How grid connected solar panel systems work.

After speaking with many customers over this week, I noticed there is confusion with some solar / wind power shoppers about what the grid really means and how a grid connected solar photovoltaic (solar panel) system works for a home. So I decided to focus today's post about some of the basics. According to Southern California Edison the definition of "the grid" is the following:

"a large interconnection of both generation and transmission electrical subsystems
to facilitate efficient distribution of electricity to consumers and businesses."

The grid is a network in which electricity gets consumed and produced, therefore a grid connected system turns your home into an electricity producing asset that shares extra power with the grid. With a grid connected solar panel system you send extra power back into the grid, and receive a credit from the utility company for every kWh (kilowatt hour) you contribute to the grid. The of US Department of Energy Efficiency and Renewable Energy has created a good illustration of how a grid connected system works with a typical home.