Have you ever wondered if it is possible to not just save money on your electric bill, but actually make money by generating electricity at home? The truth is that you can, but don't quit your job just yet. Even though it is possible, there are definitely some things you need to know about it.

• Upfront investment is high

The average family in the US uses almost 800 kilowatt hours (kWh) of electricity each month. Using the calculations proposed by the American Wind Energy Association (AWEA) it would require a wind turbine rated between 5 and 15 kW to generate that amount of power, depending on the wind conditions.

At the time of this writing, it would cost upwards of $20,000 for the complete installation of a commercial wind system at the low end of that range. How long it would take to even break even on the investment depends on the cost of electricity in your area. And solar tends to be even more expensive.

That is not to say that you shouldn't consider installing a wind or solar system. Government subsidies and incentives as well as rising energy costs make the pay back length shorter every day, which can justify building a system for your own use, but carefully consider the potential return on investment in trying to make money, especially considering the next point.

• You buy at retail but sell at wholesale

In many places local utilities are required to purchase electricity from micro-generator plants, the definition of which varies from one place to another, but you are generally included if your system is rated 50 kW or less, going as high as 80 kW. However, the utility companies do not buy electricity at the same rate you do in your home.

While again this may seem to sound discouraging to anyone thinking of installing a grid connected system, in many places the utility will allow "net metering," which is where your meter essentially turns backwards when you have excess generation and it is being sent into the grid. This allows homeowners to reduce their monthly bill with a smaller and less expensive generation system.

• If you truly have the space and conditions, consider leasing out

Setting up a system to make money with home made renewable energy would require a lot of space for either wind turbines or solar panels, and as mentioned above it would require a large, up-front investment which would take years to be paid off.

There is another option, however, and probably the most viable for anyone who wants to make money from electricity generation, and that would be to lease your land out to a wind generation company. This is becoming more popular as more wind farms spring up, and most communities seem to welcome them.