Reselling Solar Power for Profit
One of the main advantages of switching to solar power is the independence it offers to its users. Be it through rooftop solar installations, tilted array farms or large-scale solar communities, there are numerous ways of generating solar power and profiting from it. Either through selling renewable energy credits or by crediting from net metering through excess energyReselling excess solar energy has become a common practice not only for companies but for regular consumers as well. Especially in states with conducive net metering laws, consumers can plan out in advance, analyzing their energy requirements and available resources and implement solar modules which generate excess energy. Consumers can then choose to sell the excess back to the energy grid at the current market charge.
Factors to consider before reselling solar power
Before implementing a solar power module, there are several factors that one should consider. Companies must assess the locally available resources and local laws and regulations. Individuals must assess their energy requirements and investment plans carefully in order to ensure sustained profits. Mentioned below are some of the critical parameters that need to be taken into consideration for generating profit from selling solar power.
- Net metering laws- Net metering is a mutual agreement that is reached between businesses or individuals generating solar power and regional energy utility centers. According to this agreement, the utility centers charge these individuals for net power usage. However, if the energy generation is in excess, then the company/consumer is credited. Different states have different laws and regulations regarding net metering.
- Commercial factors- The initial investments in setting up PV panels and solar farms are steep. The size and scale of solar generation is a key factor that decides the cost. As it is, in order to profit from solar energy, power generation needs to be in excess. Domestic consumers need to analyze their rooftop access and area, the various paneling options, yearly solar exposure and ease of access to the utility grid before making an investment. A detailed plan which has a clear and accurate projection for profits must be formulated based on all these commercial factors.
- Capitalizing on renewable energy credits- A small business can also profit from selling solar energy in the form of renewable energy credits. A single renewable energy credit represents 1 MW of solar power. Now utilities are under an obligation to buy a certain fixed number of renewable energy credits as a part for the Renewable Portfolio Standard which is effective in a lot of states. Small-scale businesses can sell solar energy credits at the market value of electricity and earn instant profits. Businesses can sell SRECs directly to the utility service or can go through an agent.
It is important to note that when solar energy companies or individual sell energy back to the grid, they do not earn cash. They earn credits (not SRECs) which can be used for payment structures and earning benefits and savings.