If your installed solar system generates excess energy than required for your consumption, the surplus is fed into the grid. This surplus is paid for by the electricity companies and is called the feed-in tariff and is applicable to homeowners as well as commercial establishments. The government establishes the amount based on each Kilo Watt per hour (kWh) a homeowner’s solar system feeds back into the electricity grid and the amount varies according to the energy provider and the state. This tariff is calculated using net metering.
Through net metering, the owner receives an amount equivalent to the difference between the owner’s usage and the solar electricity produced.
Small-scale technology certificates
Installing an eligible solar or electric heat pump water heater entitles you to small-scale technology certificates (STCs), which can be sold to registered agents or traded individually.
Each STC represents an amount of renewable energy generated, so the more renewable energy your solar system can produce, the more STCs you will get.
You can either receive a point of sale discount by assigning your STCs to the retailer or installer when you buy your solar PV system, or register your STCs and sell them through the STC market or STC clearing house yourself. The dollar value of the STC offered by retailers and installers varies day to day. If you choose to trade your STCs yourself through the STC clearing house the price is fixed at $40 per certificate.
For more information specific to your state and requirements, check out the following links,