Selling power to your local grid may not be such a bad business idea if you think of it. Though it requires a lot of research and hard work on your part, it certainly can be done and may prove to be a fairly good side hustle. Below, tips on how to sell electricity to your local power provider have been outlined.
Generally, you have to ask yourself if really it's worth the investment. It is important to understand that wind energy will vary with time or area. What this means is that in some areas, setting up a wind turbine may not be a wise move. Basically, the investment must make reasonable returns in the long run.
You may also want to consider using a broker. In most states, it can be difficult selling directly to your local utility. The problem compound if you are not selling that much power. To help solve this issue, you might want to use a broker as an intermediary. Basically, your broker will be responsible for selling the power back to the grid.
There are several government initiative meant to encourage such investments, you might want to take advantage of such arrangements. Most states want local power firms producing clean energy. In fact, there is legislation in certain states that will require the power utility firms to generate a certain percentage of power from renewable sources such as solar and wind. This is where private generators come in.
Setting up a small power station is work meant to be done by a professional. You will need to contact a skilled electrical engineer to assist you with installation. You also need to marshal funds for the project. Typically, you may require at least $50K to fund the project.
It's also advisable to have an idea of laws affecting this business. For instance, there is the "net metering laws". In most states, power utility firms are supposed to buy power at the same rate they sell to their customers.
Communication with your local utility company is vital. You will need to approach the power utility firm you intend to sell to and have a serious talk on how best to go through with the process. Basically, they will advice on what is required, standards etc. In essence, it's just like when doing business with a customer; communication must be maintained at all levels. Making assumptions based on what you've heard or read is never wise.
If there is any advice you need to take from this piece is doing research. You need to do a lot of reading before venturing into this form of business. Any savvy business person will tell you to have a good business; lots of research is necessary. Checking out a few sources online, reading a few books talking to people who are in this business are all part of research. Doing research helps you identify how to sell electricity to the grid.
Generally, you have to ask yourself if really it's worth the investment. It is important to understand that wind energy will vary with time or area. What this means is that in some areas, setting up a wind turbine may not be a wise move. Basically, the investment must make reasonable returns in the long run.
You may also want to consider using a broker. In most states, it can be difficult selling directly to your local utility. The problem compound if you are not selling that much power. To help solve this issue, you might want to use a broker as an intermediary. Basically, your broker will be responsible for selling the power back to the grid.
There are several government initiative meant to encourage such investments, you might want to take advantage of such arrangements. Most states want local power firms producing clean energy. In fact, there is legislation in certain states that will require the power utility firms to generate a certain percentage of power from renewable sources such as solar and wind. This is where private generators come in.
Setting up a small power station is work meant to be done by a professional. You will need to contact a skilled electrical engineer to assist you with installation. You also need to marshal funds for the project. Typically, you may require at least $50K to fund the project.
It's also advisable to have an idea of laws affecting this business. For instance, there is the "net metering laws". In most states, power utility firms are supposed to buy power at the same rate they sell to their customers.
Communication with your local utility company is vital. You will need to approach the power utility firm you intend to sell to and have a serious talk on how best to go through with the process. Basically, they will advice on what is required, standards etc. In essence, it's just like when doing business with a customer; communication must be maintained at all levels. Making assumptions based on what you've heard or read is never wise.
If there is any advice you need to take from this piece is doing research. You need to do a lot of reading before venturing into this form of business. Any savvy business person will tell you to have a good business; lots of research is necessary. Checking out a few sources online, reading a few books talking to people who are in this business are all part of research. Doing research helps you identify how to sell electricity to the grid.
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