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I was under the impression that when they said "This is a fraction of the amount I put back into the grid", it implied that they are generating their own electricity to use for this, most likely from solar panels.

This is an assumption though, they could be running a large diesel generator for all we know.



Yes, what you are impling is correct. Forgot to mention that we have a 8kw solar system on our roof.

I updated my comment.




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