
Photovoltaic self-consumption, a source of value for industry
September 2, 2019
Today, photovoltaic self-consumption has become one of the essential tools in the energy transition for households, local authorities and industry, but it has only been given a real legislative framework since 2017.
How does self-consumption work in practice?
Self-consumption is the principle whereby a photovoltaic power producer consumes the electricity it generates to meet its own needs.
Solar self-consumption can be total or partial.
It is said to be total when the electricity produced is fully consumed on site, in real time or after being stored.
It is said to be partial when the producer chooses to inject the surplus electricity he does not consume into the grid, in order to sell it to a third party or to an obliged buyer.
Advantages of solar self-consumption for industry
Self-consumption represents a veritable revolution in the range of solutions available to industrial companies for their electricity needs. It offers numerous economic and environmental advantages.
First and foremost, self-consumption guarantees that an industrial company can secure part of its electricity supply with local, renewable energy, even for the largest consumers. It's a production method that puts the end consumer back at the heart of technological choices.
Self-consumption also means a significant and lasting reduction in electricity bills. In addition to being competitive with grid energy, the photovoltaic kilowatt-hour is produced at a virtually constant cost over the entire lifetime of the installation (more than 30 years).
Self-consumption of solar energy also enables industrial sites to become more self-sufficient and independent of incumbent suppliers, against a backdrop of steadily rising electricity prices, transmission tariffs (TURPE) and energy taxes.
Lack of investment capacity and the need for short payback times are among the main barriers to self-consumption for manufacturers. Today, these barriers can be easily overcome thanks to self-consumption solutions third-party investment.
Here again, the lack of suitable space can be a limiting factor for an industrial self-consumption project. In cases where ground space is lacking, or where roof loads are too low, it may be preferable to install the systems on parking lot shades, in order to unblock the project.
Support schemes for self-consumption
Self-consumption photovoltaic power plants represent a tremendous opportunity to make the transition to renewable energies.
So.., the french government actively supports photovoltaic self-consumption via two devices.
- The guaranteed feed-in tariff, awarded on an open market basis to installations with a capacity of less than 100 kWp. It can be defined as a contract with an obligated body enabling the producer to sell all or part of its output at a tariff set by the government for a predetermined period.
- Complementary remuneration is awarded following a call for tenders, for self-consumption photovoltaic installations with a capacity of over 100 kWp and less than 1000 kWp. It is granted in the form of a premium, which remunerates the producer for the electricity consumed or sold on site. It also remunerates the producer for injecting surplus electricity into the grid.
Exemption from TICFE (ex-CSPE) on self-consumed electricity
Self-consumption photovoltaic installations also benefit from a significant tax advantage, under article 266 quinquies C of the French Customs Code.
Small photovoltaic electricity producers who consume all the electricity they produce for their own business, and whose annual production does not exceed 240 GWh per production site, are exempt from the TICFE (Taxe Intérieure sur la Consommation Finale d'Electricité), which amounts to 22.50 EUR / MWh.
The exemption also applies to the portion of electricity consumed on site that comes from a solar power plant with a capacity of less than 1 MWp.
Thanks to its intrinsic advantages, the support of public authorities and the innovation of players in the French photovoltaic industry, self-consumption is a resounding success. Today, it can be deployed on a large scale throughout France.
Sunti offers a wide range of products for industry and local authorities, an investment-free solution for supplying photovoltaic electricity produced for self-consumption, generating significant and immediate savings on their electricity bills