Does surplus electricity from photovoltaics go to waste?

Photovoltaics is currently one of the most popular solutions in the renewable energy sector. However, when a solar panel produces more energy than is needed, the question arises – does the surplus electricity from photovoltaics go to waste?

Does the surplus electricity from photovoltaics carry over to the next year?

Many owners of photovoltaic installations wonder what happens to the excess energy generated by solar panels. Can it be used later, or does it go to waste? Let’s take a closer look at the mechanisms implemented in the market to allow photovoltaic installation owners to fully benefit from solar energy.

Before we delve into the details, it’s worth understanding how the guaranteed tariff system or net metering works.

Guaranteed tariffs – what are they?

In many countries, excess electricity produced by a photovoltaic installation does not go to waste. Until 2020, Poland operated under the same system. The prosumer would send the excess electricity to the grid and retrieve it later.

Types of photovoltaic cells

The catch, however, was the amount received later – 20% less. This amount constituted a fee for using the national power grid as a gigantic energy storage. Energy produced and sent to the grid in summer was effectively retrieved in winter. In practice, this meant that the surplus electricity from photovoltaics did not go to waste. However, the system has serious technical flaws that make the final electricity bill with photovoltaics not so low after all. Why?

All due to limitations in the grid. When several houses located next to each other have rooftop photovoltaics installed and simultaneously send electricity to it, it can become overloaded. As a result, it does not receive electricity from anyone, and all production goes to waste.

Net metering vs. net billing – principles

Net metering was replaced by another system called net billing. How do they differ? In their approach to utilizing the produced energy. The previous method of settling energy created a huge storage in the Polish power system. However, distribution networks in every country in the world are designed for one-way power transmission. Therefore, it is necessary to at least partially relieve them. This is why net billing was created.

Net billing is a settlement system used for photovoltaic installations that allows owners to effectively manage the excess energy generated by solar panels. Under this system, the energy surplus not used immediately is sent to the electrical grid.

In the context of net billing, measuring the amount of energy produced and consumed plays a key role. This is done using special “smart” meters. When the photovoltaic installation generates more energy than is needed at that moment, the surplus is sent to the grid. In return, the owner receives energy credits in their prosumer account. These can be used later when the installation does not generate enough electricity. The owner thus uses these funds to purchase electricity for their residence.

Is electricity from photovoltaics used immediately?

It is worth noting that if the photovoltaic installation generates more energy, this surplus automatically goes to the electrical grid. It operates on a simple but effective mechanism – electricity from photovoltaics is used immediately, and the surplus is recorded in the user’s account.

Thanks to this, even when the demand for energy exceeds photovoltaic production, the user can draw from the stored energy, which translates into lower electricity bills. This is one of the key advantages of using solar energy in the net billing system, but not the only one.

Its advantage over the old settlement method is the ability to use photovoltaics outside the place of residence. How does it work? If you live in the city and have a holiday home away from the urban area, you can install solar panels on its roof. The electricity produced by them will be converted into zlotys, which will fund a special prosumer account. You will be able to use these funds to purchase energy for your apartment. Thus, the electricity bill with photovoltaics is lower even for residents of city centers, which was not possible before.

The electricity bill with photovoltaics

The electricity bill with photovoltaics will always be lower. This is an obvious truth, although not for everyone. Many people fear that the introduction of a new settlement system is unprofitable in the long run. The new method does indeed affect the payback period for investments in solar panels, but it does not negate the validity of this investment.

The prices for purchasing electricity from prosumers in the net billing system are determined based on data from URE (Energy Regulatory Office). It has not been long since their complete liberation, so we need to wait for them to stabilize. The new settlement system ensures that excess electricity is always profitable. When energy from photovoltaics goes to waste, everyone essentially loses. The energy system accepts unnecessary amounts of energy, and the prosumer does not receive the appropriate amount for the sold electricity. Net billing guarantees that such situations simply will not occur.

When does energy from photovoltaics go to waste?

Although the surplus electricity from photovoltaics usually does not go to waste, there are certain exceptions to this rule that can affect what happens to the excess energy. One of them may be the lack of appropriate storage systems. In some installations, the absence of batteries results in the loss of part of the excess energy, especially if it is not consumed immediately.

Therefore, it is worth investing not only in the photovoltaic panels themselves but also in energy storage technologies. This will allow for effective accumulation of surplus electricity, even when there is currently no demand for energy.

It is important to know that the introduction of the net billing system is associated with the policy of so-called decentralized energy. According to this, the state aims to encourage prosumers to consume as much of the acquired energy as possible. One of the incentives is funding for energy storage under the “My Electricity” program.

How to utilize excess energy from photovoltaics?

The ideal photovoltaic installation in the old system is designed not to produce excess electricity. This raises the question of how to utilize excess energy from photovoltaics in the new settlement system?

You can sell it to the grid at market prices and try to reduce your electricity bill this way. This is one of the most obvious methods. Another option is to store the electricity and use it later, e.g., at night. However, this solution is associated with the need to purchase an energy storage system. It is worth considering this now, as with further increases in electricity prices, the profitability of these devices will only grow.

Summary: surplus electricity from photovoltaics does not go to waste!

In light of the above information, we can unequivocally state that the surplus electricity from photovoltaics usually does not go to waste. Thanks to the net billing system and modern energy storage technologies, users of photovoltaic installations have the ability to effectively manage the energy produced.

Using solar energy not only positively impacts electricity bills but also contributes to environmental protection. Investing in photovoltaics is becoming increasingly attractive for renewable energy enthusiasts, as well as for those who want to save on electricity bills and contribute to sustainable development.

Before deciding on a photovoltaic installation, it is advisable to consult with professionals who can help tailor solutions to your individual needs. Ensure effective utilization of excess energy from photovoltaics and reap the benefits it brings, both for you and for the Planet!

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