A smart grid allows for resources which are renewable but not unlimited to be used more efficiently. The common misconception that people have about wind, water, and solar energy is that because they come from nature the supply is never ending. However, that is not always the reality, at least not in an energy demand sense. Without a clear method of storing these energy sources, they will more than likely go to waste. A solar panel captures energy from the sun during the day when most people really do not need as much electricity. Wind energy is most common and most prevalent at night, again when most people do not need as much. Traditional electrical energy comes into our homes from the outside wires, leading to a bill being generated whether any of it is ever used or not. A smart grid would allow a user to only be billed for actual energy consumption and would show how much energy is being used and where.
A smart grid can adapt and switch to alternating power sources as needed. This eliminates worry about whether or not the energy will be there or that it will be costing more than it should. Current utility set ups place everyone at the mercy of the companies that provide the energy – you either pay what they demand or you are out in the darkness. With a smart grid, the energy sources could be mostly self-generated with the utility company being the last resort for power.
A smart grid user could also utilize the extra power that they are creating with their set up to get credits from the utilities by selling the excess back to them. If you generate enough solar power to run your entire household for the day with some left over, you could then sell the excess back to the utility company. This would show up at the end of the month (or the year) as a credit toward your account. If you do this often enough, the amount that you receive will more than offset your bill, eventually you will accrue more generated energy than what you are using.
Smart grids are smart not only for those who generate or use alternate energy sources, but also because it effectively teaches about actual energy consumption and often, wastes. If it is possible to see exactly how much energy is being wasted by looking at a detailed bill, it is easier to find ways to eliminate that waste.
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