Microgeneration / Distributed generation / Feed in / Net metering
A large amount of energy is lost via transmission from its source to its
destination. When coal is burned to generate electricity for a light
bulb in a house, 97% of the energy in the coal is wasted.
Photovoltaic systems can be set up at the location where the energy is
to be used and therefore little energy is lost in transmission. This is
called ‘microgeneration’ or ‘distributed generation’ and is a huge
advantage for solar energy systems.
Another advantage is the use of ‘feed in’ or ‘net metering’. This
enables households that have PV systems to plug into the electricity
grid and sell their electricity to the grid when they have a surplus.
For example, if the weather is relatively cool but very sunny (ideal for
solar energy to be produced), a household may have more energy than they
required and can redirect it to an energy supplier.
 Some countries have regulations to encourage this. For example, in
Germany the ‘feed in’ laws allow households with solar panels to be paid
about $US 0.55 per kilowatt hour for their electricity. In addition to
households, this also helps utility companies because energy demand
often outpaces supply.
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