Grid-tied systems are the most common type of solar PV system. Grid-tied systems are connected to the electrical grid, and allow residents of a building to use solar energy as well as electricity from the grid. Grid-tied systems do not need to produce 100% of the electricity demand for a home or business. When there is no demand for energy, the solar panels send excess electricity back out into the grid for use elsewhere. When a home or business is using energy, but the solar panels aren't producing enough energy (at night, or on a stormy day), electricity from the grid supplements or replaces electricity from the panels. Owners of a grid-tied system complete a net metering agreement with their utility.
This agreement allows utility customers to receive credit for the excess energy they generate, typically credited as a kilowatt-hour credit on the next month's bill. Net metering policies and agreements are different for each utility. Living with a grid-tied solar PV system is no different than living with utility electricity, except that some or all of the electricity you use comes from the sun.
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