The Benefits (And Drawbacks) of A Solar Grid Tie System
The solar grid tie system is all the rave these days. Find out the benefits (and drawbacks) to net metering systems and how to get it to work for you.
What Is A Solar Grid Tie System?
A grid tie solar system (also known as a net metering system) is a method to send the electricity you generate with your residential solar power system back to your utility company's power grid.
In effect, you're using the grid tie solar system to produce energy for your utility company, and they credit you with it against your bill.
- This is mandated in some areas by a procedure called net electric metering.
The Benefit Of Having Solar Grid Tie System
There two main benefits of having a grid tie solar system .
- There is a financial benefit of selling excess electricity back to the electric company.
- There is also the benefit of having access to a better grade grid tie solar inverter.
- Oftentimes, you will end up with a better grade of an inverter than you'd otherwise get.
- The utility companies mandate the inverter that's used to hook up to their electrical infrastructure, and will usually mandate (or out-right provide in some areas) a specific make and model.
The Drawback Of A Solar Grid Tie System
The major drawback is that unless your local public utility commission has ruled otherwise, you'll be selling electricity back to the utility at the price it specifies, which will usually be the inter-state or inter-regional wholesale rate.
- This is usually 1/4 to 1/5 the cost you pay for electricity from them - so every 4 kilowatt hours you generate and provide to them saves you, on average, 12 cents.
You are ALWAYS better off using the power yourself in your own home; this reduces your electric bill directly at the same rate you buy kilowatt hours, not at the rate the utility company pays for them.
Net-Metering And Wholesale Energy Re-Purchasing May Not Be Available In Rural Areas
Net metering and wholesale energy re-purchasing for solar grid tie systems tends to be a more urban phenomena.
- They are a lot less common out in rural parts of the country.
A Solar Grid Tie System - The Bottom-Line
A grid tie solar system is an incentive system to help you with your initial investment.
So, it's worth talking to your local utility company to see if they have retail or wholesale net metering before making this decision.
- Some municipal utility companies are required to buy solar energy and excess power from consumers at the residential rate (residential net metering), most are not.
Here's to finding a way to bring more solar power into your family!
P.S. Here's a few more tips to help your solar power projects go smoothly...
