How to Make Money with Solar Energy

Much has already been said and written about the advantages of using renewable energy sources such as the sun, wind, ocean waves, and others. These advantages are significant, but there are also certain drawbacks. For example, we cannot fully control the generation of electricity from such sources. We cannot “ask” the sun not to shine while we are at work or “increase” sunlight in the evening when we need more energy. So what should we do with the excess energy that we do not use and with the shortage when we need it?
There are several possible solutions:

1. Install energy storage systems (batteries).
2. Sell excess electricity to the grid.

Let us focus on the second option. In order to encourage society to transition to renewable energy sources, the Law “On Alternative Energy Sources”. . Amendments to this law introduced in 2013 provided for the implementation of a special tariff under which the state undertakes to purchase all electricity generated from renewable energy sources. This mechanism is known as the “green tariff.” This tariff is expected to remain in effect until 2030, and its rate, among other factors, depends on the year the solar power plant was built. As of 2024, it is approximately €0.098 per kWh (the exact rate varies depending on the energy source and the year of construction and may be reviewed several times a year by the National Energy and Utilities Regulatory Commission — NEURC). For example, the currently applicable tariffs are defined by NEURC Resolution NEURC Resolution No. 2653 dated December 29, 2023. Electricity generated under this scheme is purchased by the state enterprise “Guaranteed Buyer,” with which a contract must be concluded after the solar power plant is built.

An alternative to the “green tariff” is the so-called Net Billing mechanism introduced by the law adopted in 2023 (No. 9011-d). Let us briefly explain what it is.

Net billing is an approach to calculating electricity costs in which a customer who generates electricity (usually using solar panels or other renewable energy sources) can sell excess electricity back to the grid. Under a net billing system, the consumer pays for the actual electricity consumed minus the amount of energy supplied back to the grid. This incentive mechanism is used in many countries around the world, including the United States, Japan, Germany, France, and others.

An important note: net billing is a mechanism designed to encourage electricity consumers — those who have their own electricity consumption and, by installing renewable energy sources, reduce the amount of electricity they draw from the grid and therefore lower their expenses. Considering that electricity prices for businesses are currently high and continue to rise, the potential savings can be significant. So where does net billing come in? In simple terms, it allows the grid to be used as a kind of energy storage system for the electricity generated. This energy can later be used for your own needs when renewable sources are not producing electricity. The law sets a limit for such storage — no more than 50% of your own consumption. The operational mechanism of this method in our country has not yet been fully defined. How the volume will be calculated, how often settlements will occur, and which tariffs will apply are still being determined by lawmakers.

In addition to the “green tariff” and the net billing mechanism, owners of renewable energy systems can also use the Feed-in-Premium model, as well as conclude direct bilateral contracts with electricity consumers.