Not too long ago, electricity worked as a one-way street—utilities produced energy and people consumed it. Solar energy has changed that model, enabling people who install solar panels on their rooftops to consume the energy generated and sell the rest of it back to utilities. This turns consumers into prosumers—people who both produce and consume energy.
Here are four fast facts about what it means to be a solar prosumer.
1. Prosumers don’t need to produce 100% of the electricity they consume
The solar panels on a homeowner’s rooftop might not produce all of the energy a home needs to function each day. Energy generation also depends on the season. For example, homes consume more energy for cooling in the summer and heating in the winter than they do in the spring or fall. This means that the solar energy being produced doesn’t have to equal the demand at all times; the solar may cover a portion, all, or more than a consumer’s load. This is especially true for people who have smaller rooftops. That’s why solar prosumers still connect to the grid and rely on utilities to balance supply and load just like other electricity consumers.
2. Prosumers don’t sell solar energy to other consumers
When prosumers produce more energy than they can use, the excess is sent back to the grid to be managed by the utility. However, not all the excess energy is captured back on the grid because the grid was initially built for power to go only one way. The U.S. Department of Energy’s Grid Modernization Initiative is working to change this by enabling power to flow on a two-way superhighway rather than a one-way street. This includes funding the development of new transformer technology that will allow larger volumes of solar-generated energy from rooftop installations scattered across a utility’s territory to be utilized efficiently onto the grid.