Are solar systems subsidised?
A self-consumption community (EVG – Eigenverbrauchsgemeinschaft) is a contractual agreement between several parties who jointly consume solar electricity which they produce themselves. The EVG is made up of property owners/operators of solar panels and several consumers. Consumers within the EVG may also be owners of a flat within a building or tenants.
Since the new Energy Act came into effect in 2018, EVGs have been redefined as self-consumption consortiums (ZEV – Zusammenschluss zum Eigenverbrauch), which has made solar projects even more attractive. Now it is possible to collectivise the solar electricity generated between neighbouring buildings, as well as among flats within the same building.
|ADVANTAGES FROM THE TENANT'S POINT OF VIEW||ADVANTAGES FROM THE TENANT'S POINT OF VIEW|
|Lower electricity bills||Increases the value of the property|
|Easier access to solar electricity||Higher investment return due to self-consumption|
|Lower incidental expenses||More attractive living spaces|
The EVG/ZEV shares a connection to the public grid among its participants and acts as a legal entity vis-à-vis the local energy supply company. Via this connection, excess solar electricity is either fed into the grid or additional electricity is purchased where necessary.
A self-consumption consortium is often the only option that tenants and owners of flats have to produce and consume their own solar power. Thanks to ZEVs, tenants are able to produce green electricity while also lowering their electricity bills.
After establishing a ZEV, the consortium will receive a single bill from the energy supply company. The ZEV regulates the way the costs are calculated between the parties.
A legally valid agreement and a document on electricity supply are needed to establish a ZEV. Both documents must be signed by all parties. Matters of internal management such as how electricity bills are divided, invoicing and issuing of certificates of origin are regulated in the agreement.
When choosing the legal form of the ZEV, the parties have freedom of choice within the bounds of the law, with the “simple partnership” being the most widespread among ZEVs.
The costs of establishing a ZEV are borne by all of its members. How much those costs will amount to depends on the energy supply company and the chosen electricity product. Our partners Climkit and Blockstrom would be happy to help you with establishing your ZEV and drawing up your agreement.
When introducing the ZEV, the tenants or flat owners decide for themselves whether they would like to join the self-consumption consortium. The more parties join the self-consumption consortium, the higher the level of self-consumption will be. This will also have a positive effect on the returns yielded by the solar panels.
The cost of producing your own solar electricity (including operating costs) is currently approximately 12 centimes per kWh. Electricity from the grid currently costs 23 centimes per kWh. Using self-generated electricity is cheaper by comparison and yields better returns for your solar panels. It is therefore desirable for as much of the electricity you consume as possible to be self-generated.
Establishing a ZEV with many electricity consumers leads to a significant increase in the level of self-consumption.
If the EVG/ZEV consumes more than 100,000 kilowatt hours per year, the self-consumption consortium may shop for its residual electricity on the free electricity market. In this way, the self-consumption consortium can shop for the most cost-effective energy, potentially reducing each household’s electricity bills by up to 30 %.
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