PROSUMER DILEMMA: DOES CHOOSING NET BILLING LOWER HOUSEHOLD ELECTRICITY COSTS? Cover Image

PROSUMER DILEMMA: DOES CHOOSING NET BILLING LOWER HOUSEHOLD ELECTRICITY COSTS?
PROSUMER DILEMMA: DOES CHOOSING NET BILLING LOWER HOUSEHOLD ELECTRICITY COSTS?

Author(s): Piotr Mielziuk, Anna M. Klepacka, Wojciech J. Florkowski
Subject(s): Socio-Economic Research
Published by: Szkoła Główna Gospodarstwa Wiejskiego w Warszawie
Keywords: prosumer; micro-PV installation; net-billing; net-metering; electricity generation;

Summary/Abstract: PV panel and storage battery additions using the case of a rural prosumer operating a micro-PV installation and faced with a decision to switch to the new net-billing (NB) system or continue with net-metering (NM) (given the new subsidy for a storage battery). Methods: The benchmark data about prosumer electricity production and use and predicted electricity prices for the 15-year period serve to calculate future changes in electricity costs under alternative scenarios, including a household without a micro-PV installation. The prosumer cost for electricity used is calculated using the Levelized Cost of Electricity (LCOE) and the modified LCOEC accounting for consumption (LCOEC). Results: The average electricity price is estimated at 2.33 PLN/kWh in 2037 (almost three times more than in 2022). A similar increase is calculated for prices using the G12 tariff applied to households. The prosumer flexibility in electricity self-consumption determines the advantage of a storage battery, but the subsidy for a micro-PV installation is crucial. Without the subsidy, having a micro-PV installation with a storage battery in the NB system would not lower the LCOEC as compared to the NB scenario without storage. Conclusions: The NB system is associated with higher electricity bills than the NM system, although owning a micro-PV installation still lowers electricity costs as compared to a household without it. The adoption of micro-PV installations by households is likely to continue, albeit at a slower rate than in recent years.

  • Issue Year: 23/2024
  • Issue No: 3
  • Page Range: 19-45
  • Page Count: 27
  • Language: English
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