Quick Answer
Excess solar production is typically fed back into the grid, earning the property owner a credit on their electricity bill, known as a net metering credit. This credit can be used to offset future electricity bills or sold back to the utility company. The exact process varies depending on local regulations.
Excess Energy Feeding into the Grid
When solar production exceeds demand, the excess energy is fed back into the grid through the solar grid tie system’s inverter. This inverter is a critical component that converts the DC power generated by the solar panels into AC power, which matches the voltage and frequency of the grid. The excess energy is then sold back to the utility company, earning the property owner a credit on their electricity bill.
Net Metering Credits
Net metering credits are the monetary value of the excess energy sold back to the grid. This credit is typically calculated based on the property owner’s monthly electricity usage and the rate at which they sell their excess energy back to the grid. For example, if a property owner sells 100 kWh of excess energy at a rate of 10 cents per kWh, they would earn a net metering credit of $10. These credits can be used to offset future electricity bills or sold back to the utility company at a fixed rate.
Local Regulations and Grid Tie Systems
Local regulations play a crucial role in determining how excess energy is handled and credited. Some utilities offer net metering programs that allow property owners to sell their excess energy back to the grid at a fixed rate. Others may offer a feed-in tariff, where property owners are paid a set rate for each unit of excess energy they produce and sell. When selecting a grid tie system, property owners should carefully review local regulations and ensure their system is designed to comply with these requirements.
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