25 FEB 2020

March 1st: compensation for surplus energy will become a reality

Compensation for Surplus Energy

Compensation for surplus energy generated by solar systems will go into effect in March of 2020.

According to data from the Spanish Photovoltaic Union (UNEF) – Unión Española Fotovoltaica, 459MW of new power capability has been installed, nearly doubling results from 2018: 235MW. Much of this is due to Royal Decree 244/2019 going into effect, which regulates administrative, technical and economic conditions for the self-generation of electric power.

There are different modes of solar energy self-generation: solar energy generation without net metering and solar energy generation with net metering.

Solar Energy Generation Without Net Metering: These solar systems have an export limiter that prevents excess energy from being sent to the power grid. In other words, the energy produced by your solar panels that is not used by you will not be stored or exported to the grid.

Solar Energy Generation With Net Metering: Systems with net metering will export surplus energy to the power grid. Within this type of solar system, there are two important subcategories:

  • Net metering not open to simplified compensation: For solar systems that exceed 100kW, excess energy will be sold to the grid, under the same regulations as any power plant, and will not be open to the simplified compensation mechanism.
  • Net metering open  to simplified compensation: This subcategory only includes homes or businesses whose power output is less than 100kW. Your electric company will compensate you on your power bill for the excess energy you exported to the grid.

Royal Decree 244/2019, mentioned before, incorporates a simplified compensation mechanism for surplus energy. This new mechanism will apply to self-generation (for power outputs less than 100kW) as well as collective power generation.

Until now, if a consumer wanted to obtain compensation for the excess energy generated by their solar system, they had to legally register as a power producer, which was rife with expensive red tape and tedious tax statements. Thanks to the royal decree approved in April of last year, all this has changed, and this decree will go into effect on March 1st, 2020.

Starting this next month, if you have this kind of solar system, necessary administrative procedures will be nothing more than notifying your autonomous community that you have installed an electric power plant, and the power company will be responsible for compensating you for any energy in excess of your monthly bill.

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