e. Selling electricity to the grid
Due to the variable nature of renewable electricity generation, a prosumer will in most cases be unable to exactly balance his internal supply and demand. In the case of a supply surplus, the prosumer can feed his electricity back to the grid.
Usually, the prosumer is compensated for selling his electricity to the grid. A traditional way of remunerating the prosumer is through feed-in tariffs, but this method has proven expensive to maintain as the cost of electricity from renewable sources has fallen. Another possibility is to use net metering, where a participant’s electricity meter turns backwards if electricity is fed back into the grid. Today, the adequate remuneration is usually determined in a more market-based way, based on the price on the wholesale markets, in a similar manner to the way the utility price is determined.
The sale of electricity back to the grid requires a two-way electricity connection, so that the electricity can flow back to the grid. In addition, utilities might not be keen on this type of interaction, as it complicates the central balancing and control of the electricity grid. These concerns make the sale of electricity to the grid less accessible than other forms of prosumer engagement.