How is surplus electricity generated by photovoltaic systems?
Photovoltaic panels capture solar energy and convert it into electricity. Such a PV system also enables the generation of surplus electricity. Depending on the needs and size of the household or business for which they are intended, the number of panels – and therefore the amount of electricity generated – will vary. Surplus energy can be sold back to the grid or used later.
Who can sell electricity from photovoltaic systems?
The sale of surplus photovoltaic energy – that is, energy which we are unable to use for our own needs – can be carried out both by an individual who uses the energy produced by their own PV installation for their own household purposes, as well as by a business or farm with a PV system. PV installations are divided into:
- Micro–installations – systems with a capacity of less than 50 kW, connected to the electricity grid with a rated voltage of less than 110 kV or with a combined thermal output of no more than 150 kW, in which the total installed electrical capacity is no greater than 50 kW.
- Small installations – photovoltaic systems with a capacity of 50 kW–1 MW, connected to the electricity grid with a rated voltage of less than 110 kV or with a combined heat output of more than 150 kW and less than 3 MW, where the total installed electrical capacity is greater than 50 kW and not greater than 1 MW.
- Large photovoltaic power plants – photovoltaic systems with a capacity exceeding 1 MW.
Settlement of surplus energy from photovoltaics:
Settlement of surplus energy produced by prosumers, farmers or businesses can take place in several ways depending on the status of the entity and the size of the installation. In the case of prosumers, as a general rule, we can speak of settlement under a volumetric (net-metering) or value-based (net-billing) system. However, net-metering applies to users who installed photovoltaic panels before April 2022. This method involves, in a sense, depositing surplus electricity in the form of kWh with the energy company to which the PV system is connected; from this, approximately 70–80 per cent of the energy can then be recovered, with the remainder deducted in favour of that company.
Net-billing, on the other hand, is a form of selling surplus energy generated from photovoltaics based on exchange-determined prices; consequently, these prices are the same regardless of the energy supplier and may fluctuate dynamically. Electricity is sold on an ongoing basis at the current market price. The proceeds from the sale are deposited into a special individual user account. If the demand for electricity subsequently proves to be higher (for example, due to the winter season), the user can repurchase energy at the prices prevailing on the day of purchase, using the funds from this dedicated account.
A prosumer, as defined in the Renewable Energy Sources Act, is an end-user who generates electricity exclusively from renewable energy sources for their own use in a micro-installation, provided that, in the case of an end-user who is not a domestic electricity consumer, this does not constitute the main part of their business activity. Generally speaking, this is a person who consumes and generates electricity. It is worth noting that from July 2024, an amendment to the Renewable Energy Sources Act will come into force, whereby virtual prosumers of renewable energy will also join the group of prosumers. Such an entity will be entitled to benefit from energy produced in photovoltaic systems by acquiring rights to a portion of the energy generated by a PV installation located outside their place of residence. This will enable, for example, residents of blocks of flats or terraced houses to use and draw electricity from photovoltaic systems.
Other forms of selling electricity from photovoltaic systems
Other forms of selling surplus electricity from photovoltaic systems also include the option of using an auction system, the purchase of energy by an obligated supplier, or selling to the market via PPAs.
However, it is not only prosumers who have the opportunity to sell energy generated by PV installations. This entitlement also applies to businesses and farms.
Entities that are interested and meet the statutory and regulatory requirements may participate in the auction system by submitting a bid to the President of the Energy Regulatory Office. Winning the auction means receiving a fixed amount for the surplus energy produced for a period not exceeding 15 years; however, it should be borne in mind that it is necessary to supply a specified amount of the declared energy, and its production must commence within a specified period from the closing of the auction. An Settlement Administrator has also been appointed, whose task is to settle price differences so as to maintain stability in the revenue received by the winning entity.
Micro and small installations may sell their surplus electricity to a designated supplier. The supplier’s objective and obligation is to purchase surplus energy in order to prevent a market stagnation.
Another solution could be a PPA (Power Purchase Agreement), i.e. a civil law contract for the sale of surplus energy by the producer, concluded between the producer of energy from a renewable energy installation and the energy purchaser. As a rule, it is concluded for a longer period and should set out the key terms of cooperation between the parties, enabling both sides to fulfil their obligations without difficulty, such as the quantity of energy sold, rates and delivery dates.
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