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Tractor Talk Discussion Board

Re: Electric meter running backwards

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Posted by Rich_WI on May 10, 2014 at 15:57:00 from (

In Reply to: Electric meter running backwards posted by Tom in TN on May 10, 2014 at 12:16:50:

Quoting Removed, click Modern View to see

You have 2 choices Tom. You either have to use batteries to store the electricty.... or you can still hook up to the utility system, they call that grid tied. When you are grid tied, during the day you "sell" electricty back to the power company and at night you "buy" electricty from the power company. The power company is acting as your battery.

The big thing to think about is some states are generous with the buy/sell part, others not so much. Some states "buy" your surplus electricty from you at normal retail rates (the full rate that you pay on your electric bill). Other states "buy" your surplus electricty from you at what they call "production cost". That means, they know how much electricty costs them at the power plant and they know how much it costs to maintain the lines. They only pay you the production cost amount. Usually that price is about 1/3 of the total cost on your electric bill.

If this system was built in Virginia, it looks like its a good state because they net meter back to the customer at retail rate (with many additional policies in effect). Thats how some people can pay for these systems so soon; federal rebates + state rebates + favorable state laws that let people sell back surplus electricity at retail rates = quick payback.


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