From 1/5/2024 for businesses and from 16/5/2024 for households, the self-production (or rather self-consumption) of energy from photovoltaics has changed, with the abolition of net-metering and the establishment of net-billing.
This information note summarizes the main differences between the two, based on what is known so far, as the relevant Ministerial decisions have not yet been issued, which will determine the details of the implementation of net-billing (even though the law establishing it has been passed from March 2023).
| Question | Net-metering | Net-Billing |
| What it is; | Offsetting between PV produced and consumed energy,
In other words, in net-metering, kilowatt-hours are offset |
Self-consumption of energy from PV in real time by selling the excess energy. That is, in net-billing, accounts are offset |
| What happens with the energy that the consumption demands? | Energy from PV is directed to consumption in real time | |
| What happens to excess PV energy? | It is routed to the public power grid. This energy is recorded in order to offset it with the consumed energy drawn from the network | It is routed to the public power grid. This energy will be sold by the consumer, at a price that is not known at this time. It is assumed to be either €0.065/kWh or the current wholesale electricity price. |
| What happens when the energy from PV is not enough to cover the consumption? | The consumption draws the rest of the required energy from the public electricity grid. This energy is recorded and offset against the excess energy from the PV that was sent to the grid. | The consumption draws the rest of the required energy from the public electricity grid. This action will normally be paid according to the provider’s current billing rate. |
| How often is energy measured? | The usual counting cycle follows. | |
| What happens if in a counting cycle the excess is greater than that drawn from the grid? | The excess of stored energy in one offsetting cycle is not lost, but is transferred to the next one, with a three-year validity. | The consumer is compensated in each offsetting cycle for the energy he sent to the grid, while at the same time he pays for the energy he drew from the grid. |
| Is there a limit to PV power? | The maximum power limit was 10 kWp per supply for the
residential sector and 100 kWp per supply for businesses. |
There is no limit. Probably the limit will be the installed capacity of the supply. |
| Will there be a virtual one? (i.e. PV and consumption to be in different space) | Net-metering was not allowed until now. | It can be done by a single company or through an Energy Community. |
| Can I apply now? | From 15/5/2024, the only ones who can submit a relevant application are
• Farmers for rural consumption with power up to 30 kWp • bodies of the General Government • systems to meet the energy needs of citizens living below the poverty line and households affected by energy poverty In any case, the provision must be permanent and not a construction one. |
Not at this moment. The relevant Ministerial decisions that will determine the implementation details are awaited. Although the law establishing net-billing has been passed since March 2023, the relevant Ministerial decisions are still awaited
In any case, the provision must be permanent and not a construction one. |
| Is it necessary to install a battery in the PV system? | In essence, the public electricity grid is used as a battery, as the excess energy is offset against the consumed. Thus the battery gives benefit only through the reduction of regulated charges (which are relatively small) for the part of the energy that will be drawn from the battery, instead of the grid. | As there will be a significant difference between the sale and purchase price of the energy, the battery offers a significant benefit in such a system. |