Sell Solar Energy Back to the Grid to Create a Passive Income Stream

When you buy a solar energy system, whether it be an entire home or just panels on the roof, the electric company becomes your partner. The utility company must sign a contract with you before you can break ground on your system. Then will pay you for any excess electricity that is generated by the panels. You can then use these proceeds to offset any future electric bills at your home. It’s really all win-win when you think about it, both parties benefit from using solar power. Basically, if your panels are generating a surplus of solar power, you aren’t just saving money. You’re earning money too. This is called net metering, a great addition to your streams of passive income. In addition, read on to learn about Renewable Energy Credits (REC), a great way to make money while saving the world.

How Does Net Metering Work?

As mentioned above, net metering allows you to sell electricity back to your utility company if you produce more than you need at any given time for your home or business. Your local utility company will sign an agreement with you, the solar array owner, and based on the kilowatts of your solar system and its annual production capacity, will determine what exactly your monthly bill will be for this service.