Using Interconnection Agreements To Sell Solar Energy

In many states, homeowners and businesses can now sell solar panel energy to utilities. This can be made possible through an interconnection agreement, which we shall discuss today.

Net metering is something that many homeowners across the United States use to take advantage of their solar power. This can simply be defined as the capability to sell your excess solar power to local utility companies. Because solar meters run backwards, it is possible to take advantage of this in the daytime while at work - your solar panels would feed the energy back to the utility, while later on in the evening you can use utility energy. The utility company "pays" you at the same rate per watt as what it charges you, thus creating a "net metering" situation. This can serve you well if your state has net metering, as you could wave bye-bye to costly electric bills.

It's not as simple as asking your utility to buy electricity from you if you intend to sell it. As stated earlier, you would need to sign an interconnection agreement to sell solar. 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.

These agreements, first and foremost, are a requirement of most federal and state laws. The agreement specifies the terms and conditions under which your system will be connected to the utility grid. You would be advised of the necessary permits needed, as well as information on connection details and home insurance.

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. Your existing utility meter can be set up in such a way that it moves forward when using utility energy from the grid, and backward when you are supplying energy to the utility - there would be no need to add more meters.

One common question is whether you would receive a check if you supply more energy than you use. The answer would be no, as current net metering laws still do not require this of utility companies. What you can expect to receive would be the monetary equivalent of such excess energy reflecting as a credit on your next electric bill - it may not be a check, but it's better than nothing and a great way to save.

Nonetheless, these are easy agreements to read, and shouldn't cause much stress or worry. But before selling to the utilities, make sure you have one and fill it out.


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