As of 21 October 2024, DEDDEO now accepts connection requests for RES & RES stations SYTHEA net billing & virtual net billing for the whole territory.
What is net-billing?
Net-billing is a system that allows electricity consumers to generate their own electricity from renewable sources, such as solar panels or wind turbines, and use it to reduce the cost of their consumption. Unlike the more familiar net-metering system, net-billing is an economic netting of the energy produced and consumed, i.e. it takes into account the purchase and sale price of the energy, which makes it more complex and flexible.
How does net-billing work?
Net-billing is based on the idea that the consumer generates electricity from his own system, uses the energy he needs and feeds the surplus into the country’s electricity grid. However, when his production is less than his needs, he receives electricity from the grid, as with any other consumer.
The key feature of net-billing is that energy exported to the grid is sold at the wholesale price (usually a price lower than the retail price at which the energy is purchased from the grid). At the same time, the consumer buys energy when he needs it, at the market price, taking into account the relevant taxes and charges.
Stages of net-billing operation
1. Energy production: The photovoltaic or wind system produces energy to meet the needs of the household or business.
2: The energy produced initially meets the current energy needs of the consumer.
3. Selling surplus energy: If the energy produced exceeds consumption, the surplus energy is injected into the grid and financially credited to the consumer’s bill at the wholesale market price.
4. Buying energy from the grid: When the consumer’s generation is not sufficient, he/she buys electricity from the grid at a retail price.
Advantages of net-billing
– Economic efficiency: Enables the consumer to reduce the cost of their electricity bill while utilizing the energy they produce.
– Flexibility: Unlike net-metering, where only the amount of energy is netted, net-billing also takes into account the value of the energy produced and consumed, providing more financial flexibility.
– Strengthening sustainability: Like net-metering, it promotes renewable energy production, helping to reduce CO2 emissions and protect the environment.
In summary, net-billing is a smart energy management system for those who want to invest in self-production through renewable sources. Although its economic performance depends on energy market fluctuations, it is a viable solution for reducing dependence on the grid and shifting to greener forms of energy.
