Net-metering, roof-mounted PV subsidies ending early May

The energy ministry plans to place energy RES self-consumption under a net-billing framework through a forthcoming bill that will include an amendment abolishing net-metering and prematurely ending “PV Stegi”, a subsidy program for roof-mounted solar panel installations, sources have informed.

The legislative revision, sources added, is expected to be ratified around late April, meaning that net-metering will be abolished by early May, along with the “PV Stegi” subsidy program that had been planned to accept applications until June 30.

Market players, including SEF, the Hellenic Association of Photovoltaic Companies, have already expressed concerns about this prospect, warning it would severely impact growth in the sector.

The ministry’s approach, sources noted, is based on objections raised in the past by the European Commission concerning net-metering as well as its resulting increased cost for energy suppliers.

Brussels considers net-billing to be the most appropriate formula for self-consumption. The European Commission has raised objections against “PV Stegi” subsidy program for roof-mounted solar panels, noting the program has been  subsidizing a spread of net-metering in the household sector.

Under the new rules, farmers will be an exception as both net-metering and net-billing systems will continue to apply for small-scale solar systems inducted into a forthcoming “PVs on farmland” subsidy program supporting PV installations by farmers seeking to meet their energy needs through self-production.

PV systems with a capacity of up to 30 KW will be regulated under a net-metering system, while photovoltaic systems with capacities ranging from 31 to 50 KW will be regulated under the net-billing system, energypress sources informed.

Both net-metering and net-billing compensate solar-system owners for transferring electricity to the grid when their panels overproduce, but the ways the two systems compensate differs.

Net metering credits equal the retail electricity rate paid by customers for electricity. On the contrary, net billing credits equal the wholesale rate electricity companies pay for electricity.