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Producing more electricity than you use?

asked 2014-07-15 08:06:13 -0500

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updated 2014-07-15 08:06:13 -0500

alan-brockway gravatar image

Is it true that a new system is not allowed to produce more electricity than the previous calendar year ? I'm guessing its due to the loss in tax revenue?

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answered 2014-07-22 16:14:34 -0500

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updated 2014-07-22 16:14:34 -0500

john gravatar image

This is not true at all. If you system underproduces in the first year due to a heavy snowfall in the winter, no one is going to punish you in the second year when it produces more! There is no direct tax impact to solar energy production.

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answered 2014-12-12 14:46:30 -0500

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updated 2014-12-12 14:46:30 -0500

Here in NJ for net metering you can't design a system that is projected to produce more power than you have consumed in the past 12 months. If you do - you will need a load calculator filled out and sealed by a PE in the state. The actual output of your system once constructed has no limitations - if it produces 25% more than projected than that is fine. Keep in mind that having too much electricity doesn't benefit you because the utility will only true you up annually at a wholesale rate vs. a retail rate. For instance if you generate 1,000 extra kWh you will get only 5 cents or $50. However, if that same 1,000 kWh offset usage you were paying for at retail 18 cents - it has a value of $180. Keep in mind that the extra system you installed had a linear extra cost but when you produce too much electricity the payback is at 5 cents not 18 cents. Now in other parts of the US the rules may be different. We know someone in Minnesota for instance and they can build (residential) a system up to 40 KW regardless of their consumption. This is second hand and the details may be off - but each state has its own rules.

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Asked: 2014-07-15 08:06:13 -0500

Seen: 430 times

Last updated: Dec 12 '14