Sales of electricity from photovoltaics as a business idea

Service Business

Real estate and gold are the most popular forms of long-term investment. The world is moving forward, however, by offering other reliable and more ethical sources for additional or leading businesses. A green alternative is the sale of photovoltaic energy. Ecology is just one of the arguments in favor of photovoltaics. Real profits and profitability from a purely business point of view are equally important.

Who can sell electricity from a photovoltaic installation?

The subject of sales of photovoltaic energy can be divided into two categories - sales from owners of micro-installations with a capacity of up to 50 kWp (individual users, or also companies or farms with micro-installations with the above-mentioned capacity) and from owners of large photovoltaic farms.

In the first case, we are talking about energy production for private use. But what if there is too much electricity produced? Then the surplus is discharged to the grid's storage and collected during the accounting year on special, preferential terms - 0.7 or 0.8 kWh is collected for 1 kWh sent to the power grid. This difference depends on the power of photovoltaics - for installations up to 10kWp, the return is 0.8 kWh, while the lower value for those with a power of 10 by 50 kWp.

If you do not want to lose 20 - 30% of the surplus of energy produced from your solar power plant, check photovoltaics with 1: 1 balancing

In the case of photovoltaic farms - their goal is to sell energy generated from renewable sources. In the case of installations above 500 kWp, only entities that have the appropriate license may engage in this type of activity.

Sales and collection of photovoltaic energy step by step

Prosumers with micro-installations can resell energy to the grid, which is guaranteed by the Act on RES. Then the sale of the surplus is valued at the average quarterly price announced by the Energy Regulatory Office.

They can also store it. It is worth writing this great advantage more broadly:

  • in the periods of the greatest insolation (spring-summer), the production of electricity is the most effective. Then the photovoltaic installation produces more electricity than the users need;
  • excess energy is discharged into the grid. There it is stored throughout the accounting year;
  • in periods of lower efficiency of the photovoltaic installation, the prosumer receives his stored energy, thanks to which he can easily supply the house with electricity during the autumn and winter months.

The prosumer storing the generated electricity is clear about how much energy he can still use. These data are always included in the electricity bill issued by the electricity company to which the photovoltaic system is connected. What's more, you can also check the exact data on how much surplus was generated by their installation and how much time was left for its use.

The perspective of the owners of solar farms is completely different. What is the process of selling electricity from photovoltaics?

The auction system and the PPA model

The energy produced in photovoltaic farms is most often sold in an auction system. This one guarantees specific rates for sending the agreed energy units. The second method of settling distribution is the PPA formula. From the investor's perspective, the wholesale price for 1 MWh is also important information.

The first method of settlement is regulated by the RES Act, introduced in 2015. Thanks to the auction system, the competitiveness of the energy market has increased. All entities licensed to generate electricity can join the auction. In this case, the rule is simple - the contract is won by the entity that offers the most attractive terms of electricity resale.

The PPA is a civil law contract concluded between the producer of electricity from a photovoltaic installation and the buyer, i.e. the recipient of energy. This document clearly defines the terms of sale, including delivery schedule, penalties for untimely or insufficiently high energy delivery, payment terms etc. At the moment, the auction model is more competitive than the PPA. However, this is not a once and for all situation, so it is worth monitoring it. The demand for electricity from renewable energy sources is growing, so one can expect rather an increase in prices.

Sales of photovoltaic energy - your business idea

The situation of Polish entrepreneurs is not easy - especially with the new capacity fee, which became a fact with the arrival of 2021. How to reduce these inconveniences?

It is worth looking at the sky - this is where the largest power plant in the world - the Sun - works for free. Why is the sale of energy from solar farms profitable?

  • The price of photovoltaic installations has never been so low. The rapid progress in technology and the lack of customs duties on modules produced in China have a large share in this;
  • very favorable government and local government subsidy programs for photovoltaics as well as attractive ways of using the installation for business, e.g. leasing or credit are widely available;
  • high self-consumption - most enterprises use the most energy during the day - this is exactly when the solar farm works most efficiently.

Sales of energy from photovoltaic farms - legal situation

Laws on the sale of solar PV to businesses are changing, but the situation for 2021 is as follows. Individual investors can count on a preferential VAT rate of 8%, while a fixed rate of 23% VAT covers all photovoltaic installations used for business purposes.

Accounting for surplus energy is more widely available. In the first place, the generated energy covers the electricity consumption for the operation of machines and devices of a given enterprise. Subsequently, electricity generators can manage their surpluses in three ways:

  • storing them as a prosumer;
  • selling them on general terms;
  • by storing them in batteries.

The advantages and disadvantages of each solution should be considered individually.

As owners of photovoltaics for companies, we must also remember about the concession - this is necessary for installations with a capacity of 500 kWp to 1 MWp and those above 1 MWp. For most enterprises - companies, factories and production plants, a small installation is enough, but if you think about selling electricity from a photovoltaic farm as the main income - then the size of such investment will also affect the legal situation and the obligation to have a license.

The sale of electricity from photovoltaics is a business idea for the 21st century. The profitability of such an action is confirmed by numerous studies and reports. Analyzing the current situation in Poland - there has never been a better time to start your adventure with the RES market. However, legal and technical issues should always be consulted with specialists.

Photovoltaics for RES companies Biomar. We will help you choose the most profitable installation that will not only supply your company with energy, but also allow you to sell the surplus in the best and most comfortable way.

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