Generation of Electricity Without Support
It is also possible to generate electricity from an approved installation producing electricity from renewable energy and be paid the proxy of the market price for any electricity exported to the grid (available for all RES and combined heat and power plants). Normally this option is financial advantageous for installations installed for self-consumption on site. This option is also possible for a completely new installation under Regulation 4A of the Feed-in Tariffs Scheme (Electricity Generated from Solar Photovoltaic Installations) Regulations (S.L. 545.27) and for the addition of RES capacity on an existing RES generator under regulation 54A of the Electricity Regulations (S.L. 545.34):
- “Regulation 4A” option
Regulation 4A of the Feed-in tariff Scheme Regulations S.L. 545.27 provides for the installation of a solar photovoltaic (PV) primarily for self-consumption without support. In this case the electricity produced in excess of consumption and sold to the DSO is paid the proxy of the market price. This option permits you to save on your electricity bills by deferring the import from the grid and meeting your electricity (partly or wholly) from your PV at the time of generation. When the PV is not producing, or your consumption is higher you would still import from the grid. The financial advantage of this option depends on your consumption profile, level of consumption and the electricity tariff bands normally applicable in your case. There are also non-financial advantages related green corporate objectives in the case of companies.
(ii) Increase of capacity on same meter (“Add-on”) option
You have the option to add capacity on an existing PV on the same electricity meter without benefitting from a feed-in tariff on this new capacity. If the original PV is benefitting from a feed-in tariff, the feed-in tariff payment will be capped on the kWp of the original PV and any excess units sold to the DSO would be paid at the proxy of the market price. Possibly with this option it would be more financially advantageous for you to opt to self-consume the electricity produced and export only the surplus. The financial advantage of this option depends on your consumption profile, level of consumption and the electricity tariff bands normally applicable in your case. There are also non-financial advantages related green corporate objectives in the case of companies.
