Grid Tied Net Metered systems involve connecting your system to the power grid but you use the power, and it offsets your electric bill. If you don’t produce as much electricity as you use then the grid just supplies the difference and you get billed for that difference, if you produce more than you use, the excess just goes to the grid. Whether you get paid for that difference that you supply to the grid depends on the net metering rules in your jurisdiction. You may not get paid for that difference, but you may be able to carry forward that excess of electricity you produced over what you used for a period of time so that you can use it or “draw down” on it in periods of time when you are producing less electricity than you are using. For instance in Ontario currently, you don’t get paid for excess electricity that goes to the grid in a net metering arrangement, however you can carry forward the excess electricity generated for up to one year, after that it expires.
Feed In Tariff Grid
Grid Tied Feed in Tariff (FIT) systems involve connecting your hydro system to the power lines and selling electricity to the power company. In certain jurisdictions there are Feed in Tariff (FIT) programs that allow individuals and companies to supply power to the grid and get paid specified amounts of money per Kwh usually for a defined contract period. These contract periods are for extended periods of time and usually indexed to inflation in some way and are designed to encourage investment in renewable energy by providing a reliable and known revenue source. The electricity produced by your system is metered the same as a house and you are paid for the electricity produced. The advantages of selling under a FIT program once approved is the reliable guaranteed revenue stream and contract period to pay for your investment. The disadvantage is that if you use electricity also, you will likely be paying for electricity at the normal rate the same as everyone else, and this rate is likely higher than what you will be paid under the FIT program. So for example, you may be selling electricity to the grid for one price, and then buying it back to use at a higher price. However, if you are able to generate a lot more electricity than you can use, a FIT contract is the only way to sell your electricity. Ensure that you have a FIT contract before installing a system if you are interested in selling electricity to the grid.
The Pros and Cons of Each Type of Connection