J Ferg Knowledge Base
How to Sell Energy Back to the Utility Company with Solar
Solar energy is a renewable energy source well-known for how it benefits the environment, but did you know that solar energy can also provide financial benefits? If done correctly, you can sell excess solar energy back to electricity companies through a process called “solar buyback” or “net metering.” Here is how you can do it in three simple steps.
Check how much solar energy you are using.First and foremost, the energy that solar panels generate should be used to power their respective homes, businesses, etc. Any excess energy that remains can be used for net metering or selling surplus energy back to electrical companies. The amount of time it takes to generate enough extra solar power to sell back to electricity companies will vary. It largely depends on personal energy usage habits, which can be monitored through monthly electricity bills or by checking with your solar power experts
Make sure you have the proper materials.Once you assess your monthly energy usage patterns and have enough solar energy stocked up, homeowners must ensure they have the proper materials to complete the sale. These materials include:
- A smart meter
- An interconnection agreement with your utility company
- An electricity company that is willing to set up a plan and buy the extra energy from you. (This is very important because not every electricity company is willing to do so.)
Research, research, researchOnce you have prepared your materials and assessed your energy usage, it is essential to research how different plans operate. Most companies will buy energy based on their pre-established rate per kilowatt hour or kWh, the unit used to measure solar energy. Essentially, the companies will buy the excess power from their customers at the same price a customer would pay to use the same amount. Some other companies will pay for the extra energy based on their avoided costs, which vary from company to company.
Net meter with the pros at J FergInvesting in solar energy entails many benefits, including reducing carbon footprints, tax incentives, and a significant return on your investments. If you are interested in taking advantage of what solar energy offers, contact the experts at J Ferg with all of your net metering questions and see if you qualify for free solar panel payments for your first twelve months!
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