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In many states, homeowners and businesses can now sell solar
panel energy to utilities. Doing so requires an interconnection
agreement with your local utility.
Lowering Your Utility Bill
In a majority of states, homeowners using solar can take
advantage of a concept known as net metering. Net metering
essentially refers to the act of selling excess power produced
by your solar panels to the local utility. While you are at work
during the day, the energy produced by panels is fed directly
back to the utility [your meter runs backwards] and then you use
utility energy as you need it in the evening. The utility
company "pays" you at the same rate per watt as what it charges
you, thus creating a "net metering" situation. Practically
speaking, it is a tremendous way to slash or eliminate your
electrical bill.
If you intend to sell electricity to the utility company, you
can't just do it. Instead, you must get and sign an
interconnection agreement with it. While the name can change
from utility to utility, this agreement basically lays out the
ground rules on how the process will work. Let's take a closer
look.
Federal and state laws require utility companies to supply you
with standard interconnection agreements. The agreement
specifies the terms and conditions under which your system will
be connected to the utility grid. These can include your
obligation to get any required permits, maintain homeowner's
insurance and meet certain connection specifications.
Sometimes set apart as a separate document, the agreement will
also include the specifics related to the sale and purchase of
power by each of you. Instead of installing multiple meters to
asses the transfer of power, most utilities will simply let the
existing utility meter run forward when you are drawing energy
from the grid and backward when you are supplying energy to it.
If you supply more energy than you use in a month, must the
utility company send you a check? Unfortunately, net metering
laws do not require the utilities to do so. Instead, the company
will credit the monetary equivalent of the excess generation to
the next month's electrical bill until you eventually use it
during a cloudy or rainy month.
Interconnect agreements are fairly standardized agreements that
shouldn't cause you much concern. Just make sure you get one
before hooking up to the local utility.
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