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It is becoming increasingly popular in the United States to market solar energy to utility companies. Doing so requires an interconnection agreement with your local utility.

In a majority of states, homeowners using solar can take advantage of a concept known as net metering. The excess energy produced by your solar panels, through net metering, can be sold to local utilities. Because solar meters run backwards, it is possible to take advantage of this in the daytime while at work - your solar panels would feed the energy back to the utility, while later on in the evening you can use utility energy. You will be paid by the utility company at the same rate per watt as the rate that you are normally charged. Practically speaking, it is a tremendous way to slash or eliminate your electrical bill.

If you intend to sell electricity to the utility company, you can't just do it. Instead, you must get and sign an interconnection agreement with it. The names and terms may change from utility to utility, but the bottom line is that these agreements contain all you need to know about the terms of your venture. Let us study this more in depth.

Most states have their own laws that would make it necessary for you to be supplied with an interconnection agreement from the utility company. The agreement specifies the terms and conditions under which your system will be connected to the utility grid. You would be advised of the necessary permits needed, as well as information on connection details and home insurance.

You would also get the purchase and sale specifics in the interconnection agreement, sometimes as a separate piece of paper. Most of the time, it would not be necessary to install more than one meter to gauge how power is being transferred, as the existing meter could be ran forward when you are using the utility's energy and backward when the utility is drawing energy from you.

You may wonder if you can expect a check in the mail if the energy you supply exceeds the energy you used. Net metering laws, sadly, do not include such a provision. Instead, the company will credit the monetary equivalent of the excess generation to the next month's electrical bill until you eventually use it during a cloudy or rainy month.

Nonetheless, these are easy agreements to read, and shouldn't cause much stress or worry. You would still have to get one, though, if you wish to sell to local utilities.

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