Distributed energy refers to electrical or thermal energy that is generated by a specific entity and sold or exported outside of that entity's boundaries for use by another party. This energy can come from various sources, including renewable energy systems like solar panels or wind turbines, and is typically produced close to where it will be used, rather than at a centralized power plant.
The term distributed energy is commonly used in energy law and regulation, particularly in the context of renewable energy initiatives and grid management. Legal frameworks may involve contracts for energy sales, compliance with environmental regulations, and local zoning laws. Users may find it beneficial to utilize legal templates from US Legal Forms to navigate agreements or regulatory requirements related to distributed energy.
Here are a couple of examples of abatement:
Example 1: A homeowner installs solar panels on their roof and sells excess electricity back to the local utility company. This energy is considered distributed energy because it is generated on-site and exported for use elsewhere.
Example 2: A small wind farm produces energy that is sold to neighboring businesses, qualifying as distributed energy due to its localized generation and sale. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Regulatory Framework |
|---|---|
| California | Strong incentives for solar and wind energy generation. |
| Texas | Less regulation, promoting a free market for energy sales. |
| New York | Robust programs supporting distributed generation and net metering. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Distributed Energy | Energy generated locally and sold or exported. | Focuses on local generation and sale. |
| Centralized Energy | Energy generated at large facilities and distributed widely. | Generated far from the point of use. |
| Renewable Energy | Energy from renewable sources like wind and solar. | Can be distributed or centralized. |
If you are considering generating and selling distributed energy, start by researching local regulations and compliance requirements. You may want to consult with a legal professional to ensure all legal obligations are met. Additionally, US Legal Forms offers templates that can help you draft necessary agreements or contracts.
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Distributed energy is electrical or thermal energy generated locally and sold or exported to other entities.