Thursday, February 29, 2024

Can You Sell Electricity Back To The Grid?


Electricity is a measurable resource from a technological standpoint. However, because it cannot be directly seen or touched by hand, it is difficult to imagine operations like purchasing and selling it. Renewable energy certificates, also referred to as RECs, are one way to fill that void.

RECs are government-issued certifications that guarantee the proprietorship of renewable energy. For just about every 1,000 kWh of electricity (kWh) returned to the grid, one Renewable energy certificate is granted. PURPA compels utilities to obtain a set percentage of their energy from renewables. RECs are effectively verifying that they’ve met this requirement.

How to Sell Electricity Back to the Grid?

One of the most effective methods to generate passive revenue for your family is to sell power. When it refers to selling the renewable power back to the local utility company, you have two alternatives.

If you’re willing to fill out a lot of paperwork, you can get compensated per unit generated as you would if you bought it from your provider via net metering. There’s also a simpler alternative, where you are paid less for a unit created, but it’s a lot less work. You can also check some Utility Bidder to find out more information on this one.

Net Metering

You would really like to establish a net metering scheme when you’ve invested in some substantial energy-generating equipment and plan to create a lot of surplus power.

This implies that for each and every kilowatt-hour of power produced that you don’t use, your energy provider will reimburse you a fair price.

It does imply you’ll require an OFGEM-approved Exporter Meter, which your provider may be able to assist you with. This choice also allows you to preserve your ROC obligations.

The Easy Solution

If your producing system is meant to complement (instead of replacing) your system’s energy consumption, you’re certainly better off starting with Good Energy and otherwise Ecotricity simpler solutions. The bargain is that you’ll pay less per unit of power generated, whether it’s utilized on-site or exported.

It makes no difference to them whether you consume the power personally or if it goes into the main grid. The good news is that you won’t have to pay for an export meter, but you will forfeit your opportunity to prove your ROCs, which they will pay in on your account.

Factors to Consider when Selling Electricity back to the Grid

Some of the essential elements that must be considered in order to generate profit from solar power sales are listed below.

Net metering regulations:

Net metering is a consensual agreement made between solar-generating companies or individuals as well as metropolitan energy utility centers. The utility centers will charge these persons for net power use under this contract.

If, on the other hand, energy generation is excessive, the corporation is compensated. Distinct systems have developed net metering rules and regulations.

Corporate rules:

The initial costs of installing Photovoltaic panels as well as solar arrays are substantial. The cost is mostly controlled by the volume and intensity of solar output.

Prior to actually making an investment, homeowners should consider their roof accessibility and area, the numerous paneling possibilities, yearly sun exposure, and ease of connection to the electric grid.

Based on all of these business elements, a complete strategy with a clear and precise profit prediction must be established.


Selling electricity back to the grid comes with certain rules and regulations to follow. If done rightly, there’s nothing to gain but a good profit.

Herbert Wise
Herbert Wise
Infuriatingly humble organizer. Entrepreneur. Zombie guru. Professional creator. Future teen idol.

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