Net-Metering

Updated: 04.01.2019

Author: Karl Wikberg

The Regulation on Net-metering authorises the exemption of certain plant operators from paying the Public Service Obligation (PSO) or part of it. Electricity producers using all or part of the electricity produced for their own needs are completely or partially exempt from paying the Public Service Obligation on this electricity. The Public Service Obligation is a charge levied to support renewable energy.

Eligible technologies

All technologies except for geothermal energy are eligible for net-metering. 
Plants must be connected to a collective grid and be listed in a key data register (Stamdataregistret) (§ 9 BEK 999/2016).

Wind energy

Eligible under following conditions:

  • For wind energy plants > 25 kW the plant has to be connected to a private supply system or if the plant is located at the place of consumption (§ 3 BEK 999/2016).
  • For wind energy plants up to 25 kW the plant has to be connected to a private supply system (§ 4 BEK 999/2016).

Solar energy

Eligible under following conditions:

  • For solar energy installations > 50 kW the plant has to be connected to a private supply system or the plant has to be located at the place of consumption (§ 3 BEK 999/2016).
  • For solar energy installations up to 50 kW the plant has to be connected to a private supply system (§ 4 BEK 999/2016).

Biogas

Eligible under following conditions:

  • For installations > 11 kW the plant has to be located at the place of consumption (§ 3 BEK 999/2016).
  • For installations up to 11 kW the plant has to be connected to a private supply system (§ 4 BEK 999/2016).

Hydro-power

Eligible under following conditions:

  • For installations > 11 kW the plant has to be located at the place of consumption (§ 3 BEK 999/2016).
  • For installations up to 11 kW the plant has to be connected to a private supply system (§ 4 BEK 999/2016).

Biomass

Eligible under following conditions:

  • For installations > 11 kW the plant has to be located at the place of consumption (§ 3 BEK 999/2016).
  • For installations up to 11 kW the plant has to be connected to a private supply system (§ 4 BEK 999/2016).

Amount

Every consumer is obliged to pay a surcharge, the so-called Public Service Obligation (PSO). It depends on each consumer's individual level of consumption. The surcharge for the support of renewable energy is part of the PSO tariff. The surcharges are determined by the Danish Energy Agency four times a year.
Which surcharge a plant owner is exempt from depends on the installed capacity of his plant.
  • The following plants are exempt from the whole PSO tariff:
    • Solar energy installations up to 50 kW
    • Wind energy plants up to 25 kW
    • Other technologies up to 11 kW (§ 4 par. 2 BEK 999/2016).
  • The following plants are exempt from the surcharge for the support of renewable energy:
    • Solar energy installations > 50 kW
    • Wind energy plants > 25 kW
    • Other technologies > 11 kW (§ 3 par. 2 BEK 999/2016).

Addressees

The persons entitled to total or partial exemption from PSO (tariff) are the owners of eligible plants (§ 3 par. 3 and § 4 par. 3 BEK 999/2016). For tenants who are not the owners of eligible plants, may be entitled to total or partial exemption from the PSO tariff for own consumption of electricity produced in a plant that uses only renewable energy sources if:

  • the plant is 100% owned by the owner of the property,
  • the owner of the property has made the plant available to the tenant for net metering and
  • the tenant pays the electricity consumption directly to the grid company on an hourly basis (§ 5 BEK 999/2016).

Procedure

Process flow

Plant operators must apply to Danish Energy Agency for net-metering (§ 6 BEK 999/2016).

The net-metering is calculated on an hourly basis (§ 3 par. 1 and § 4 par. 1 BEK 999/2016).

Danish Energy Agency determines whether the conditions for net-metering are met and which type of net-metering will apply (§ 7 par. 1 BEK 999/2016).

Competent authority

Danish Energy Agency (§ 7 par. 1 BEK 999/2016).

Distribution of costs

State

The costs of the net-metering system are covered by the budget managed by Danish Energy Agency.

Denmark

Further information

Basic information on legal sources