self consumption

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

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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.

New energy self-consumption framework within 1Q of ‘24

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The country’s updated regulatory framework covering energy self-consumption has been included in REPowerEU revisions made by the energy ministry and will be activated by the issuance of a related ministerial decision expected within the first quarter of 2024.

The energy ministry will seek to have the ministerial decision issued before March, energypress sources informed.

The series of energy self-consumption revisions include a 100-KW net metering limit, from 3 MW, for large-scale enterprises.

In the lead-up, distribution network operator DEDDIE/HEDNO stopped accepting grid connection applications for net-metering PVs with capacities of over 100 KW.

As a result, companies needing to install higher-capacity RES systems must wait for the launch of net-billing as a solution. It promises real-time self-generation along with the sale of surplus energy.

The new self-production framework will also enable companies not possessing free space for PV installations to utilize solar energy through virtual net-billing solutions, or offsite PVs situated in other regions.

 

Revised framework covering self-consumption next month

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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.