NET-METERING AND SELF- CONSUMPTION SCHEMES IN EUROPE

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1 NET-METERING AND SELF- CONSUMPTION SCHEMES IN EUROPE Marie Latour Senior National Policy Advisor IEA-PVPS - EPIA WS - 30 September 2013

2 Content What is self-consumption? Self-consumption incentives and net-metering: how does it work? Overview of schemes in Europe Recommendations to enhance self consumption Page 2

3 1 What is self-consumption? Page 3

4 Self-consumption residential prosumer standard profile 4 3,5 PV Production Load 3 2,5 kwh 2 1,5 1 0,5 Self-consumption 0 Consumption Production Self-consumption

5 Residential: self-consumption rate potential in key EU markets (without storage) 39% 43% 41% 42% 39% 41% 41% 41% 40% 36% 31% 33% 29% 35% 35% 29% 31% AT BE CZ DE-North DE-South EL-North EL-South ES-North ES-South FR-North FR-South IT-North IT-South NL PT UK-North UK-South Page 5

35% 35% 29% 31% AT BE CZ DE-North DE-South EL-North EL-South ES-North

6 [1] Self-consumption and net-metering schemes in Europe Consumer profiles in the commercial segment 0,40 0,35 0,30 Standardloadprofile normalized on 1000kWh/year for different kinds of commercial industries for a summer workday Commercial Industry with highest load in the evening and night Commercial Industry with main load from on workdays 0,25 0,20 0,15 0,10 0,05 0,00 Standard load profile for different kind of commercial industries [h] Page 6

workday Commercial Industry with highest load in the evening and night Commercial Industry with main load from

7 Self-consumption and net-metering schemes in Europe Commercial Segment : self consumption potential rate for 2 profiles 50% 38% 53% 43% 51% 41% 51% 42% 51% 39% 46% 36% 42% 30% 43% 33% 39% 29% 46% 36% 44% 31% 45% 35% 44% 29% 45% 44% 41% 31% 45% 41% AT BE CZ DE-North DE-South EL-North EL-South ES-North ES-South FR-North FR-South IT-North IT-South NL PT UK-South Page 7

33% 39% 29% 46% 36% 44% 31% 45% 35% 44% 29% 45% 44% 41% 31% 45% 41% AT BE CZ DE-North

8 2 Net-Metering and Self-consumption schemes: How does it work? Page 8

9 SELF-CONSUMPTION SELF-SONSUMPTION INCENTIVES Main types of incentives: Direct: Self-consumption premium (former DE and IT schemes) Indirect: FiT or support is < retail electricity price (DE, IT) SELF-CONSUMPTION METER

(former DE and IT schemes) Indirect: FiT or support is

NET METERING NET-METERING / NET-BILLING Net-Metering Physical compensation of your PV production volume over your consumption volume during a set period of time (year/month/day/hour) (meter turns

10 NET METERING NET-METERING / NET-BILLING Net-Metering Physical compensation of your PV production volume over your consumption volume during a set period of time (year/month/day/hour) (meter turns backward) = resulting in a simple billing arrangement Incentive = savings on the electricity bill Net-Billing: Economical compensation of your PV electricity production value over your consumption value during a period of time

resulting in a simple billing arrangement Incentive = savings on the electricity bill Net-Billing:

11 3 Overview of schemes in Europe Page 11

OVERVIEW OF MAIN NET-METERING AND SELF-CONSUMPTION SCHEMES IN EUROPE NL: Yearly Net-metering < 3x80 A DK: Hourly Net-metering DE: Self-consumption encouraged with lower FiTs Market integration Model

12 OVERVIEW OF MAIN NET-METERING AND SELF-CONSUMPTION SCHEMES IN EUROPE NL: Yearly Net-metering < 3x80 A DK: Hourly Net-metering DE: Self-consumption encouraged with lower FiTs Market integration Model since Aug (<1000 kwp) UK: Self-consumption right + Export tariff (<30 kwp) BE: Yearly Net-metering (<10 kva) IT: Scambio Sul Posto ( net-billing) where compensation < electricty retail price (< 200 kwp) TR: Daily Net-metering (< 1 MWp) ES: Self-consumption allowed (<100 kw ) Page 12

2012 (<1000 kwp) UK: Self-consumption right + Export tariff (<30 kwp) BE: Yearly Net-metering (<10 kva) IT: Scambio Sul

13 Current state of net-metering and self-consumption schemes in Europe Germany: Self-consumption is a key driver of the 2013 market (95% of systems commissioned): Since 2012 no more self-co premium, Driver: retail electricty prices> FiT Discussion on financing of grid operators ongoing due to reduced revenues Italy: Self-co premium + fit ended in June Difficulty to restart market with current only scheme: scambio sul posto (net-billing scheme). However retail price > scambio sulposto support which is relatively attractive need public support to communicate on scheme UK: self-consumption is allowed + generation tariff + export premium = attractive scheme compared to Italy or Germany Belgium: net-metering provoking reactions from DSOs to get refinanced Flanders set fix grid fee linked to installed capacity to finance DSOs: unfair for existing systems; preventing further development Wallonia thinking of similar measure Netherlands: combined net-metering and grant driving maket. So far no issue with DSOs. Limit of max production for compensation (5000 kwh) removed Denmark: small scale yearly net-metering stopped in Nov 2012 due to loss of tax revenues for the government. Only hourly net-metering remaining, DSOs asking to get compensation for lost revenues Spain: Self-co was allowed in Nov however missing regulatory framework; recent proposal from government to get a back-up toll which will affect also self-consumed share of electricity Page 13

Difficulty to restart market with current only scheme: scambio sul posto (net-billing scheme).

14 What makes Self-consumption work Easy administrative scheme (administrative costs share in Italy = 10 x level of Germany) Energy-saving behaviour necessity for a change in mindsets Communication from public authorities Marketing strategy evolution from companies Long term savings expectations Awareness on raising electricity prices Attractive Financial support Investment repays over longer period than with FiTs Page 14

authorities Marketing strategy evolution from companies Long term savings expectations Awareness on

15 What about other European countries? FR On-going consultations on selfconsumption PT On-going discussions on netmetering/self-co CZ On-going discussions on net-metering SK On-going discussions on net-metering CH Self-consumption from GR On-going discussions on net-metering Page 15

netmetering/self-co CZ On-going discussions on net-metering SK On-going

16 4 Recommendations to enhance self consumption Page 16

17 Recommendations Lift all regulatory barriers to self consumption Give the right to self-consume. In many countries it is not the case yet, or simply not worth Phase out regulated electricity prices and other regulatory barriers Retail electricity prices should reflect actual electricity prices. Artificially low prices (e.g. Spain, Greece or France) prevents development of self-consumption or net-metering No exposure of self-consumed electricity to grid costs, adapt grid charges based on consumer profile/impact Spanish example with a back-up toll is the example of a wrong measure Flemish grid charge based on installed capacity do not reflect the consumer load profile Socialise network operation costs for electricity fed into system (as for other generators) and secure adequate remuneration Remuneration of grid operators is needed but it should be socialised among consumers French injection fee is not fair, cost should be socialised among consumers Support enablers, such as smart meters, smart prosumer storage and Demand Side Management German storage incentive is a first step Page 17

18 EPIA Position on Self-Consumption Download it on: Page 18

19 THANK YOU FOR YOUR ATTENTION For more information of further details contact Marie Latour European Photovoltaic Industry Association Renewable Energy House Rue d Arlon 63-67, 1040 Brussels - Belgium T +32 (0) F +32 (0) [email protected] -

org European Photovoltaic Industry Association Renewable Energy House Rue d

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