Analysis of the Impact of the Level of Self-Consumption of Electricity from a Prosumer Photovoltaic Installation on Its Profitability under Different Energy Billing Scenarios in Poland

Renewable Energy Sources (RES) have been gaining popularity on a continuous basis and the current global political situation is only accelerating energy transformation in many countries. Objectives related to environmental protection and use of RES set by different countries all over the world as well as the European Union (EU) are becoming priorities. In Poland, after years of a boom in photovoltaic (PV) installations, the Renewable Energy Sources Act has been amended, resulting in a change to the billing system for electricity produced by individual prosumers. The change in the billing method, also in pursuance to the provisions of EU laws, has contributed to the inhibition of the PV installation market for fear of energy prices and investment payback time. In this paper, by using the Net Present Value (NPV) method, three mechanisms of billing of electricity from prosumer micro-installations-based on the net-metering principle and net-billing principle (using monthly and hourly prices)-have been analysed. Particular attention has also been paid to the aspects of electricity self-consumption and energy storages, which play a significant role in the economy of PV installations in the net-billing system.

Automated summary

Renewable Energy Sources (RES) are gaining popularity worldwide and the current global political situation is further expediting the energy transformation processes. Environmental protection and RES utilization have become top priorities for countries and the European Union (EU). In Poland, amendments to the Renewable Energy Sources Act have slowed down the photovoltaic (PV) installation market due to changes in the billing system for electricity produced by individual prosumers, which was influenced by EU regulations. This paper analyzes three billing mechanisms for prosumer micro-installations using the Net Present Value (NPV) method, specifically focusing on net-metering and net-billing principles with monthly and hourly prices, and discussing the roles of electricity self-consumption and energy storages in the net-billing system's economic efficiency.