net billing

Roof-mounted PV applications surge, subsidy program ending

Posted on by admin

The premature termination of the PV Stegi subsidy program for roof-mounted solar panel installations, set to end on May 15, instead of June 30, as was officially announced earlier this week, has led to a surge in applications, numbering over 200 per day, energypress sources have informed.

The ministry is ending its PV Stegi subsidy program ahead of schedule as it is tied to a net-metering compensation system for self production that has been disapproved by the European Commission, now endorsing a net-billing system.

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.

Under the new regulations, to apply beyond May 15, households installing solar panels for self-production will be compensated through a net-billing system.

At present, 22,000 net-metering applications – 12,000 through the PV Stegi subsidy program and 10,000 without subsidies – still need to be processed at distribution network operator DEDDIE/HEDNO for connections to the grid, sources told energypress.

Market players have been critical of the energy ministry’s handling of the matter, as highlighted recently by SEF, the Hellenic Association of Photovoltaic Companies, which described the ministry’s change of course as an unnecessary market disturbance.

Though market officials appear to agree on the switch to net billing, they have stressed the need for a more organized approach so that a prolonged shock to the market, which could last months, may be avoided. A number of companies have invested heavily in the roof-mounted PVs sector, officials have underlined.

 

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

Posted on by admin

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.

Net-metering until June for residential roof-mounted PVs

Posted on by admin

The energy ministry will phase out net-metering applications for different categories of consumers over various stages as part of a procedure replacing these with net billing, an accordance with new European Commission policy on the matter.

Remuneration programs concerning net-metering systems will be abolished upon their expiry dates, top-ranked energy ministry officials have informed.

New subsidy programs not yet launched will premier exclusively based on the net-billing model, the sources added. These include a subsidy support program for residential roof-mounted PVs, currently in progress with applications facing a June 30 deadline.

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.

 

 

Net-billing seen replacing net-metering following EC reaction

Posted on by admin

The energy ministry is believed to be considering to abolish net-metering for self-production and replace it with a net-billing formula following objections raised by the European Commission, promoting the latter approach as most appropriate for self-consumption.

Greece’s ongoing PV support program subsidizes further penetration of net-metering systems in the domestic sector.

The energy ministry, currently examining market details in order to decide on how to react to the Commission’s criticism of the country’s support plan, is likely to abolish net-metering imminently and instead extend net-billing to domestic self-consumption systems with a production capacity of up to 10 KW, as well as commercial and agricultural PVs with capacities of up to 100 KW.

Should this direction be taken, the ongoing PV Stegi support program for roof-mounted PVs will soon be discontinued, March 31 believed to be a date under consideration. It would be followed by the announcement of a corresponding support program based on a net-billing formula.

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.

Brussels has taken the side of protesting suppliers, including in Greece, as, under the net-metering formula, energy offsetting is essentially being conducted at their expense given that excess generation is injected into the grid at nighttime hours of low wholesale prices, well below higher energy prices in the evening hours, when customers meet most their energy needs.

Revised framework covering self-consumption next month

Posted on by admin

A revised institutional framework covering RES self-consumption is set to be implemented in September, once a related ministerial decision is signed as a necessary step in order to activate ratified law covering the matter.

Changes will include a significant net-metering cap increase for businesses, to be adjusted to 100 kilowatts from 3 megawatts. A 100-KW net-metering cap will also be applied to the farming category.

A 10-KW net-metering cap for residential self-consumption will remain unchanged under the revised framework. Also, virtual net-metering will remain available through the establishment of energy communities.

Central to the forthcoming modifications will be the promotion of net-billing for larger commercial systems.

Net billing operates by effectively utilizing the grid as a virtual battery, instantly offsetting the value of the generated and consumed energy. In contrast, net metering involves the balancing of grid injection and consumption quantities.

Companies finding a 100-KW net-metering cap to be insufficient will be offered net-billing as as a solution. No upper capacity limit will apply for net billing.