Net Metering: Net metering allows customers with Solar panels or other renewable energy systems to offset their electricity bills by receiving credits for the excess electricity they generate and feed back into the grid. These credits can be used to offset future electricity consumption, effectively allowing customers to “bank” their excess electricity for later use.
Renewable Energy Certificates (RECs): RECs are tradable certificates that represent the environmental attributes of renewable energy generation. Customers who generate renewable energy, such as through Solar panels, can earn RECs for each megawatt-hour of electricity produced. These RECs can then be sold on the open market, providing an additional source of revenue for renewable energy system owners.
Feed-in Premiums: Feed-in premiums are a form of incentive provided to customers who generate renewable energy and feed it back into the grid. Unlike FiTs, which offer a fixed rate for excess electricity, feed-in premiums provide additional financial incentives to encourage renewable energy generation. Feed-in premiums can be structured in various ways, such as through fixed payments or performance-based incentives.
Power Purchase Agreements (PPAs): PPAs are contracts between renewable energy system owners and electricity retailers or other buyers, where the buyer agrees to purchase the electricity generated by the system at a predetermined rate. PPAs provide a stable source of revenue for renewable energy system owners and can help facilitate the financing and development of renewable energy projects.
