How Do You Sell Electricity?


Quick Answer

Except in the case of a licensed public utility, the only place to sell electricity is back to the electric company, as of October 2015. This sale is documented by an Energy Purchase Agreement between the customer and the electric company, together with installing the necessary metering equipment.

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Full Answer

Electricity sold to the electric company is usually the electric output not used by the customer, but a customer may sell all of his electric output to the power company. The customer must have a qualifying facility generating electricity to sell electricity to the electric company. A qualifying facility includes power generators run by solar energy, biomass, wind or water.

The customer’s power generating source must be approved in advance by the public utility and the required meter to measure the electricity produced and sold to the electric company is the customer’s responsibility. The electric company will pay for the power delivered to it according to the rates specified in the Energy Purchase Agreement.

Selling electricity to the electric company is allowed by the Public Utility Regulatory Policies Act of 1978, which was passed to encourage energy consumers to conserve resources, and make some money by selling excess electricity to a public utility.

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