What Is A Solar Buyback?
If you’re wondering what a ‘Solar Buyback’ is, it’s exactly what the name suggests. Your local energy provider will buy back the extra energy that you produce. Your agreement with them will vary though, as not every provider will pay you back at the same dollar per KiloWatt-Hour that you’re paying for the energy you consume.
Some months, when you’re at a high efficiency of what you use vs. how much energy your panels generate, can even result in a negative bill. Making solar panels, an even better option! Key details to consider for Buyback:
- Solar panel placement – our team can help map out potential savings based on where the sun hits your roof and at what angle, for how long each day.
- Buyback program details – each energy provider has a different buyback allowance, Green Mountain in Texas is one of the better options for rates.
- How much energy you use – even though you will be generating your own electric, you may not over-produce each day, turning off lights, and doing things like using energy efficient bulbs and windows can decrease your load
What can I expect for a solar buyback?
For example, if your provider has a 1:1 buyback agreement, this is what you can expect. If you buy energy from the grid at a rate of 12 cents per kWh, and the solar energy produced through the panels is more than your actual household consumption, then for each kWh of solar energy you over-produce during the day, they will credit your bill at that same rate (12 cents/kWh), and you’ll be supplying your neighbors with energy!
Consider These Factors Before Taking A Step:
First, you need to sign a net metering agreement, which states that the individuals and local utility stations (grids) have agreed to a process where the grid would be able to charge them over net power usage. Confirming the details of this agreement will help you to understand where the excess energy you’ve generated will go, and if you will be credited.
Additionally, the size of the solar energy system installed will be one of the deciding factors of how well could you benefit from the excess energy you produce, and if there is any at all. Our team’s goal is to get you the right size system so that you balance the cost of your system with the needs of your house, from there, we can decide if your net metering agreement makes sense to invest in a larger system.
“According to the Energy Information Administration, the average U.S. household uses 11,000 kWh of energy each year. That breaks down to roughly 915 kWh monthly and about 30 kWh daily.” Arcadia
Are You A Small Business?
Good news for small business owners. Utility companies now have an obligation for buying a fixed amount of solar power known as ‘renewable energy credits’. When small businesses supply back the energy to the utility grids, they earn this credit (SREC) at the market rate. IMPORTANT: When companies sell energy to the grids, they do not receive cash, but credits (different from SRECs).