What Is A Srec
The Department of Energy created the Solar Renewable Energy Certificate, also known as the SREC, as an incentive for people to invest in solar power. The DOE pays companies for every ton of carbon pollution that they eliminate through the sale of energy produced from renewable resources. In essence, you can invest in solar energy and become a seller of electricity while still being able to recoup your cost of investment plus something extra through selling SRECs to utility companies. And you’ll never run out your supply either because these certificates can be traded in future years too.
Imagine that you are a homeowner who is thinking about going solar. If you install solar panels which produce 10 kilowatts of power from the sun then there will be a maximum of 10 units of energy which are granted to your account each month, through net metering agreements, based on the system’s energy production capacity. At night during periods when the sun has gone down then your home or business will use electrical components which aren’t supplied by the solar panels and generate electricity in order to supply this usage.
Homeowners Guide To Going Solar
Since 2008, hundreds of thousands of solar panels have popped up across the country as an increasing number of Americans choose to power their daily lives with the suns energy. Thanks in part to the Solar Energy Technologies Office’s investments, the cost of going solar goes down every year. You may be considering the option of adding a solar energy system to your homes roof or finding another way to harness the suns energy. While theres no one-size-fits-all solar solution, here are some resources that can help you figure out whats best for you. Consider these questions before you go solar.
How does solar work?
There are two primary technologies that can harness the suns power and turn it into electricity. The first is the one youre likely most familiar with photovoltaics, or PV. These are the panels youve seen on rooftops or in fields. When the sun shines onto a solar panel, photons from the sunlight are absorbed by the cells in the panel, which creates an electric field across the layers and causes electricity to flow. Learn more about how PV works.
Is my home suitable for solar panels?
How do I start the process of going solar?
Can I install solar myself?
How much power can I generate with solar?
Will I save money by going solar?
Can I get financing for solar?
How can I find state incentives and tax breaks that will help me go solar?
Is solar safe?
What does mean?
Governments And Renewable Energy
Since renewable energy is so efficient, production systems like solar panels and wind turbines produce a lot more electricity than a single entity could ever use. But why would utilities go through the trouble of purchasing this energy?
Well, because the government says so. In the U.S., the Public Utility Regulatory Policy Act dictates that electric utilities on the traditional power grid must purchase the excess electricity that renewable energy systems generate. It’s a way of encouraging renewable energy production without requiring utilities to invest in expensive renewable systems themselves.
While renewable energy producers typically still take some conventionally produced electricity from the grid, they make up for a lot — if not all — of what they use by funneling the excess electricity that their own systems produce back into the grid. You can receive compensation for the energy you put into the grid in two ways.
Some small-scale entities or individuals who sell electricity back to the grid receive payment for their contributions from utilities at a wholesale rate, also called avoided cost — meaning the cost that the utility avoids by buying electricity from you instead of generating it themselves. This deal is called net process and sale, and it uses two unidirectional, or one-way, electricity meters: one to track how much electricity a seller takes from the grid for normal use, and another to monitor the energy they generate and funnel back to the grid.
Don’t Miss: How To Apply For Government Subsidized Housing
What Is The Scheme
All energy suppliers with at least 150,000 domestic customers will be required to buy surplus solar, wind or other renewable energy generated by its customers under the smart export guarantee .
The companies will be able to set their own price for this energy. In the past, they paid into a shared pot to buy the renewable energy domestic households sold or exported to the grid. The export price paid was fixed by the government.
How To Sell Solar Power Into Your Grid And Make Money
From sloped roof installations to flat roof tilt-up arrays and building integrated models, possibilities for commercial solar power generation are varied and numerous. Companies joining in on the solar trend have the added bonus of selling excess power to the utility for money in the form of credits and savings.
The basic principle behind solar energy systems is relatively simple: solar panels installed on a roof or set of buildings generate DC power via photovoltaic cells a solar inverter transforms DC power to AC, which travels to a breaker box, which supplies the company’s electricity.
You May Like: Us Government Cars For Sale
Complete Guide For Solar Power Ontario 2021
Congratulations! Youve found the ultimate guide for going solar in Ontario!
Ontario is currently ranked the #9 province in the country for installing a solar power system, scoring as one of the best provinces for upfront system costs and financing options.
This page contains all relevant information about installing solar in Ontario including utility policies, system financing, solar incentives, and natural factors
The guide begins by answering the two most common questions about solar systems, then it explores each solar ranking factor.
You can read from top to bottom, or skip to your preferred section by clicking on it below:
|3. System Costs|
Alternatives To Owning Solar
If purchasing your own solar energy system isnt an option, consider the following opportunities as a way to support solar and clean energy.
: An emerging option for the customers of several Minnesota electric utilities customers is joining a community solar garden, These solar photovoltaic systems provide electricity to participating subscribers. They are a way for people in Minnesota to get at least a portion of their power from solar electric systems without installing their own stand-alone project. The Clean Energy Resource Teams offers information on Community Solar Gardens.
Participate in a green pricing program. Green pricing is a voluntary option offered by some Minnesota electric utilities that allows you to support renewable energy beyond what your utility would otherwise be required to do. You usually pay a little more for your energy to cover the incremental cost of the additional wind or solar energy. Check with your utility to see if it offers green pricing.
Recommended Reading: Government Bank Owned Foreclosed Homes In Polk County
Should I Still Get Solar Panels
Energy companies do not have to start making payments under the SEG scheme until January 2020, but one company Octopus Energy has already launched two tariffs. The first pays a fixed rate of 5.5p/kWh and the other a variable rate.
Solar panels installed now will be eligible for the scheme and consumers can sign up to suppliers as and when they offer tariffs, or wait until 2020. One benefit of installing now might be to avoid an increase in tax from October this year VAT on solar panels and batteries will rise from 5% to 20%.
Natalie Hitchins, head of home products and services at Which?, expects solar installations will slow this year, but says that people invest in them for a number of reasons and often it wont be about making the money back quickly, instead seeing the environmental impact as the most important thing. Anyone hoping to make money under the smart export guarantee should think carefully. We dont know what rates or contract terms will be offered and rates might vary widely between energy companies, she says.
Anthony Kyriakides, head of renewables at the Energy Saving Trust , agrees there is significant uncertainty. How will people search for different tariffs and compare offers? he says. It is understandable that many homeowners will hold off until things are clearer.
Schemes For Solar Energy By Ministry Of New And Renewable Energy
Know about schemes for Solar Energy by Ministry of New and Renewable Energy. Links are available for schemes such as Capital subsidy for basic lighting through solar charging stations under State renewable energy development agencies and programme on Off-grid and decentralised solar applications for Jawaharlal Nehru National Solar Mission . Information on Rooftop PV and Small Solar Power Generation Programme is also provided.
A Vision For The Future
FPL points to its role in a particular bet on a solar future: Babcock Ranch, developed near Fort Myers by a company that extols it as the nations first sustainable town. The power company built a solar farm that largely supplies the towns energy needs.
FPL announced four similarly sized projects in April, and Duke says it is also building farms that size.
FPL has been working for many years to advance solar energy while keeping customer bills low, said Mark Bubriski, a company spokesman. The utility said it plans to add enough solar capacity to power about 1.5 million homes and provide 20 percent of its total generation by 2030.
During legislative hearings in Tallahassee, Syd Kitson, the developer of Babcock Ranch, which will include 20,000 homes when fully developed, proposed building a town that could showcase the benefits of solar power.
Im an environmentalist who is a developer, Mr. Kitson said. It is the Sunshine State, so it made a lot of sense to us.
But solar proponents feel the utilities need to be pushed further.
Scott McIntyre, chief executive of Solar Energy Management, a statewide leader in commercial solar power based in St. Petersburg, said the gains the state appeared to be making were little more than a facade.
Florida is not going to do any type of energy policy that benefits consumers, not for a long time, Mr. McIntyre said. They just keep making the hurdles higher and higher.
Sell Solar Energy Back To The Grid To Create A Passive Income Stream
When you buy a solar energy system, whether it be an entire home or just panels on the roof, the electric company becomes your partner. The utility company must sign a contract with you before you can break ground on your system. Then will pay you for any excess electricity that is generated by the panels. You can then use these proceeds to offset any future electric bills at your home. It’s really all win-win when you think about it, both parties benefit from using solar power. Basically, if your panels are generating a surplus of solar power, you aren’t just saving money. You’re earning money too. This is called net metering, a great addition to your streams of passive income. In addition, read on to learn about Renewable Energy Credits , a great way to make money while saving the world.
You May Like: Government Jobs For History Majors
How To Sell Solar Power Back To The Utility
Have You Ever Wondered What To Do Or What Happens With The Excess Solar Produced By Your Solar Energy System?
Net-Metering Allows You To Further Lower Your Electricity Bill, Learn More About Net-Metering and How To Maximize Your Savings!
For People Wondering How Do You Sell Solar Power Back To The Grid Read Below!
So youve gone ahead and taken the leap: Youve installed solar panels in your home or office. Youre feeling pretty good about this decision youre pulling in eco-friendly, renewable energy the panels were cost-effective and the installation was seamless youre confident that youll be saving money in energy costs year after year. But heres an added bonus on top of the solar tax credit you might not have known about: you can sell your solar power back to a utility company. Thats right for savvy consumers, solar energy can both save and earn all at the same time. Hows that for multitasking?
If you are generating more power from your solar panels than youre using in your home or business, many electric companies will apply a credit to your monthly bill. Depending on the month, will influence how much does the electric company pay for solar power. For example, currently in November 2018 the true up rate is $ .03988 a kilowatt. For every kilowatt you sell back to SDGE, they will credit your account .40 cents a kilowatt. If you were to sell 100 kilowatts of solar power back to the electric company they would credit your upcoming bill 40 dollars!
Why Generate Your Own Power
More and more businesses are tapping into natural resources, like wind, solar and biomass, or waste that once went to landfill to generate electricity, and with very good reason. Just some of the benefits of becoming an electricity generator include:
- New revenues by getting paid for the electricity you export to the grid and the associated renewable energy certificates
- Lower electricity costs by reducing your exposure to both volatile wholesale energy prices and rising delivery charges
- Reduced carbon emissions and improved sustainability reporting with a lower carbon electricity supply than the standard grid mix
- Improved operational resilience with less reliance on electricity imported from the grid
You May Like: How To Get Fund For Startup From Government
Renewable Energy Credits And Net Metering Agreements With Local Utilities
The government has a program in place where they value solar energy uses which helps them make decisions concerning future clean energy legislation. To make these calculations, the government needs to determine how much electricity any given array of panels can produce at any given time during daylight hours throughout the year. This information is vital for anyone considering using solar power. This way, they’ll know how much income they might receive from selling excess electricity generated by their panels back to the utility companies on an ongoing basis.
In essence, every ton of carbon pollution that is eliminated from the environment is awarded a Renewable Energy Credit which works like a commodity. These credits can be sold in the open market and will increase as demand for clean renewable energy increases.
Basically, these credits are used to prove that an agency has used green energy sources for their power consumption. The government has measures in place that use RECs to create a marketplace where consumers can invest in renewable energies and enjoy tax breaks or other incentives for doing so.
If the government has a program in place which awards RECs for every ton of carbon pollution eliminated from the environment, then solar power is actually a green energy source and there are many benefits for anyone deciding to go solar.
Units Generated And Load Running
The system is expected to generate approximately 10 to 12 units of electricity on a daily basis depending on weather conditions. The installation was a success. The system is now running on solar and provides electricity in house at all times. Their monthly electricity bill was approximately INR 3500 per month.
Also Check: Practice Test For Government Jobs
New Laws To Guarantee Payment For Solar Homes Providing Excess Electricity
Homes and green businesses generating renewable and low-carbon electricity to be guaranteed money for power supplied to the grid.
- 9 June 2019
- Fee will not be added to consumer bills as part of the UKs transition to a subsidy-free, cleaner and greener energy system under Smart Export Guarantee
- current tariffs and SEG payments to boost renewables sector as UK aims to become a net zero emissions economy a key part of our modern Industrial Strategy
New solar homes and businesses creating and exporting electricity to the grid will be guaranteed a payment from suppliers under new laws to be introduced by the government this week .
The Smart Export Guarantee will ensure small-scale electricity generators installing solar, wind or other forms of renewable generation with a capacity up to 5MW will be paid for each unit of electricity they sell to the grid – tracked by their smart meter.
Residential solar panels are now over 50% cheaper than in 2011. SEG will build on the previous government subsidy scheme, which drove the installations of 850,000 small-scale renewable projects, but without passing on the cost to consumers.
Encouraging suppliers to competitively bid for electricity will give households the best market price for their energy, while providing the local grid with more clean, green energy, as the UK bids to become a net zero emissions economy.
Energy and Clean Growth Minister Chris Skidmore, said:
Calculating Solar Power Costs
Once the above costs and benefits are determined, a solar system can theoretically be evaluated using the discounted cash flow method. Outflows at the beginning of the project would consist of installation costs , and inflows would arrive later in the form of offset electricity costs .
Rather than using DCF, the viability of solar power is usually evaluated by calculating the levelized cost of electricity , then comparing it to the cost of electricity charged by the local utility. The LCOE for household solar will typically be calculated as cost/kilowatt-hour – the same format commonly used on electricity bills. To approximate the LCOE, one can use the following equation:
LCOE = Net Present Value of the Lifetime Cost of Ownership / Lifetime Energy Output
The useful life of a PV solar module is generally assumed to be 25-40 years. The cost of ownership includes the maintenance costs, which must be discounted to find the NPV. The LCOE can then be compared to the cost of electricity from a utility remember, the relevant price is that which occurs during times at or near peak PV solar production.