electric meter

As more and more people are installing solar panels on their roof, I hear my friends talking about wanting to do grid tied solar so that they can make their electric meters run backwards and get a check from the electric company. I always hate to burst their bubbles, it is possible to do that, but it’s never as easy as it seems.

The electric companies are there to make money, that’s their bottom line, nothing wrong with that, but they will protect their ability to earn a profit at every turn. They need to be able to maintain the infrastructure they have developed that gets electricity from point A to point B and beyond. When just a few people were putting solar panels on their rooftops, it wasn’t a problem, but once solar panels came down in price and more people could afford them, it is becoming more commonplace to see solar panels adorning rooftops in neighborhoods.

Earning money from the power companies is a bit more complicated than just turning your meter backwards when you are generating more power than you are using. Many power companies would require a second separate meter to measure how much electricity you were putting back into the grid. They didn’t pay you what you were paying them per kilowatt either, just like any other industry, there is a wholesale and retail price. You are paying the retail price for your power, anything you sell back to the power company is done at wholesale price.

The power companies are trying to keep themselves ahead of the game, some are experimenting with charging extra fees if you are generating your own power while their customer, though in the case of the power company in the podcast, they quickly dumped that idea. They state that they aren’t trying to stop people from using solar, but are trying to make it work for everyone.

Listen to the show and let me know what you think.



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