses to add distributed generation, the member must be moved back to the standard rate based on their service size.] 

A non-refundable application fee of $500 is required at the time of application to secure the project’s placement into the queue of projects.  This fee is imposed as an effort to recover costs incurred to Shelby Electric during the connection process.  ALL projects MUST be reviewed by our Engineering team before authorization to construct is granted. Additional deposits MAY be required depending on the system size and necessary engineering studies and/or Cooperative system upgrades.

Once your application is approved, construction of your project may commence. Once completed, the Cooperative must be notified to schedule an inspection. ALL projects MUST be inspected before authorization to energize is granted. THE HOME OWNER AND A REPRESENTATIVE OF THE CONTRACTOR MUST BE PRESENT for the inspection. This is in the best interest of all parties (utility, member, and contractor). If the project passes inspection, a net-meter will be installed. If the Cooperative must return to the location for inspection more than two times, a non-refundable trip fee of $100.00 must be paid in advance of the 3rd scheduled inspection.

Please call the office to discuss your project prior to application!  800-677-2612 or 217-774-3986


Net Metering

Systems less than 10 kW AC rated nameplate capacity qualify for Shelby Electric’s Net Metering Program.  

In this program, your main meter is replaced with a “Net Meter” which reads three things: Delivered kWh (what we send to you), Received kWh (what you send to us), and Net kWh (the difference of these two).  At the end of each billing period, we bill you for Net kWh.  

If the Net is negative at the end of our billing cycle, meaning you have produced more than you used during that time, we will credit those kilowatt-hours to you at the average market price for that billing period.  That dollar amount of “credit” is banked on your account. Banked credits will roll forward month to month throughout the annual period and may be used to offset energy-related charges.  Banked credits cannot offset the facility charge, state tax, or ancillary charges (such as security lights).  At the end of the annual period, any remaining credit will be lost.  The annual period ends and restarts with your April bill. 

Member Documents:

Member Checklist for Net Metering projects

Attachment A; Application for Distributed Generation Project

Attachment D; Agreement for Interconnection and Parallel Operation of Distributed Generation

Attachment E; Authorization to Energize


Qualifying Facility

Systems larger than 10 kW and smaller than 100 kW, fall into our Qualifying Facility (QF) Program. QF’s can be of any size, and are self-certified.  [For systems over 100 kW, please call the office at 1-800-677-2612 or 217-774-3986]

QF systems allow large accounts to utilize a greater amount of self-generated power as it’s needed. Unlike net metering projects which offset kWhs during the billing period, QFs utilize generated power in “real-time”.  

Prior to installation, member’s must choose one of two options for their QF system:

  1.   A Standard QF system will track all kilowatt hours generated over what the member is using at each five-minute interval.  All over-generated kilowatt hours are contracted through Shelby Electric’s power provider, Prairie Power Inc (PPI).  
    In addition to Shelby Electric’s meter (which will record how much electricity SEC sends to you), another meter is required.  This additional meter is paid for and owned by the member, and installed by PPI to record the amount of electricity received.  This metering is very advanced and must maintain contact with PPI’s communication systems.  
    In this scenario, the member will receive a standard monthly bill from Shelby Electric for all electricity delivered to the location.  The member will also receive a separate monthly statement/check from PPI for communication fees and settlement for electricity received from the location based on real-time market prices.
    Keep in mind, actual electricity prices settle every five minutes and fluctuate positive and negative.

  2.   A Waived QF system allows the member to opt-out of the additional metering. If the member over-generates under this agreement, the member agrees to waive all right to those kilowatt-hour sales. 

NOTE: A $1,500.00 Third Party Engineering Analysis fee is required at the time of application!

Member Documents:

Member Checklist for QF projects

Attachment A; Application for Distributed Generation Project

Attachment B; Owner Certification of Qualifying Facility under Public Utility Regulatory Policies Act (PURPA)

FERC Form 556

Attachment D; Agreement for Interconnection and Parallel Operation of Distributed Generation

Attachment E; Authorization to Energize


revised 3_9_2020