Excess Electricity farmed in Maryland question

[JustEric]

I live in Howard County Maryland and use BG&E as my power company. Can you tell me what happens with excess electricity that is generated by solar power?

I think there are two options.

Option 1 is to turn the meter backwards and use the electricity later when the PV is not generating electricity. For example, I generate 10 units of unused electricity and my meter turns back 10 units. When I need those units back, the meter turns 10 units forward. It‘s a wash, I got out what I put in and I'm happy.

The other option is for the power company to buy the surplus electricity at a very low rate and then make you pay a higher rate for electricity when you need it. For example, if I generate 10 units of surplus electricity and the power company pays me 6 cents for each unit. Then when I need energy they charge me 14 cents for each unit. When all is said and done, I have lost 8 cents per unit and I'm mad.

Anyone know which one applies in Maryland with BG&E?

Thanks,
Eric

[Sunking]

Option 1 is to turn the meter backwards and use the electricity later when the PV is not generating electricity. For example, I generate 10 units of unused electricity and my meter turns back 10 units. When I need those units back, the meter turns 10 units forward. It‘s a wash, I got out what I put in and I'm happy.

The other option is for the power company to buy the surplus electricity at a very low rate and then make you pay a higher rate for electricity when you need it. For example, if I generate 10 units of surplus electricity and the power company pays me 6 cents for each unit. Then when I need energy they charge me 14 cents for each unit. When all is said and done, I have lost 8 cents per unit and I'm mad.

Both options are correct. Which method used depends on your State and Local energy policy laws. In states with Net Metering Laws option 1 is what electric companies are forced to do. If a state does not have Net Metering Laws most of the utilities exercise option as they are not in biz to give away their product and services.

[JustEric]

Net Metering in Maryland

I think Maryland is a Net Metering state

Thanks,
Eric

[inetdog]

I think Maryland is a Net Metering state

Thanks,
Eric

The relatively small downside of Net Metering is that the utility is usually not obligated to pay you anything for any excess production at the end of each 12 month period. So there is no benefit at all to building excess capacity unless you think your loads are likely to increase. In some states the utility does not allow you to install a nominal capacity that is greater than your historic annual usage.

[russ]

The other option is for the power company to buy the surplus electricity at a very low rate and then make you pay a higher rate for electricity when you need it. For example, if I generate 10 units of surplus electricity and the power company pays me 6 cents for each unit. Then when I need energy they charge me 14 cents for each unit. When all is said and done, I have lost 8 cents per unit and I'm mad.

Thanks,
Eric

They pay wholesale in that case. You want some special sweetheart deal where they pay you extra?

[inetdog]

... if I generate 10 units of surplus electricity and the power company pays me 6 cents for each unit. Then when I need energy they charge me 14 cents for each unit. When all is said and done, I have lost 8 cents per unit and I'm mad.

"Buy low, sell high" is the American Dream. Can you blame the utility for wanting to practice that on you?

[Naptown]

I think Maryland is a Net Metering state
Correct it is and the even up month is in April
Thanks,
Eric

The relatively small downside of Net Metering is that the utility is usually not obligated to pay you anything for any excess production at the end of each 12 month period. So there is no benefit at all to building excess capacity unless you think your loads are likely to increase. In some states the utility does not allow you to install a nominal capacity that is greater than your historic annual usage.

This is true in Maryland. Net metering where you are buying and selling power over the corse of the year as long as you do not exceed your use is at the same delivered rate ( operative word there is delivered including all taxes surcharges for transmission, distribution etc) basically everything that is charged for by the KWH other than the subscriber charge or in other words what you pay them to send you a bill and be connected.
Now under Maryland law they have to
PY you for any excess generation. This is calculated Annually generally in April. If you have a net generation surplus meaning you generated more than you used in a given year they must pay you for the excess electricity you generate. However this is at the wholesale or avoided cost. Which is much lower than the retail rate you are paying (about 1/2 or less. You will however retain your SRECS on the over generation which currently about equal to the retail rates but will drop in future years.
In most of Maryland the retail charge is between .11 and .15 per Kwh if you are purchasing from the utility that delivers the electricity to you. If perchance you are buying from a third party supplier your actual rate would be their rate plus delivery charges plus subscriber charges as your home utility would be the one billing and collrcting for the other provider. The wholesale or avoided cost for this payment or credit is dependent on the suppliers wholesale or avoided cost rate.
There are numerous suppliers and utilities in Maryland. BGE, SMECo, Pepco , Delmarva. Potomac edison And Choptank come to top of mind.
Each will have their own avoided rate based on what they pay on the wholesale level per KWH it is rare that a residentialProject can produce more than what is used on site and is generally discouraged due to low return on the investment however on commercial projects the numbers can work if the tax equity is high enough

[inetdog]

If perchance you are buying from a third party supplier your actual rate would be their rate plus delivery charges plus subscriber charges as your home utility would be the one billing and collrcting for the other provider. The wholesale or avoided cost for this payment or credit is dependent on the suppliers wholesale or avoided cost rate.

I can't speak on Maryland, but at least in some other states third party suppliers are not required to offer net metering even when the delivering POCO is. Some might do it voluntarily for their own marketing reasons, but it would be a money loser for them.

[Sunking]

I can't speak on Maryland, but at least in some other states third party suppliers are not required to offer net metering even when the delivering POCO is. Some might do it voluntarily for their own marketing reasons, but it would be a money loser for them.

Not nessecarily. In any state with Net Metering Laws the electric rates are artificially raised on everyone to cover the expense and make the POCO a profit. That is my primary beef about Net Metering. In TX we do not have net metering laws and are deregulated.

[inetdog]

Not nessecarily. In any state with Net Metering Laws the electric rates are artificially raised on everyone to cover the expense and make the POCO a profit. That is my primary beef about Net Metering. In TX we do not have net metering laws and are deregulated.

However, if the third party power dealers (I won't call them suppliers) benefit from an overall higher rate structure whether they offer net metering or not, they still have no incentive to do so if not required to. A lot depends on whether, in regulated states, their profits are also audited by the PUC, or they are considered "OK" as long as they are competitive to the regulated main provider/transporter. I honestly do not know how varied the state options are at this time.