What is a Small Agriculture Generator?
A Small Agriculture Generator (SAG) is a renewable energy generator located on a member’s property that qualifies under VA Code provision § 56-594.2. Eligible members interested in renewable generation can apply for interconnection and enter into a power purchase agreement (PPA) with REC, to sell all of the electricity generated from the SAG facility.
It’s important to note: All electricity produced by the SAG will go directly onto the electric grid and not offset any load at the agricultural facility or business directly.
The electricity produced by the solar farm will be sold to REC at an agreed-upon price and the member will still be responsible for the electric bills associated with their metered accounts.
For more information please reach out to RECSGIRequest@myrec.coop
Who is Eligible?
Small agricultural generators operate pursuant to Va. Code 56-594.2.
Eligible agricultural businesses include:
- Breweries
- Wineries
- Distilleries
Additional Eligibility Requirements: Attested under oath as to the amount of land being used for renewable generation, which will be retained by the Cooperative. More specific information available in the SAG tariff.
Small Agriculture Generator Characteristics
- A capacity of no more than 1.5 MW and does not exceed 150 percent of the customers expected annual energy consumption
- Uses renewable energy as its fuel source
- Located on the member’s property and is connected to the utility with a separate meter
- Operated in parallel with the utility’s distribution system
For example, at a winery, there might be a meter on a related home, one on the tasting room, and one on your production building. A member can combine the entire usage of those facilities and design a solar project to offset that combined usage up to 150%.
Small Agriculture Generator Resources
Special Terms and Provisions:
- Sizing of the system shall be up to 150% of the member’s expected annual energy consumption based on the previous 12 months of billing history
- Members may use no more than 25% of their contiguous land for purposes of the small agricultural generator
- Members (have a one-time option to sell) can sell all the renewable energy certificates (RECs) generated by the SAG to the Cooperative
- Costs of metering is paid by the member
SAG Terms and Conditions:
Minimum one year contract is required.
REC’s Role:
REC will provide information about the process, capacity limits, sizing rules, and regulations. Review and approve applications, including interconnection applications. And install said interconnection metering equipment as needed.
How to Apply?
Applying to have a Small Agriculture Generator for your business or agricultural farm is the same as our Small Generator Interconnection Process here.
Monthly Rate (Price):
Electricity produced by the SAG will be purchased at the same rate that the Cooperative would otherwise purchase the electricity from the wholesale provider. This is considered the avoided wholesale cost of energy. REC shall make payment to the member within 30 days after the meter is read, pursuant to the terms of the power purchase agreement (PPA)
What qualifications are needed?
A Level 1 or Level 2 Interconnection is required for this project. Through REC, the member can set up the process and would incur any applicable fees.
Provide a notarized letter or affidavit needed to confirm only 25% of a member’s land is being used for solar. More information will be provided during the application process.
What are Renewable Energy Certificates (RECs)?
A market-based instrument that represents the property rights to the environmental, social, and other non-power attributes of renewable electricity generation. RECs are issued when one megawatt-hour (MWh) of electricity is generated and delivered to the electricity grid from a renewable energy resource.
Are there any federal or state credit incentives?
State and federal credits in Virginia