Power Selling
Power selling is an attractive feature for homeowners who have invested in residential solar panel systems. When a home's solar panels generate more electricity than the household consumes, the excess energy can be fed back into the utility grid. This process, known as net metering, allows homeowners to receive credit or compensation for the surplus electricity they contribute to the grid.
Key aspects of power selling include:
- Net metering: Net metering is the mechanism that enables power selling. It tracks the flow of electricity between a home's solar panel system and the utility grid. When the solar panels generate excess electricity, it is sent to the grid, and the homeowner's meter runs backward, crediting their account.
- Compensation: The compensation for power selling varies depending on the utility company and local regulations. Some utilities offer full retail credit, meaning homeowners receive the same rate for the electricity they sell as they pay for the electricity they consume. Others may offer a lower rate or use a time-of-use pricing structure.
- Reducing energy costs: Power selling can significantly reduce a homeowner's energy costs. By generating their own electricity and selling the excess, homeowners can offset their energy consumption and potentially earn money or credits on their utility bills.
- Environmental benefits: Participating in power selling supports the growth of renewable energy and reduces reliance on fossil fuels. By contributing clean, solar-generated electricity to the grid, homeowners help decrease carbon emissions and promote a more sustainable energy system.
When considering the installation of residential solar panels, understanding power selling and net metering policies in your area is crucial. The ability to sell excess electricity can enhance the financial benefits and return on investment of a solar panel system, making it a more attractive option for environmentally conscious homeowners.
