Grid Inter-tie

Solar panels (photovoltaics) are now being used, worldwide, in homes that are already hooked up to the local power utility. This is called grid inter-tie. Many people have chosen to generate some of their own electricity through the use of a solar electric system that is tied into the power utility grid.

The cost of setting up your own power system may seem expensive at first glance, especially compared to what the local power company charges you for electricity. With your own source of electricity you get a degree of independence from your local power company, as well as the knowledge that you are producing power in a green way. Your solar electric system will also provide a back up, if you include a battery bank, in the event of a power failure.

Producing and using your own power has the immediate effect of reducing your monthly power bills. You may also be able to sell unused power you're generating to the utility company, and get a credit on your utility bills – even getting a monthly check in some months rather than a bill. 

Rules and regulations vary greatly from region to region on the use of grid inter-tie systems. In some areas the power company will buy power back from you at the same rate they sell it. In other areas, they will pay you less for your power than they charge you for theirs, even though it is identical.

In most cases, your PV site will generate power until your batteries hit capacity, then you'll sell the excess to your utility company; sometimes this will be at the same rate they charge you for it, sometimes it'll be less – it depends on your local public utility commission.