The Net Billing Program
The Net Billing program, scheduled to be implemented in the Fall of 2024 with the aim of replacing the already well-known Net Metering system, is designed to offer many benefits to photovoltaic system installers. On this page, we will further examine its key features.
What is Net Billing and Who Can Apply It?
Net Billing, (along with Virtual Net Billing), is the most advanced way of using photovoltaics for anyone wishing to harness the benefits of renewable solar energy, whether they are individuals, businesses, farmers, or members of an energy community.
With the new ministerial decision expected to be ratified in 2024, photovoltaic investors will gain the following advantages:
- The benefit of real-time netting, i.e., not having to purchase electricity from the HEDNO (Hellenic Electricity Distribution Network Operator) during the hours when the energy needs of the devices are covered exclusively by the energy produced by the photovoltaics or already stored in the batteries.
- The ability to sell the surplus electricity produced every hour by the photovoltaics, which at that time was not entirely consumed by the installation (house, factory, or agricultural product processing unit).
How Net Billing Works
Net Billing operates as follows:
- The energy produced by the photovoltaics every hour (in kWh) is measured in real-time to cover the installation’s electricity needs 100%.
- When these needs are met and there is excess energy, it is sold directly to the grid in real-time, creating hourly revenue for the investor.
- During hours when needs are not entirely met by the photovoltaics and the battery, the remaining hourly energy demand is purchased directly from the grid.
At the end of the month, the investor receives a bill listing the total revenue from the sale of electricity to the grid for each hour of surplus production, as well as a settlement bill for the energy purchase charges during the hours when production did not meet the needs. The final cash flow results from the netting of these bills.
Net Billing and Utilizing Excess Energy Production
With Net Billing, the greater the production capacity, the larger the surplus energy that can be immediately sold to the grid. This can lead to a significant increase in the consumer’s account revenue. The revenue from selling the excess energy fed into the grid is not taxed.
Net Billing and the Upper Limit on Installed Capacity in kW
Under the Net Billing system, businesses can now install photovoltaic systems without an upper power limit, with the percentage of surplus energy sold exceeding the previous 20% limit. The only limit is technical and is determined by the existing infrastructure of the installation’s cables, based on the corresponding agreed supply capacity with HENDO in kVA. For residential photovoltaics, the upper limit of installed capacity is set at 10.8 kW.
Electricity Sale Price in Net Billing
The sale price in Net Billing is determined by the Hellenic Energy Market and will vary hourly. For residential consumers, the price will be automatically regulated by DAPEEP, which will represent them free of charge. Businesses and energy communities will sell the surplus energy through an Aggregator (FoSE), with some service fee charges.
Net Billing and Regulated Charges
Within the Net Billing framework, photovoltaic investors will be charged network usage fees only for the amount of energy they purchase from the grid during the hours when their production as well as the stored electricity of their battery do not fully cover their consumption. When there is a surplus in hourly production, the energy fed into the grid is not charged with network fees but instead generates revenue for the investor, depending on the sale price.
Virtual Net Billing
Virtual Net Billing allows users to take advantage of a photovoltaic station located remotely from their installation, even in a different regional unit. The production station is singular, but the consumption installations can be more than one, provided that at least one of them is located remotely from the production station, and all services are under the same user’s account.
Specifically:
- During hours when total consumption is less than production, the user is not charged for the energy entering their installations from the grid. Instead, the surplus produced energy is sold directly to the grid, generating revenue for the user.
- During hours when the photovoltaic station does not produce enough energy, the user is charged for the difference in energy absorbed from the grid through a separate invoice.
The installed capacity of the photovoltaic production station in Virtual Net Billing can reach up to 200% of the total installed capacity of the consumption units that offset it.
A business can benefit from a production station located in a remote area through Virtual Net Billing, whether it operates independently or participates in an Energy Community.
A homeowner can utilize a remote geographical plot to synchronize the energy consumption of their house.
Net Billing and Apartment Buildings
Net Billing allows the installation of a photovoltaic station on the roof of a property, with the shared exploitation potential for more than two self-consumers. Otherwise, if an owner wishes to install a photovoltaic station on the roof of an apartment building for personal use, they will need the consent of 51% of the co-owners instead of the 100% previously required.
Subsidy and Battery in Net Billing
From a financial perspective, purchasing electricity from the grid is more expensive compared to the selling price of the produced kWh. In this case, it is more economically beneficial for the consumer to use the surplus produced electricity to charge the battery first and then proceed to sell it to the grid. This way, the rate of synchronization increases, and the inevitable cost of purchasing electricity from the grid during hours of insufficient sunlight is reduced.
Battery subsidy programs are expected for Net Billing, similar to Net Metering. Detailed implementation specifics are scheduled to be announced Autumn in 2024.
Contact Us
Interested in learning more about Net Billing and how it can benefit your home or your business? Contact us today for a free, no-obligation assessment! Our team of experienced solar energy specialists will help you understand your options, design a system that meets your needs, and ensure you receive the maximum benefits from your investment.
We offer individual consultations via phone, Zoom calls, or email to answer all your questions.
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Phone:(+30) 2316 026 622,
Fax: (+30) 2310 501 804
