Patent ID: 7460931

Claim:
A method for increasing efficiency and conserving energy in a power grid comprising steps of: selecting an electrical energy provider offering electrical energy for sale through the power grid at a plurality of rates including at least a first rate for residential service and a generally lower second rate for commercial service; selecting a residential facility being provided with electrical energy by the electrical energy provider, the residential facility including a plurality of separate dwelling units and having an electrical service wherein each dwelling unit has a separate electric meter for metering the electrical energy delivered to the unit, the metered electrical energy being charged by the electrical energy provider to a plurality of separate ratepayers at the first rate, each of the ratepayers associated with a separate one of the dwelling units; collecting electrical energy usage and demand data by monitoring electrical energy usage and demand for each separate dwelling unit; determining a peak demand for the residential facility using the collected electrical energy usage and demand data; altering the electrical service of the residential facility by installing a master electric meter for the residential facility while maintaining separate electric meters for each of the separate dwelling units, the master electric meter being connected so as to meter all electrical energy metered by the separate electric meters of the dwelling units, the electrical energy metered by the master electric meter being charged by the electrical energy provider to a third party at the second rate, generating a first stream of arbitrage revenue to the third party by charging the electrical energy metered by the separate electrical meters of the units to the plurality of separate ratepayers at a third rate higher than the second rate; using at least a portion of the first stream of arbitrage revenue to provide a generator system including a generator and a transfer switch, the generator having a peak capacity larger than the peak demand for the residential facility; and connecting the generator to the residential facility and the power grid through the transfer switch so that the transfer switch is selectively switchable to select among a first mode wherein the generator is uncoupled from the residential facility and the power grid, a second mode wherein the generator is coupled to the residential facility and is not coupled to the power grid, and a third mode wherein the generator is coupled to the power grid and the residential facility.