Prosumer
A portmanteau of "producer" and "consumer" — a household or business that both produces and consumes electricity, typically through rooftop solar.
Why It Matters
The prosumer model is reshaping utility-customer relationships. As more homes generate their own electricity, the traditional utility business model is evolving to accommodate two-way energy flows.
Related Terms
Net Metering
A billing mechanism that credits solar energy system owners for the electricity they add to the grid. The excess power generated during the day offsets power consumed at night.
Distributed Energy Resource (DER)
Any small-scale energy generation or storage connected at the distribution level rather than the transmission level. Includes rooftop solar, home batteries, EVs, and demand response.
Self-Consumption
The percentage of solar electricity that is consumed on-site by the household rather than exported to the grid. Without a battery: typically 25-40%. With a battery: 60-90%.