Why Sell Excess Renewable Power
At times, the DRG (Distributed Renewable Generation) may generate power in excess of
what is utilized by the consumer. In case the consumer has an interconnection agreement
with an electric utility, this excess power may be sold to a Retail Electric Provider (REP).
Depending on your location, you can sell excess power in two ways:
For regions with retail electric competition: If you live in such regions, you must
sell to the REP from whom you purchase your electricity. However, you should
remember that not all REPs are required to buy this power. Some REPs, which do
buy excess power generated by the DRG, may even require that the customer
subscribe to a particular retail offer. Some other REPs may allow the consumer to
select the purchase and sales offers independently. Many power websites let you
search online to find and compare DRG purchase offers. You may either search by
‘TDU Service Companies’ or use the ‘Zip Code’ to find such offers. As retail electric
consumers, if you want to install DRG, you will need an interconnection agreement
with your locality’s electric T&D utility to be signed. If you are wondering what an
interconnection agreement is, it’s an agreement that details how to interconnect
your renewable power generating device to the transmission and distribution
system of your utility.
For regions without retail electric competition: Electric cooperatives or
municipal utilities serve most regions of Texas where no electric competition exists.
If you live in such a region, you should contact your cooperative or utility directly
with queries related to the sale of DRG power. Prior to installing DRG, you should
obtain an interconnection agreement from your utility where the terms are
If you are not served by a cooperative or municipal utility, PUC rules require the utility to
buy DRG power that’s put on the grid at a rate equal to its "avoided cost". As per
§25.242(c)(1), "avoided cost" refer to the incremental costs to an electric utility of electric
energy, which, but for the purchase from the qualifying facility or qualifying facilities, such
utility would generate itself or purchase from another source.
Usually, once a consumer decides to participate in the program of selling excess renewable
power, it shall be binding upon the heirs, personal representatives, successors and
assignees of him/her. However, the consumer’s participation in the program shall not
produce, or be construed as producing, any express or implied rights or benefits in any
entity or person other than the concerned parties.
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