The Ministry of Infrastructure and Environment is working on changing the net-billing system, i.e. billing prosumers who produce electricity not only from photovoltaics, but also from windmills. The Ministry of Environmental Protection emphasized that there is and will not be a return to the old rules, i.e. quantitative settlement of net-metering.
- As we know, from April 1, 2022, a new prosumer settlement system (net-billing) was introduced, which replaced a more favorable and predictable system based on the so-called holidays.
- Changing the rules for accounting for the production of electricity from renewable energy sources is unfavorable for at least three reasons.
- What three problems did the introduction of the net-billing system cause that affect the profitability of home photovoltaics? Check below.
- The RES department is working on what we can do to improve the settlement situation of prosumers. Ultimately, this is to improve the profitability of prosumer installations.
EU legislation has changed and it is certainly not possible to return to the old rules (net-metering).
As we know, from April 1, 2022, a new prosumer settlement system (net-billing) was introduced, which replaced a more favorable and predictable system based on the so-called holidays. Unfortunately, unfavorable conditions for settling home photovoltaics have hampered the development of this renewable energy sector.
Changing the rules for accounting for the production of electricity from renewable energy sources is unfavorable for at least three reasons. What are three problems caused by the introduction of the net-billing system that affect the profitability of home photovoltaics?
Unpredictability of electricity prices from photovoltaics in the net-billing system
Firstly, owners of photovoltaic installations are informed with a monthly delay of the price per 1 kWh of energy produced, which is settled in the net-billing system. Moreover, RcEm prices are unpredictable for prosumers.
It would seem that in the winter, when there is an increased demand for electricity, the RcEm price should increase, but in December 2023 it reached slightly over PLN 0.30/kWh (PLN 304.63/MWh). All experts explain the decline in RcEm prices because wind installations produce cheap electricity from renewable energy sources.
The predictability of the RcEM price, i.e. the price of 1 kWh of energy produced from a photovoltaic installation, would allow the photovoltaic owner to better plan and determine at what level he should maintain his autoconsumption – whether it is profitable for him to save more energy, in the form of money ending up in his prosumer deposit.
The more funds he saves in the prosumer deposit, the more he can spend these funds, e.g. on energy consumption, e.g. in winter, especially when he heats the house, e.g. with a heat pump. The low price of RcEm tells him that he will have problems paying electricity bills during the period when he does not produce electricity from photovoltaics and consumes more energy.
Let us also remember that from July 2024, hourly billing of energy produced from photovoltaics will be introduced. The price for the delivered electricity will change every hour, which further makes the system less predictable for prosumers
However, observing energy prices in hourly rates that are already in force on the private market, we can conclude that hourly energy prices will most likely increase from 4 p.m. and will reach their apogee at approximately 18-21, when there will be an increased demand for energy in all households.
A prosumer settling in the net-billing system can also store excess energy in an energy warehouse in order to consume it or resell it, e.g. when it costs more. However, the purchase of energy storage is also a significant expense despite the subsidies introduced.
RcEm energy prices for settling electricity from photovoltaics are too low
In January 2024, the price was PLN 437.02/mWh, i.e. approx. PLN 0.43/kWh. The increase in the RcEM price was approximately PLN 13 per 1 kWh from December 2023 to January 2024. However, remember that it will be further adjusted and the RcEm price may be reduced.
Experts say that the prices of energy from renewable energy sources will fall as the number of photovoltaic and wind farms increases, which is not good news for owners of home photovoltaics who use electricity from renewable energy sources mainly for their own needs. Typically, electricity from photovoltaics powers heat pumps, which consume electricity in winter.
The drop in RcEM prices results in less funds being transferred to the prosumer’s account (prosumer deposit). The homeowner (prosumer) is exposed to higher electricity bills because less funds accumulated in the deposit are unable to cover energy consumption from the heat pump, water heating, lighting, etc. in the winter.
Everyone postulates that minimum hourly RcEM price rates should be introduced, e.g. PLN 60-90/kWh or higher, which will guarantee greater financial stability and predictability for prosumers producing energy from photovoltaics.
Photovoltaic owners cannot freely use the funds from the deposit in the net-billing system
Unfortunately, the net-billing system also introduces a number of restrictions on the owner of the photovoltaic installation, which do not allow him to freely dispose of his finances collected in the prosumer deposit.
When the production of energy from photovoltaics does not meet the demand, we have to buy electricity from the power grid. For this purpose, first of all, the funds in the prosumer deposit are used. The transaction takes place at the seller’s current rates. And here the owner has no choice.
And what happens to the excess energy produced, sold and stored in the prosumer deposit?
If you do not use the accumulated funds within 12 months, you can capitalize them, i.e. transfer them to your bank account. However, not the entire amount, but a maximum of 20% of the surplus accumulated in the prosumer deposit – emphasize Tauron experts.
Unfortunately, the rest of the accumulated funds are lost from the deposit and are not transferred to the next billing period… In short, the owner of these funds, the prosumer, cannot freely dispose of the money he earned on the energy produced from photovoltaics.
Imagine that you deposit surplus funds in the bank and at the end of the year you receive information that you can withdraw only part of these funds and the rest is lost… Unpredictability means that you do not know whether you should accumulate more on this deposit or not. And this is how scandalously the net-billing system works in settling prosumers
Therefore, there must be changes, as confirmed by the Ministry of Culture and National Heritage.
MKiŚ confirms changes in the net-billing system, but there will be no return to net-metering
Minister of Climate and Environment, Hennig-Kloska, asked by PAP whether the Ministry of Climate and Environment anticipates changes in the prosumer settlement system. She replied yes, yes. However, she confirmed that there is no return to the old rules of net-metering
Yes, the Renewable Energy Department is working on what we can do to improve the settlement situation of prosumers. Ultimately, this is to improve the profitability of prosumer installations. EU legislation has changed and a return to the old rules (net-metering) is certainly not possible, said Minister Hennig-Kloska.
Minister Hennig-Kloska also announced the creation of a program promoting the use of home energy storage facilities where prosumer energy is developing and operating. However, she did not reveal the details of this program.
.Energy storage is very expensive, and the existing subsidies have not been a sufficient incentive to install them. We will want to create an additional incentive and we are working on it, said the minister.
