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Net-Metering (Law on Energy from Renewable Sources)

Updated: 21.12.2018

Author: Jurga Tallat-Kelpšaitė

According to the Law on Energy from Renewable Sources, excess electricity produced by a solar, wind and biomass power installation can be fed into the electricity grid and sent back to the self-generating customers (prosumers) when electricity is not produced (net-metering). Eligible for net-metering are solar, wind and biomass power installations which are operated by natural persons, including farmers whose annual income from agricultural activities accounts for less than 50% of the received income (≤ 10 kW), and legal persons, including farmers whose annual income from agricultural activities accounts for more than 50% of the received income (≤ 100 kW). For the self-generated and consumed amount of electricity prosumers are exempt from paying a Public Service Obligation (PSO) levy. However, they have to pay the fee for the use of electricity grid set by the National Commission for Energy Control and Prices (NCC).

Eligible technologies

Eligible for net-metering are solar, wind and biomass power installations operated by natural persons, including farmers whose annual income from agricultural activities accounts for less than 50% of the received income (≤ 10 kW), and legal persons, including farmers whose annual income from agricultural activities accounts for more than 50% of the received income (≤ 100 kW) (Chapter III Art. 20¹ Par. 1 Law on Energy from Renewable Sources).

Wind energy	Eligible are wind power installations operated by natural persons, including farmers whose annual income from agricultural activities accounts for less than 50% of the received income (≤ 10 kW), and legal persons, including farmers whose annual income from agricultural activities accounts for more than 50% of the received income (≤ 100 kW) (Chapter III Art. 20¹ Par. 1 Law on Energy from Renewable Sources).
Solar energy	Eligible for net-metering are solar power installations operated by natural persons, including farmers whose annual income from agricultural activities accounts for less than 50% of the received income (≤ 10 kW), and legal persons, including farmers whose annual income from agricultural activities accounts for more than 50% of the received income (≤ 100 kW) (Chapter III Art. 20 Par. 1 Law on Energy from Renewable Sources).
Biomass	Eligible for net-metering are biomass power installations operated by natural persons, including farmers whose annual income from agricultural activities accounts for less than 50% of the received income (≤ 10 kW), and legal persons, including farmers whose annual income from agricultural activities accounts for more than 50% of the received income (≤ 100 kW) (Chapter III Art. 20¹ Par. 1 Law on Energy from Renewable Sources).

Wind energy

Eligible are wind power installations operated by natural persons, including farmers whose annual income from agricultural activities accounts for less than 50% of the received income (≤ 10 kW), and legal persons, including farmers whose annual income from agricultural activities accounts for more than 50% of the received income (≤ 100 kW) (Chapter III Art. 20¹ Par. 1 Law on Energy from Renewable Sources).

Solar energy

Eligible for net-metering are solar power installations operated by natural persons, including farmers whose annual income from agricultural activities accounts for less than 50% of the received income (≤ 10 kW), and legal persons, including farmers whose annual income from agricultural activities accounts for more than 50% of the received income (≤ 100 kW) (Chapter III Art. 20 Par. 1 Law on Energy from Renewable Sources).

Biomass

Eligible for net-metering are biomass power installations operated by natural persons, including farmers whose annual income from agricultural activities accounts for less than 50% of the received income (≤ 10 kW), and legal persons, including farmers whose annual income from agricultural activities accounts for more than 50% of the received income (≤ 100 kW) (Chapter III Art. 20¹ Par. 1 Law on Energy from Renewable Sources).

Amount

Addressees

Procedure

Process flow	The electricity produced by the prosumers is billed in accordance with the electric meters that record the production and consumption of electricity. Electric meters record: 1) the net amount of the self-consumed electricity and excess electricity exported into the grid per calendar month, and 2) the net amount of the self-consumed electricity and excess electricity exported into the grid from 1 April of the current year until 31 March of the following year (‘accumulation period’). If in a current calendar month, the amount of electricity generated and fed into the grid exceeds the amount of electricity used, the unused amount of energy from the preceding month is transferred into to the following month, as an amount, which is accumulated in the accumulation period. If in a current calendar month, a prosumer produces less energy than consumes, the difference between electricity consumed and fed into the grid resulting in a current calendar month is subtracted from the accumulated amount of the electricity fed into the grid over the accumulation period. If at the end of a calendar month a prosumer consumed more electricity than generated and fed into the grid, for this difference he pays the electricity price agreed with the electricity supplier in the electricity purchase and sale agreement. The surplus of the preceding year of electricity produced by a prosumer is not transferred to the following year and he is not paid for it (Chapter III Art. 20¹ Par. 3 and 4 Law on Energy from Renewable Sources). For the self-generated and consumed amount of electricity a prosumer is exempt from paying a PSO levy. However, he has to pay the fee for the use of electricity grid set by the NCC (Chapter III Art. 20¹ Par. 5 and 8 Law on Energy from Renewable Sources). The prosumers have several options to pay the fee for the use of electricity grid (Chapter III Art. 20¹ Par. 7 Law on Energy from Renewable Sources): 1) To pay for 1 kW of the installed power plant capacity 2) To pay for 1 kWh of electricity supplied from the distribution network 3) To pay for 1 kW of the installed power plant capacity and 1 kWh of electricity supplied from the distribution network, or 4) To pay for the use of electricity grid with the self-generated electricity, according to the percentage of the amount of the electricity supplied by prosumer to the electricity grid during accumulation period. The percentage is set by the NCC. The prosumers can switch between the payment methods, but only once per calendar year (Chapter III Art. 20¹ Par. 7 Law on Energy from Renewable Sources).

Process flow

The electricity produced by the prosumers is billed in accordance with the electric meters that record the production and consumption of electricity. Electric meters record:

1) the net amount of the self-consumed electricity and excess electricity exported into the grid per calendar month, and

2) the net amount of the self-consumed electricity and excess electricity exported into the grid from 1 April of the current year until 31 March of the following year (‘accumulation period’).

If in a current calendar month, the amount of electricity generated and fed into the grid exceeds the amount of electricity used, the unused amount of energy from the preceding month is transferred into to the following month, as an amount, which is accumulated in the accumulation period. If in a current calendar month, a prosumer produces less energy than consumes, the difference between electricity consumed and fed into the grid resulting in a current calendar month is subtracted from the accumulated amount of the electricity fed into the grid over the accumulation period. If at the end of a calendar month a prosumer consumed more electricity than generated and fed into the grid, for this difference he pays the electricity price agreed with the electricity supplier in the electricity purchase and sale agreement. The surplus of the preceding year of electricity produced by a prosumer is not transferred to the following year and he is not paid for it (Chapter III Art. 20¹ Par. 3 and 4 Law on Energy from Renewable Sources).

For the self-generated and consumed amount of electricity a prosumer is exempt from paying a PSO levy. However, he has to pay the fee for the use of electricity grid set by the NCC (Chapter III Art. 20¹ Par. 5 and 8 Law on Energy from Renewable Sources). The prosumers have several options to pay the fee for the use of electricity grid (Chapter III Art. 20¹ Par. 7 Law on Energy from Renewable Sources):

1) To pay for 1 kW of the installed power plant capacity

2) To pay for 1 kWh of electricity supplied from the distribution network

3) To pay for 1 kW of the installed power plant capacity and 1 kWh of electricity supplied from the distribution network, or

4) To pay for the use of electricity grid with the self-generated electricity, according to the percentage of the amount of the electricity supplied by prosumer to the electricity grid during accumulation period. The percentage is set by the NCC.

The prosumers can switch between the payment methods, but only once per calendar year (Chapter III Art. 20¹ Par. 7 Law on Energy from Renewable Sources).

Distribution of costs

Plant operator	For the self-generated and consumed amount of electricity a self-generating customer is relieved from paying a Public Service Obligation levy. However, he has to pay the fee for the use of electricity grid set by the National Commission for Energy Control and Prices (Chapter III Art. 20 Par. 13 Law on Energy from Renewable Sources).

Plant operator

For the self-generated and consumed amount of electricity a self-generating customer is relieved from paying a Public Service Obligation levy. However, he has to pay the fee for the use of electricity grid set by the National Commission for Energy Control and Prices (Chapter III Art. 20 Par. 13 Law on Energy from Renewable Sources).

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