Net billing

Net Billing: introduction to a New Energy Landscape
What is Net Billing?

Net Billing, or “Net Billing,” is an innovative energy offsetting system, revolutionizing the way consumers interact with the electric grid. Unlike traditional Net Metering, where excess energy from renewables is netted against future consumption, Net Billing focuses on financial compensation for energy delivered to the grid.

How does it work?

  1. Installing a Photovoltaic System: The consumer installs a PV system on the roof or on an adjacent property.
  2. Energy production: The PV system produces energy, meeting some or all of the consumer’s energy needs.
  3. Offsetting: energy that is not directly consumed is fed into the grid.
  4. Compensation: The consumer receives financial compensation for excess energy, based on a predetermined price.

Advantages of Net Billing:

  • Encourage Self-Consumption: promotes the installation of photovoltaic systems, encouraging self-production and self-consumption of energy.
  • Saving Money: reduces energy costs, providing economic benefits to consumers.
  • Sustainability: Contributes to the green transition by reducing the energy footprint and dependence on fossil fuels.
  • Flexibility: Offers consumers greater energy independence and control.
  • Challenges of Net Billing:
  • Low Reimbursement Price: The price consumers receive for excess energy is often lower than the price they purchase.
  • Limited Access: Access to Net Billing may be restricted by regulatory frameworks or network operators.

Required Investment: Installing a PV system involves an initial investment cost.

Net Billing vs. Net Metering: what is the difference?

Both Net Billing and Net Metering are programs that encourage the generation of electricity from Renewable Energy Sources (RES), usually through photovoltaic systems. However, they differ in the way they compensate generators for the excess energy they feed into the grid.

Net Metering:

  • Compensation: in Net Metering, excess energy fed into the grid is “netted” against the energy received from the provider.
  • Compensation Price: Compensation is based on the retail price of electricity (retail rate). This means that you get back essentially one unit of energy for each unit you give to the grid.
  • Application: Net Metering is a more mature program that is widely implemented in many parts of the world, including the initial implementation in Greece.

Net Billing:

  • Compensation: in Net Billing, excess energy is compensated at the wholesale electricity price (wholesale rate).
  • Compensation: The wholesale price is usually lower than the retail price. This means that you get fewer units of energy back for each unit you give to the grid.

Application:

Net Billing is a newer program that is still in the initial stage of implementation in Greece.

The role of the BPA in Net Billing:

The Hellenic Electricity Distribution Network Operator (HEDNO) plays an important role in Net Billing as it is the operator of the electricity distribution network in Greece. Let’s see how BPA is involved in Net Billing for businesses:

  • Connection procedures: BPA is responsible for reviewing applications and issuing the necessary terms and conditions for connecting PV systems to the distribution network.
  • Technical Specifications: The BPA defines the technical specifications that PV systems must meet in order to be connected to the distribution grid, ensuring the safety and quality of the energy provided.
  • Energy measurements: The TEN-EPA installs and maintains energy meters at the premises of the companies participating in Net Billing. These meters record the energy produced and consumed.
  • Network Management: The BPA manages the distribution network to ensure the smooth flow of energy, both from generators to the grid and from the grid to consumers.
How to start a Net Billing business with the BPA:
  1. Gathering Information: Initially, the company should collect information about Net Billing and consult a qualified consultant to assess the suitability and efficiency of the PV installation.
  2. Application for connection: next, the company must apply for the connection of the PV system to the distribution network of the PPP. The application is accompanied by the necessary technical documents and studies.
  3. The application must be accompanied by the necessary technical and technical documentation and the necessary technical documentation and the necessary conditions for connection: The PPA examines the application and issues the connection conditions, which describe the technical specifications that the system must meet and the procedures for connection.
  4. Installation and Assurance Procedures: after the terms of connection are issued, the company can proceed with the installation of the PV system, following strict specifications and quality assurance procedures.
  5. Net Metering Contract: Finally, the company signs a Net Billing Contract with the electricity supplier, which defines the terms of participation in the program and the compensation price for excess energy.

Important Sources of the BPA:

Virtual Net Billing: an Advanced Energy Offsetting System

Virtual Net Billing, or “Virtual Energy Offsetting”, is an advanced form of Net Billing that offers even greater flexibility to renewable energy producers. Let’s see how it differs from traditional Net Billing:

Net Billing vs. Virtual Net Billing:
  • Producer: In Net Billing, the energy producer is usually also the energy consumer, having installed PV on the same roof. In Virtual Net Billing, the producer may not necessarily be the consumer. It may produce energy at one location and feed it into the grid on behalf of someone else.
  • Offsetting: in Net Billing, excess energy is financially offset against the producer’s own consumption. In Virtual Net Billing, there is no physical netting of energy. Instead, the generator receives financial compensation for the energy it injects into the grid, regardless of where it is consumed.

Advantages of Virtual Net Billing:

  • Location Flexibility: Allows for the installation of renewable energy generation plants in more efficient locations, such as wind farms in mountainous areas.
  • Business Opportunities: Creates opportunities for companies that develop and operate PV farms by selling the energy produced to third parties.
  • More efficient use of renewable energy: can lead to better use of renewable energy sources by installing plants in more suitable locations.

Challenges of Virtual Net Billing:

  • Regulatory Framework: A mature regulatory framework is needed that defines the terms of participation, compensation rates and grid management.
  • Efficient Network: Requires an efficient energy transmission network to manage the flow of energy from different sources.
  • Advanced Management: Requires more complex management of the grid, as energy does not flow directionally from the producer to the consumer.
Application in Greece:

Greece has recently incorporated Virtual Net Billing into its legislation with Law 5037/2023. This is expected to boost the development of RES and attract new investments in the sector. However, its full implementation requires the development of the regulatory framework and grid infrastructure.

Conclusion:

Virtual Net Billing is an important step towards a more efficient and flexible energy market. With the maturity of the system and the development of the infrastructure, it is expected to play an important role in increasing the share of renewable energy in the country’s energy mix.

Net Billing for Business in Greece

Net Billing presents significant benefits for businesses in Greece, encouraging their energy autonomy and savings. Let’s see how it works and what are its advantages and challenges for businesses:

Implementing Net Billing in Business:

  • Eligible Facilities: Businesses can install photovoltaic systems on the roofs of their buildings or on adjacent lots on their property.
  • Energy Production: The PV system produces electricity, meeting some or all of the daily needs of the business.
  • Offsetting: when production exceeds consumption, the excess energy is fed into the grid.
  • Compensation: The company receives financial compensation for the energy it injects into the grid, based on a predetermined price.

Advantages of Net Billing for Business:

  • Reduction of Energy Costs: Self-generation of energy through PV reduces dependence on the electricity provider and thus reduces energy costs.
  • Improved Environmental Performance: the use of renewable energy helps to reduce the energy footprint of the business and enhances corporate social responsibility.
  • Energy Independence: On-site energy production increases the energy independence of the company and protects it from price fluctuations in the energy market.
  • Installation subsidies: In some cases, companies can receive government subsidies for the installation of photovoltaic systems.
Net Billing Challenges for Businesses:
  • Initial Investment Cost: Installing PV systems requires an initial investment cost, the payback time of which depends on several factors.
  • Suitable Space: The business must have suitable space on the roof or on a privately owned plot for the installation of PV.
  • Limited Compensation: The compensation price for excess energy may be lower than the purchase price of energy from the provider.
  • Regulatory Framework: The regulatory framework for Net Billing in Greece is still under development, so possible changes may affect the operation of the system.

Conclusion:

Net Billing is an attractive option for businesses looking to reduce energy costs, improve their environmental footprint and increase their energy independence. However, it is important to carefully evaluate the advantages and challenges before installing PV

Net Billing Application in Greece:

Net Billing is still in the initial stage of implementation in Greece (March 2024) and currently there is no possibility to apply directly through the BPA.

Let’s look at the current situation and alternative sources of information:

Current Status:

  • The BPA website does not yet provide details on the application process for Net Billing.
  • It may be that the reception of applications for Net Metering (the available program until recently) has been suspended due to upgrades to the online platforms.

What you can do:

  • Information from the Energy Regulatory Authority (RAE): visit the RAE website(https://www.rae.gr/en/) for any announcements on the launch of Net Billing applications.
  • Consult an Energy Efficiency Advisor: A qualified consultant can help you assess the suitability of Net Billing for your business, calculate the potential benefits and guide you through the application processes when they are activated.
  • Monitor the BPA website: visit the BPA website(https://deddie.gr/) for future announcements and detailed guidance on how to apply for Net Billing.

Possible Developments:

  • The implementation of the Ministerial Decision defining the technical specifications and procedures for Net Billing is expected.
  • The BPA will develop and make available a digital platform for Net Billing applications.

Conclusion:

While Net Billing application submission is not yet available, there are ways to prepare for and take advantage of the program when it is activated.

Tips:

  • Gather information about Net Billing and evaluate its suitability for your business.
  • Contact qualified consultants for guidance.
  • Stay up to date with developments from the RAE and BPA.

We hope future announcements will pave the way for the implementation of Net Billing in Greece.

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