PECO Solar Interconnection and Net Metering Policy
PECO Energy Company, the investor-owned electric utility serving southeastern Pennsylvania including Philadelphia and its surrounding counties, operates interconnection and net metering programs that govern how solar installations connect to the distribution grid and how excess generation is credited. For property owners and solar developers in PECO's territory, understanding these policies determines the financial structure of a solar investment, the technical requirements for grid-tied systems, and the timeline from installation to utility approval. This page covers PECO's interconnection process, net metering credit mechanics, applicable regulatory authority, and the boundaries of what these programs cover.
Definition and scope
PECO's solar interconnection policy establishes the technical and administrative requirements for connecting a customer-owned generation system — most commonly a rooftop or ground-mounted photovoltaic system — to PECO's distribution network. Net metering is the billing mechanism that accompanies grid-tied solar, allowing customers to offset their utility bills by exporting surplus electricity to the grid.
Both programs operate under the jurisdiction of the Pennsylvania Public Utility Commission (PUC), which established net metering rules through Pennsylvania's Alternative Energy Portfolio Standards Act (AEPS Act, Act 213 of 2004). The PUC's interconnection rules, codified at 52 Pa. Code § 75, set minimum standards that PECO's tariff must meet. PECO's specific tariff schedules — including its Electric Service Tariff filed with the PUC — define the precise operational terms within that regulatory floor.
Scope and coverage: This page applies exclusively to customers within PECO's certificated service territory, which covers Philadelphia, Bucks, Chester, Delaware, and Montgomery counties, as well as portions of York County. It does not apply to customers served by PPL Electric Utilities, Duquesne Light, or Met-Ed. State-level rules that apply uniformly across Pennsylvania — such as AEPS Tier I requirements — are addressed in the regulatory context for Pennsylvania solar energy systems. Federal interconnection standards under FERC Order 2222 and IEEE 1547-2018 apply at the transmission level and are not within the scope of PECO's distribution-level process described here.
How it works
PECO's interconnection and net metering process follows a structured sequence governed by PUC rules and PECO's internal review procedures.
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Application submission. The customer or licensed solar contractor submits an interconnection application through PECO's online portal. Applications must include system specifications: inverter model and certification, PV array size (in kW-DC), and proposed point of interconnection.
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Screens and review level. PECO applies the Fast Track Screen defined in 52 Pa. Code § 75.33. Systems at or below 10 kW for residential, or up to 2 MW for small commercial, may qualify for simplified Fast Track review. Systems failing Fast Track screens proceed to Supplemental Review or the full Study Process.
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Technical approval. PECO's engineering team evaluates load flow, voltage, and protection coordination. Anti-islanding compliance per IEEE 1547-2018 is mandatory for all grid-tied inverters.
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Interconnection agreement execution. Once approved, the customer executes a Level 1 or Level 2 Interconnection Agreement, depending on system size and review outcome.
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Meter configuration. PECO installs or reprograms a bi-directional meter capable of recording both import and export. No separate export meter is required for systems under the net metering threshold.
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Permission to Operate (PTO). PECO issues PTO only after the local Authority Having Jurisdiction (AHJ) has completed electrical inspection and the installer has provided documentation. The system cannot be energized and export to the grid before PTO issuance.
Under net metering, exported kilowatt-hours offset the customer's consumption on a 1-to-1 basis at the full retail rate within each billing period (52 Pa. Code § 75.13). Net excess generation (NEG) — surplus kWh remaining at the end of a billing period — rolls forward as a kWh credit, not a cash credit, for up to 12 months. At the annual true-up, any remaining NEG credit is compensated at PECO's avoided-cost rate, which is substantially lower than the retail rate.
For a broader understanding of how grid-tied systems function before engaging with utility-specific processes, the conceptual overview of Pennsylvania solar energy systems provides foundational context.
Common scenarios
Residential rooftop system under 10 kW: The most common configuration in PECO's territory. These systems qualify for Level 1 interconnection under Fast Track. PECO's tariff caps residential net metering systems at 110% of the customer's average 12-month load, meaning a home consuming 8,000 kWh per year may not interconnect a system sized to produce more than approximately 8,800 kWh annually.
Small commercial system (10 kW to 500 kW): Subject to Level 2 interconnection. A detailed engineering study is typically required, and PECO may impose requirements for transfer trip relaying or enhanced protection equipment at the point of interconnection. Costs for distribution upgrades, if required, are generally borne by the applicant.
Battery storage paired with solar: Adding battery storage to a PECO-interconnected system requires a separate or amended interconnection application. The inverter must meet IEEE 1547-2018 requirements for storage, and the system must include approved anti-islanding logic. This is distinct from off-grid storage; see solar battery storage in Pennsylvania for a full comparison of grid-tied versus islanded battery configurations.
Community solar: PECO's territory includes community solar options under Pennsylvania's developing virtual net metering framework. Subscribers receive bill credits rather than interconnecting a physical system. This model is treated separately from direct interconnection and is detailed at community solar programs in Pennsylvania.
Decision boundaries
Level 1 vs. Level 2 interconnection: Level 1 (Fast Track) applies to inverter-based systems ≤10 kW for residential accounts. Level 2 applies to systems from 10 kW up to 2 MW. Systems above 2 MW require the full Study Process and are governed by different PECO tariff schedules outside standard distributed generation.
Net metering eligibility: Eligibility requires that the system be located on the customer's premises, that the customer hold an active PECO account at that service address, and that the system be intended primarily for on-site consumption offset rather than wholesale export. Systems designed primarily for export — selling power as a generation resource rather than offsetting load — fall under different FERC and PUC wholesale market rules and are outside net metering scope.
System size cap: Pennsylvania law, as referenced in the AEPS Act, allows net metering for systems up to 3 MW for commercial and industrial accounts, and up to 5 MW for agricultural operations. PECO's tariff may impose more restrictive caps at the distribution circuit level based on hosting capacity analysis.
Permitting intersection: Interconnection approval and local building/electrical permits are parallel processes. PECO's PTO cannot be issued before the AHJ inspection is complete. Conversely, a passed electrical inspection does not substitute for PECO's interconnection technical approval. Both are required before energization. Permitting concepts specific to Pennsylvania solar installations are covered at permitting and inspection concepts for Pennsylvania solar energy systems.
What PECO policy does not cover: PECO interconnection rules do not govern systems located in territories served by electric cooperatives or municipal utilities operating within or adjacent to PECO's geography. Customers considering solar within Pennsylvania's full utility territory map should verify service territory before relying on PECO-specific procedures. Incentive programs, tax credits, and SREC market participation are financial overlays to interconnection — they are not administered by PECO and are addressed separately at Pennsylvania incentives and tax credits and Pennsylvania SREC market.
The full landscape of solar options available across the state, including how PECO's policies fit within the broader regulatory and market structure, is accessible from the Pennsylvania Solar Authority index.
References
- Pennsylvania Public Utility Commission (PUC)
- 52 Pa. Code § 75 — Net Metering and Interconnection
- Pennsylvania Alternative Energy Portfolio Standards Act, Act 213 of 2004
- [IEEE 1547-2018 — Standard for Interconnection and Interoperability of Distributed Energy Resources](https://standards.