The government is constantly encouraging investments in home photovoltaic installations. The fifth edition of the Mój Prąd subsidy program has been underway since April this year. As statistics show, the new version of the project is enjoying considerable interest. In the first 2 months alone, over 24,000 applications were submitted for a total amount of PLN 212 million. Until recently, no one questioned the profitability of investing in photovoltaics. Today, more and more negative voices are being heard. Negative energy prices and a new method of settling prosumers' accounts, announced for next year, are said to contribute to this. What is the situation on the renewable energy market? Is it really difficult to get a return on investment in photovoltaics today?
This is the second time this year that this situation has happened.
The beginning of October surprised us with beautiful, sunny weather, which resulted in new records in the Polish energy sector. In Pomerania, the share of emission-free energy sources in electricity generation reached 59% (October 3 between 13:00 and 14:00). The result was negative energy prices. According to Instrat, on October 3 between 12:00 and 14:00, those selling electricity were charged negative prices. A prosumer who wanted to resell the electricity produced to the grid had to pay an additional PLN 8 per megawatt-hour. Interestingly, this is the second such situation this year. The first took place in June. What does this mean for prosumers?
Negative energy prices – good or bad?
Negative energy prices in the short term do not matter to consumers. The problem may arise when the situation starts to repeat itself more often. Especially since in the near future – in 2024 – a switch to hourly billing for prosumers is planned. What does this mean?
The year 2024 will bring a new system for settling accounts with prosumers
In less than a year, after July 1, 2024, prosumers will sell electricity at current prices. In other words, they will settle based on the amount of energy fed into the grid in a specific hour and the rate applicable on the Day Ahead Market at that hour. The rate will be determined daily in Fixing Phase I. Let us recall that currently average prices are set based on the price on the power exchange from the month preceding settlement. How will the transition from monthly to hourly prices affect the profitability of photovoltaic investments?
Settlement at negative prices is generally not beneficial. Selling produced electricity at negative prices means lower profits and problems with estimating the return on investment in photovoltaics.
In a situation of negative energy prices and just before the switch to hourly billing, the topic of self-consumption, which can protect prosumers from losses, is emerging more and more often.
It is better to use or store energy rather than sell it for next to nothing
The popularity of solid energy storage is growing. This is due to the increased awareness of prosumers about the benefits of self-consumption of electricity. With an energy bank of appropriate capacity, a household can become more independent from an external supplier and various changes and factors that reduce the profitability of photovoltaic investments - including negative energy prices.
The bank enables the storage of surplus energy produced by a home photovoltaic installation. Thanks to this, the prosumer does not have to sell energy to the grid when negative prices occur. Buying an energy storage facility is currently the best solution - a solution that ensures energy security and guarantees a return on investment in photovoltaics!
