Feed In Tariff Can Slash Your Electricity Bill by 90 Percent
updated at : Friday, December 30th, 2016
Feed in Tariff To Reduce Electricity Bills!
Feed-in tariff is a great tool to reduce electricity bills for solar energy system owners. The power company guarantees a fixed price for the ability to sell excess electricity produced by the energy system. This tool is not popular in the United States but widely used worldwide. This topic is important to know about in case it is adopted in the future.
Feed in Tariff Advantages
Feed-in tariff is a great electricity price slashing tool which guarantees a fixed price for excess electricity. This excess electricity is then sent over to the power company grid. The selling price is higher than the buying price which helps in reducing electricity bills for years to come.
Slash Your Electricity Buying Price
Feed-in tariff is one of many electricity price slashing tools. This energy incentive guarantees a fixed price for the excess electricity a solar energy system generates and sells. The solar energy system generates electricity. The owner of the home uses that electricity while selling the excess back to the power grid. The feed-in tariff guarantees the selling price of the excess electricity is higher than the original buying price.
Feed in Tariff Explained
If the homeowner is paying 13 cents/kWH to the power company for the electricity they use, the homeowner will be paid more than the buying price for the electricity they send over to the power company grid. How much more depends on state laws and the contract the state has made with the power company. Not all states have adopted this policy and not everyone will have the opportunity to get paid more for the excess electricity. The power companies have policies so the excess electricity is purchased and the owner is compensated.
How To Make Money With Feed-In Tariff
The forms of compensation differ from state to state. If you do happen to live in a state where feed-in-tariffs have been adopted, you are going to benefit from it in the form of reduced electricity prices. In some states, the power company will buy the electricity from you for as much as 18 cents/kWH while you are paying only 13 cents/kWH from the power company. The 5 cents/kWH electricity price savings might not sound that exciting but consider the savings over 25 years or more for which your solar system might be operational.
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