Renewable energy sources that can be installed at home have made it possible for people to lower their electricity bill and actually get paid for producing electricity too. While the cost of installing a wind turbine or solar panel will be high when you consider purchase costs and the electrical contractors’ bill, there are now ways to make your investment into a profitable system. Solar panels will mean you are able to avoid the high costs of electricity and set yourself up for a much cheaper lifestyle, especially if you can sell your surplus. This article considers how you can go about selling your surplus electricity to the very electricity suppliers that once charged you.
Consider the government incentives
Installing a solar panel or wind turbine without first considering whether there are any government incentives available is a very foolish move to make. Government incentives are offered in many countries and states around the world to encourage people to install renewable energy systems on their homes. Government incentives can save you up to 75 per cent in some cases and this will make it far easier to make your solar panels into a profitable system.
The feed-in tariff is the rate you will negotiate with your utility provider. This means you will arrange a rate at which you can sell any surplus electricity to the company. You will need to call your electricity provider to negotiate the price of electricity sold to them, and a contract similar to your service contract will then be created.
A net metering service is another option, and this means you are provided a free electricity service in exchange for the power company being able to take any surplus energy from you for free. This exchange system is beneficial if you have installed a solar panel that only just covers the electricity usage of your home. A net metering arrangement will simply mean you have no bills and will be paid nothing for the electricity you provide to the grid.
Negotiate a price per kWh
In order to sell under the feed-in tariff arrangement you will need to negotiate a price per kWh of electricity. It is important to do this before installing a system, because some providers may only be willing to give you the wholesale price. In no case is a solar panel more cost effective than creating energy from fossil fuels, so under this arrangement you will be getting only cents for the hard work of your solar panels and only a small return from your investment. Other companies, however, will be willing to pay you market price for the electricity, and this can provide you with a far more profitable system.
Generating cash from renewable energy
Renewable energy is simply not as efficient as generating electricity by burning natural gas or using other fossil fuels. For this reason, investing in solar panels to make money is an unwise step to take. Installing solar panels to reduce the cost of your bills, however, is a good step to take because it will offer you large savings. If you have a surplus after this, selling it on can make a small profit, but this should never be your initial goal as it is finically unviable.