The energy sector has been faced with many challenges over the years. The main reason for this is the continued political instability in the countries that hold the largest deposits of petroleum products. Many people and organizations are now increasingly moving towards renewable energy sources. After people invest in the new alternatives, they often end up with an excess. Many do not know how to sell electricity and add onto their income.
For many years electric energy production has been hinged on gigantic generators that are run on oil, natural gas and coal. These sources of energy are unfortunately, non-renewable. Their supply is limited and they will run out over time. This is in contrast to renewable sources such as solar and wind energy whose supply is unlimited. The only downside is that it is a bit expensive to purchase and set up the equipment.
Many governments are actively involved in the process of harnessing and using the renewable resources. As a means of encouraging individuals who generate the energy, they issue what are known as renewable energy certificates (RECs). The issuance of such a certificate simply means that the government has established ownership of the energy resource. One certificate is equivalent to 1,000 kWh channelled back to the grid. These certificates are redeemable.
Redeeming the credits is often a challenge for many people. This has given rise to several broker companies that buy the credits from several sellers and later redeem them on their behalf. The rates vary from one company to another but generally each megawatt produced is redeemed between USD 200 and 300. It is important to note that this is not payment for electricity per se but some form of a reward for generating renewable energy.
Another option that can be used is for the seller to connect to the grid system using some form of a meter. There are various forms of meters with the commonest known as a net meter. A net meter is used to indicate the excess produced by the seller and it is this excess that is compensated by the utility company.
Meters are fitted to the equipment during installation of the equipment. One should make sure that these meters are accredited by the relevant authorities, failure to which they risk rejection. One will be well advised to have one of the representatives from the utility company during installation to avoid future disappointments.
Individuals who sell their energy directly to utility companies often have to follow certain set guidelines. These may include, for example, producing electricity in a method that is in line with the environmental policies, using certain models of equipment, conforming to safety requirements and so on. Sellers who fail to adhere to these guidelines usually have their electricity rejected but may negotiate with another company.
It is common for a utility company to insist that the seller must be their customer. There are many other companies, however, who buy from independent sellers. It is important for the seller to have this information beforehand. Another important thing that one needs to find out is the procedure used in compensation. For instance, some companies will compensate for all the energy produced while others only compensate for the excess. Persons that wish to get more information on how to sell electricity are advised to talk to experts in this field.
For many years electric energy production has been hinged on gigantic generators that are run on oil, natural gas and coal. These sources of energy are unfortunately, non-renewable. Their supply is limited and they will run out over time. This is in contrast to renewable sources such as solar and wind energy whose supply is unlimited. The only downside is that it is a bit expensive to purchase and set up the equipment.
Many governments are actively involved in the process of harnessing and using the renewable resources. As a means of encouraging individuals who generate the energy, they issue what are known as renewable energy certificates (RECs). The issuance of such a certificate simply means that the government has established ownership of the energy resource. One certificate is equivalent to 1,000 kWh channelled back to the grid. These certificates are redeemable.
Redeeming the credits is often a challenge for many people. This has given rise to several broker companies that buy the credits from several sellers and later redeem them on their behalf. The rates vary from one company to another but generally each megawatt produced is redeemed between USD 200 and 300. It is important to note that this is not payment for electricity per se but some form of a reward for generating renewable energy.
Another option that can be used is for the seller to connect to the grid system using some form of a meter. There are various forms of meters with the commonest known as a net meter. A net meter is used to indicate the excess produced by the seller and it is this excess that is compensated by the utility company.
Meters are fitted to the equipment during installation of the equipment. One should make sure that these meters are accredited by the relevant authorities, failure to which they risk rejection. One will be well advised to have one of the representatives from the utility company during installation to avoid future disappointments.
Individuals who sell their energy directly to utility companies often have to follow certain set guidelines. These may include, for example, producing electricity in a method that is in line with the environmental policies, using certain models of equipment, conforming to safety requirements and so on. Sellers who fail to adhere to these guidelines usually have their electricity rejected but may negotiate with another company.
It is common for a utility company to insist that the seller must be their customer. There are many other companies, however, who buy from independent sellers. It is important for the seller to have this information beforehand. Another important thing that one needs to find out is the procedure used in compensation. For instance, some companies will compensate for all the energy produced while others only compensate for the excess. Persons that wish to get more information on how to sell electricity are advised to talk to experts in this field.
About the Author:
Read more about How To Sell Electricity That Is Generated At Home visiting our website.
No comments:
Post a Comment