Industrial Power: Selling Excess Power to a Utility Provider

It’s a scenario that many armchair engineers and professional engineers would like to accomplish: producing excess electricity they can sell to the utility provider ― the entity that oversees the operation and regulation of the electrical grid. Depending on how much excess energy is produced, the operation could become highly lucrative for a business, an organization, or a private individual.

What Excess Energy Means

Within the context of selling excess electricity to the utility provider, excess electricity is similar to the philosophical concept of “absolute wealth”. Absolute wealth is money leftover after all of our needs are met (emphasis on “needs”). Excess electricity is the amount of electricity leftover after all of your facility’s electrical power needs are met. A point of clarification: Only after meeting the your facility’s industrial power needs do you sell electricity to the utility provider.

How to Produce Excess Energy

Excess energy can be produced in various ways. In the U.S., Solar panels, which have become significantly more efficient over the past decade, are the most common way to generate excess electricity. However, because solar panels produce direct current (DC) electricity, you’ll need to invest in a grid tie inverter, which changes DC to alternating current (AC) before you start feeding the electricity ― which you don’t require for industrial power ― into the grid.

There are also other ways to produce excess electricity, including: custom generators that produce electricity from wood gas, yield electricity from combusting waste cooking oil, and even produce electricity from combusting dry leaves. In most cases, these methods are pursued by individuals who have a good technical knowledge of their application, and enjoy tinkering with it.

Value of Selling Excess Energy

The value of selling excess electricity depends on two factors: how much extra electricity you produce, and the kilowatt per hour rate for the electricity you sell, in the state in which you sell it. Most organizations and individuals sell a small amount of electricity. The primary aim of the installation that produces extra electricity is to partially or fully power a facility.

However, selling lots of electricity is also a tactic you could pursue, if you have the investment capital for the right equipment. Before you devise such a plan, it’s wise to consult an industrial engineer who understands the electricity grid and the utility provider’s rules and regulations for acquiring excess electricity. Doing so will help you understand how much you can earn.

Need More Information?

For more information about selling excess industrial power to a utility provider ― and the equipment you need to do it ― contact Exeltech today at (800) 886-4683, or use our contact form. We look forward to helping you make the most of excess electricity you produce.