The question of how to sell electricity often pops up in regions with power supply problems and high utility rates. The answer is not so simple because it depends largely on the costs and realities of setting up a renewable energy production system on location. State laws and the utility company's policy regarding power purchase from consumers have to be considered.
The net meter laws in the state are essential elements required to make this project feasible. What happens is that the law compels the utility to buy power at the same rate the customer is paying them. If not for these laws, the utility would pay only the wholesale power purchase rate. This would make the whole exercise rather pointless.
As a practical matter, it needs a net meter. This meter can add units when power is being taken from the grid or remove units from the total when power is fed into the grid. In this way, the consumer only gets a net bill where the power fed into the grid has been subtracted from the overall amount consumed.
On a related note, if the consumer sends in more power than consumed, some utilities do not pay in cash. They may simply carry forward the extra balance on to the subsequent billing cycle. There are no specific laws governing this, and it is mostly done at the discretion of the utility company.
Wind turbines and solar arrays are the two most popular choices in terms of clean or renewable energy production systems. The choice is mostly dependent on the location. Farmsteads and rural areas will find wind turbines more beneficial. Wind turbines are rarely feasible in urban settings, so the best choice will be a solar array on the rooftop.
Off-grid systems save power in batteries. The battery output will be DC and has to be converted into AC with an inverter before it can be used or sold. On-grid systems that send the generated power into the grid are actually selling two different products. One is the electricity and the other is the REC (renewable energy credit).
As per EPA regulations, one REC is created for every 1000 kilowatt-hours. The utility pays the seller for the metered amount of power and for each REC. This REC can also be sold separately to another buyer who wants to balance energy production from non-renewable sources such as fossil fuels.
A lot of money is being spent on research and innovation. For instance, a plugged-in and charged electric vehicle can now be used as a source of stored power by a smart grid. Many countries offer FIT (feed-in tariff) schemes where consumers are paid to use the renewable electricity they themselves generated.
Consumers covered by an FIT scheme additionally make money by selling excess power and by not having to pay the utility bills. Considering all this, it's fair to say that the real problem is not how to sell electricity or what to do with it after it is produced. The main hurdle is setting up a system capable of producing enough renewable energy for both personal use and sale.
The net meter laws in the state are essential elements required to make this project feasible. What happens is that the law compels the utility to buy power at the same rate the customer is paying them. If not for these laws, the utility would pay only the wholesale power purchase rate. This would make the whole exercise rather pointless.
As a practical matter, it needs a net meter. This meter can add units when power is being taken from the grid or remove units from the total when power is fed into the grid. In this way, the consumer only gets a net bill where the power fed into the grid has been subtracted from the overall amount consumed.
On a related note, if the consumer sends in more power than consumed, some utilities do not pay in cash. They may simply carry forward the extra balance on to the subsequent billing cycle. There are no specific laws governing this, and it is mostly done at the discretion of the utility company.
Wind turbines and solar arrays are the two most popular choices in terms of clean or renewable energy production systems. The choice is mostly dependent on the location. Farmsteads and rural areas will find wind turbines more beneficial. Wind turbines are rarely feasible in urban settings, so the best choice will be a solar array on the rooftop.
Off-grid systems save power in batteries. The battery output will be DC and has to be converted into AC with an inverter before it can be used or sold. On-grid systems that send the generated power into the grid are actually selling two different products. One is the electricity and the other is the REC (renewable energy credit).
As per EPA regulations, one REC is created for every 1000 kilowatt-hours. The utility pays the seller for the metered amount of power and for each REC. This REC can also be sold separately to another buyer who wants to balance energy production from non-renewable sources such as fossil fuels.
A lot of money is being spent on research and innovation. For instance, a plugged-in and charged electric vehicle can now be used as a source of stored power by a smart grid. Many countries offer FIT (feed-in tariff) schemes where consumers are paid to use the renewable electricity they themselves generated.
Consumers covered by an FIT scheme additionally make money by selling excess power and by not having to pay the utility bills. Considering all this, it's fair to say that the real problem is not how to sell electricity or what to do with it after it is produced. The main hurdle is setting up a system capable of producing enough renewable energy for both personal use and sale.
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