n the past, most homes with solar electric systems were not connected to the local utility grid.
It made sense to install solar electric systems in areas without easy
assess to the power grid, where the option of extending a power line
from the grid might cost tens of thousands of dollars.
In recent
years, however, the number of solar-powered homes connected to the local
utility grid has increased dramatically. These “grid-connected”
buildings have solar electric panels or “modules” that provide some or even most of their power, while still
being connected to the local utility. Owners of grid-connected homes
can choose to supply a portion of their energy with solar energy, using
the utility for power during the night or on cloudy days. Because of the
up-front costs of installing a solar electric system, many of these
homeowners initially install systems that meet about one quarter to
one-half of their energy use.
Solar electric systems sometimes
produce more electricity than your home needs. This extra electricity is
either stored in batteries or fed into the utility grid. Homeowners can
be given credit by their local power companies for the electricity
produced at their homes through “net metering” programs.
Net metering
Simple scheme of connecting solar electric system to the grid |
Grid-connected
systems generally use a billing process called “net metering” or “net
billing”. In this process, any energy generated by the solar modules that your home does not use immediately is sent to the utility grid.
However,
when the solar electric system is producing less power than is needed,
you can draw additional power from the grid. If your system is connected
to the grid through a single electric meter, your meter can actually
run backwards as you contribute excess energy to the utility.
The
excess electricity is being credited to you at the same retail rate as
the electricity you use from the utility. Your utility may require the
use of two meters—one that meters your consumption of energy from the
grid and the other that meters your contribution to the grid. In this
case, your solar-generated excess energy could be credited at the retail
rate or possibly at a lower wholesale rate, depending on the utility.
In
addition, some utilities bill their customers according to a
“time-of-use” rate system. Under this system, customers are billed at a
higher rate during certain times of the day, such as during the sunniest
daytime hours of summer when air conditioners are working at their
peak. If this is the case with your utility, you may be able to “trade”
your excess energy to the utility at these same rates.
You can
therefore benefit from the fact that your solar electric modules produce
the most power during those sunny summer days. When you need power from
the utility during the off-peak periods, such as in the evening, the
rate is usually lower. If you choose to have a grid-connected solar
electric system, and your system produces enough energy in any given
month so that you do not have to draw from the grid, you may still
receive a small monthly bill. This is because many utilities charge
monthly fees for meter reading. Again, check with your local utility.
Connecting to the grid
One
of the most important steps in purchasing a grid-connected solar
electric system is choosing a provider with experience. A good provider
will also have a properly licensed electrical contractor, have enough
years of experience to have demonstrated an ability to work with
customers, and be able to compete effectively with other firms.
A
good provider should be familiar with your local utility’s regulations
on interconnection requirements. If your provider is not familiar with
these requirements, check with your local utility, state energy office,
or state or local Public Utility Commission for details.
Your
solar electric provider should supply you with everything you need to
run your system, including a specific type of inverter for
grid-connected systems, batteries (if you want backup power), and a
special electric meter. As mentioned already, some utilities require you
to have one electric meter that runs both forward and backward. Other
utilities require two separate meters: one for incoming power you
receive, and one for power you generate that goes back into the system.
These meters are sometimes paid for by the utility, but may be part of
your provider’s price for the system.
As part of the installation
of your solar electric system, you will need to sign an interconnection
agreement with the utility company. Your solar electric provider may be
able to handle the negotiations and paperwork with the utility, but this
contractual agreement is between you and your local utility. Be sure to
read the fine print in this agreement, which may differ considerably
from one utility to another. It could range from a short one-page
statement to a lengthy booklet. In either case, the fine print may
contain references to liability issues that you will want to fully
understand before signing the contract.
Also, be sure to speak
with your homeowner’s insurance provider, because the solar electric
system itself will need to be added to your policy. In many cases, you
may have to add a rider to your policy for the grid connected system.
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