IV. Grid Tie & Off the Grid
When installing a solar panel system you can either
choose to hook up into the “grid” or go “off the
grid.”
Grid tie
Grid tie means that your solar panel system is hooked up directly
to your electricity provider. Your system will use the energy produced
by the solar panels first during the day and draws whatever else it
needs from your utility company during the hours the solar panels
aren't producing electricity. During the day, if your solar panels
system produces more electricity than is used in your home, the extra
electricity is fed into the utility grid generating a credit on your
electric bill. When this happens, you will be able to see your meter
literally spinning backwards. This is great especially if your on
vacation. One advantage of not having battery storage is not having
to deal with the regular maintenance of the batteries.
If your budget allows it, you can buy batteries for energy storage
as well. If your electricity goes out, your inverter will switch
to battery power to supply your homes need. That away you can keep
your important equipment running during these blackouts. The battery
storage is a great solution for those homes that don't have easy
access to a utility grid or is located in an area that has frequent
outages.
If your electricity shuts down because of storms or blackouts,
your solar panels system without the batteries will shut down with
it. This safety measure occurs to prevent surges of power traveling
the grid and causing injury to a repair person working on the lines
or other types of damage. If you have backup batteries, you won't
experience this inconvenience. When the electricity shuts down,
your solar panels system will automatically disconnect itself from
the utility companies grid and extract power from the battery storage.
When the electricity comes back on, your solar panels system will
reconnect automatically.
If the grid tie option is what suits you best, then there are a
couple of things you need to do. First, call your utility company
and find out if they allow you to hook up solar panels into their
electricity grid. Most do because of the national law that allows
connectivity to the grid, however some rural electricity companies
are exempt from this law. Second, ask your electricity company if
they buy the energy your solar panels produce at the retail rate
or wholesale. Ideally you'll want the electricity company to buy
back any excess electricity that your solar panels produce at the
same retail rate that you buy electricity from them at. This is
called “Net Metering” and it's the simplest way to setup
a solar panels system. In this particular type of solar panels system
you only have one utility kWh meter and it's allowed to spin in
either direction depending on if you are buying or selling energy.
If your electricity company buys the energy you produce at wholesale
rates, you'll be required to install a second kWh meter to record
any excess energy that you will sell back to them. Usually the wholesale
buy back rate is only a few cents per kWh produced.
You can call your electricity company or check out our Solar
Panels Rebates page to see if your state offers either “Net
Metering” or wholesale buy back, and while your there, check
for other incentives for installing a solar panels system. Recently
a federal bill was just extended and updated that gives grid-tied
systems a 30% tax rebate on their new solar panels installation.
Unfortunately for those off the grid, this incentive doesn't apply.
Off the grid
Off the grid means living in a self sufficient manner, producing all
of the power yourself without relying on utility companies. Your solar
panels are not hooked into the grid and all the electricity you produce
is stored in battery cells. All of your electric power is produced
using solar panels, wind, hydro, and/or generators etc. Your water
source comes from a stream, well or lake that is filtered.
Every year more people are choosing to go off grid, whether it
be their residence or vacation cabin. There are many reasons people
choose to go off the grid. It can be a very powering and liberating
experience knowing your not relying on anyone to provide your power.
Plus not receiving all of those monthly bills doesn't hurt. A rough
estimate of people living off the grid in the United States is said
to be over 200,000 and rising. As the electricity prices keep rising
and the cost of equipment to live off the grid is falling, going
this route is starting to look like the more economical and cleaner
route to take in contributing to a greener future.
Part
V. How Many Solar Panels?-->
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