The use of solar energy is on the rise as the world aims to move toward more sustainable options. According to the U.S. Department of Energy, the United States generated 5.6% of its electricity from solar; this is up from 4.8% in 2022. We can expect that to continue to trend upwards as more and more solar energy projects come online across the country. As more farmers, business owners, and homeowners implement solar, many of them want to know if it’s possible to sell their energy back to the power company. At Sun Farmer’s Group, we’ve installed solar systems on farms and businesses that made plans to sell their unused energy back to their local power companies. In this article, we will explore the basics of net metering, its benefits, and the potential drawbacks.
Understanding Solar Energy
Before getting into the specifics of how to sell your solar energy to the power companies, it’s important to establish an understanding of how solar energy works. At its core, solar energy is the process of converting the sun’s rays into usable power. This is achieved by using solar panels with photovoltaic cells that convert sunlight into direct current electricity. Using an inverter, that direct current electricity is converted into alternating current electricity which can then be used to power your farm, business, or home. These systems can greatly reduce your reliance on fossil fuels and other traditional energy sources, saving you money and making your business or lifestyle more sustainable and clean.
Definition of Net Metering
The initial question remains…can you sell your solar energy back to the power companies? The answer is yes, as long as you don’t live in Alabama, South Dakota, or Tennessee. (These three states do not allow net metering.) On most farms or businesses, solar systems are generating an abundance of energy. This means that there is potentially unused energy going to waste. The process that makes it possible to sell that unused energy back to the power companies is called net metering. Once hooked up, the utility companies will track the unused energy and either provide credits to the generator or monetary compensation.
What Are The Benefits of Net Metering?
Net metering can be beneficial for any farmer or business owner who has solar installed. Here are some of the key benefits you can look forward to if you’re interested in net metering on your system. Keep in mind, the weight of these benefits can vary greatly depending on where you live.
- Additional revenue stream. This is one of the most immediate and enticing benefits for most farmers and business owners. Net metering can put extra money in your pocket without any additional work. It can also greatly reduce other energy costs that might arise.
- Contribute to sustainability. This is a win for you and your community. Selling solar energy back to the power companies means they don’t have to produce as much energy through non-renewable resources. This reduces your carbon footprint and the carbon footprint of your community at large.
- Insulation from price volatility. The cost of energy can fluctuate significantly and make it hard on your finances. Net metering and solar energy can protect your farm or business from the volatile nature of energy prices and solidify your financial future.
Potential Challenges & Drawbacks of Selling Solar Energy
Although net metering can have substantial financial and sustainability benefits for you as a farmer or business owner, there are some potential challenges that you might run into. These are not meant to be a deterrent in any way, but more of a list of considerations before putting all of your eggs in one basket.
- Net metering prices can vary. Depending on the state and the power company involved, net metering prices can fluctuate from region to region. This can either be a good thing or a bad thing based on which side of the coin your area lands on. Also, since net metering is still a relatively new concept, states are still reviewing the policies on the practice and are releasing new legislation that could potentially impact your future involvement in certain programs.
- Installing solar is an upfront investment. If you are a farmer or business owner who has not gone solar yet, you should expect to invest a significant amount of money early on. The good news is that with grants like the Rural Energy for America Program (REAP), many farmers qualify for up to $1,000,000 in federal grant money to help cover the costs of sustainable projects like solar.
- Solar energy production isn’t always consistent. Everything from unfavorable weather conditions to geographical challenges can have a negative impact on how much energy your solar system is generating. This means that, if you plan on making net metering a significant portion of your income, you will need to plan for a certain amount of fluctuation in the amount of unused energy available for sale at the end of each month.
Final Thoughts on Whether You Can Sell Solar Energy Back to the Power Company
Selling the energy produced by your solar system back to the power companies is a great way to help supplement your finances and reduce your carbon footprint in the process. It’s important to check with your state’s policies before setting up a net metering solution on your property to ensure you’re getting the best rates and that the effort is worth it for you in the end. At the end of the day, it’s always best to consult with a solar energy expert who can help you navigate the details so that you are set up for success.
How Sun Farmer’s Group Can Help
Sun Farmer’s Group is the first true turnkey solution for agricultural solar energy. Our proprietary program has brought all of the in-house expertise to the table in grant writing, financing, tax credit monetization, installation, and so much more. Unlike other companies, Sun Farmer’s Group empowers farmers with a no-money down solution that greatly reduces and eventually eliminates your power bill altogether. The future is as bright as the sun, and we’ll help you turn it into power!
Get in Touch
If you’re ready to learn more about how Sun Farmer’s Group can help you put more money in your pocket, call 877-417-3222 today!