If you already have a solar system installed at your home then you should definitely consider selling solar power to generate income. Yes, you read it right. Although you may have installed the solar system for personal or household use, you can use the excess energy produced by your solar system to earn money (credit) by selling it to the utility company.
The world is rapidly becoming more and more conscious about the environment and in order to reduce pollution of any kind, governments and organizations across the globe are undertaking different initiatives. One of the most popular and effective ways to contribute to environmental conservation is by using solar panels and selling solar power to generate income.
In this article, we will discuss the different aspects of selling solar power to generate income and what kind of benefits you will be receiving from the same.
What is net metering and how it helps to sell solar energy?
If you are thinking about selling solar power to generate income then you will need to install a net meter in order to evaluate the amount of electricity received and sent to the grid. The amount of solar energy created by your solar system will vary all year round because of the weather conditions of your region and this drastic difference throughout the year can influence your utility bills.
After installing solar panels, your solar system will generate more electricity than you usually require (during summer months) and the excess energy will go back to the grid and the amount of energy that is getting transferred to the grid will be measured in the net metering system.
On the contrary, during monsoon and winter when your solar panels will receive limited sunlight, the amount of electricity generated will be quite less and during this time you will receive energy directly from the grid. If the amount of energy you are transferring and receiving remains the same then you probably won’t have to pay any extra charges to the utility company. This entire process is known as net metering.
Receive earnings through the usage of solar panels
By now we have already established the idea that it is possible to earn money using the solar panels installed at your home. The concept behind this is that when you harness solar energy with the help of solar panels, the excess energy can be sent to the nearby grid and the utility company that is in possession of the grid will give you credit which can be utilized to balance out your electricity usage from the grid.
In this manner, you won’t have to worry about paying your monthly electricity bill for a long time because the excess electricity you are producing will help others. Although installing a solar system takes a significant amount of savings, you can expect long-term profits from the same. Let us have a look at how you will be influencing the economy by selling solar power to generate income.
Minimize your utility bills
A hefty chunk of your monthly expenses is used to pay the electricity or utility bills. However, by selling solar power to generate income, you can use the money you spend on utility bills to improve other aspects of your lifestyle or maybe use it for investment purposes. With the solar system installed at your house, you will be essentially receiving free electricity enabling you to save lots of money.
Step away from paying the increasing energy costs
With time, the cost of electricity is growing at an alarming rate. If you install a solar power system at your house you won’t have to worry about spending on increasing monthly electricity bills each and every year. Moreover, installing a solar system is a perfect long-term investment with the least amount of risk involved.
Least amount of maintenance involved
Unlike any other heavyweight equipment, installing solar panels involves very little maintenance which can be done every six months to one year depending on the rate of pollution in your area. Although we are using the term ‘maintenance’, all you have to do is clean the surface of the solar panel so that it can work with the best efficiency. In the case of the battery, you may have to change it once every ten years.
Receive greater ROI
The return on investment or ROI you will receive from the investment is better than you can imagine. Solar panels can last for at least 25 years and some of them have the capacity to last more than 30 years which means you will continue the process of selling solar power to generate income for a long time.
Increase the value of your property
Another excellent advantage of installing solar panels is that they can increase the overall value of the residential or commercial property. The essential feature of reducing utility costs sets your property apart from other properties in your locality. Not to mention, the buyer of the property will also be able to opt for selling solar power to generate income thanks to the system you have put in place.
Things to be aware of while selling back to the grid
The selling of solar power to generate income is generally known as a buy-back tariff and it can definitely be a source of extra income. However, before opting for this kind of arrangement you need to be aware of some important things mentioned below:
- For selling the extra solar energy you may have to pay an extra service depending on the utility company.
- The buy-back rates are generally less than the normal retail price you pay to the utility company as a consumer. The terms and conditions offered by the utility company will also be different. Therefore, you should enquire about the rules and regulations before signing up for selling solar power to generate income.
- When you are selling solar power to generate income, your solar system will be connected to the grid and the local grid will work as a backup energy source in case of poor weather conditions.
- Another important condition you need to meet before selling solar power to generate income is to have a system that will shut off your solar operation during a blackout. This will restrict your solar system from sending electricity to the grid during the power outage which can endanger the lives of the repair workers.
Final words
If you already are in possession of a solar system at your residence then selling solar power to generate income would be a fantastic opportunity to save a significant amount of money and utilize it in other aspects of your life. More importantly, you won’t have to worry about the increasing prices of electricity because your system is self-sufficient. Overall, installing solar panels at your residence creates a win-win situation for you.
Frequently asked question
Is it possible to sell solar energy?
Yes, it is possible to sell the extra solar energy you are producing in your household using solar panels. To sell the extra electricity you need to have an on-grid solar system that will connect your home’s electricity system to a nearby grid using wire. The extra electricity you produce will be directly transferred to the grid and you will receive credit for the same from the utility company.
Can solar power make you money?
Although you will not be able to directly make money through solar power, you will be able to save a lot of money by reducing your electricity consumption from the utility grid. You will receive credits from the utility company and your electricity consumption from the grid will balance out your overall electricity usage.
How much profit can you make with solar panels?
The profit you can make through solar panels depends on various factors. Generally, you will be able to save at least $21,250 to $42,500 every year. This rate can also fluctuate depending on the variables involved.
Is solar a good investment?
Yes, investing in solar panels is a good investment choice because you will be able to save a hefty sum on your utility bills for a long period of time. Not only does it increase the overall valuation of your home but you will also be able to contribute to environmental conservation. Moreover, the system will last at least 25 to 30 with proper maintenance, therefore creating a win-win situation for you in every aspect.
Can solar panels work with A/C?
Yes, you can easily run an A/C at your home with the right solar power setup. More importantly, running an air conditioner with solar power is an excellent way to save your money as well as bring the least amount of harm to the environment. Be it an off-grid or on-grid solar system, running an A/C with the help of powerful solar panels and a converter will be a breezy affair.
In this article, we have explained the process of selling solar power to generate extra income, how it is done using the net metering system, what potential benefits you will receive by opting for this kind of arrangement and what are the important things you should be aware of while selling your extra electricity generated through the solar panels.
Meet the Authors
Dax Linwood is a knowledgeable and experienced writer in the field of renewable energy, with a core expertise in solar energy. With a passion for sustainability and a commitment to advancing the adoption of clean energy, Dax's writing is both informative and engaging. He has worked on numerous solar energy projects, including solar panel installation and maintenance, and has a deep understanding of the technology and its benefits. Dax's expertise and dedication to the renewable energy industry make him a valuable resource for those looking to learn more about solar energy and its impact on the environment.