According to experts, the new electricity tariffs are a great opportunity to boost self-consumption. In fact, the main beneficiaries of these rates are people who have solar panels in their homes. But what is the reason for this?
Here at MyGreenHouse we want to tell you the most important aspects regarding the new electricity tariffs and their relationship with solar energy.
What you should know about the new electricity tariffs: key points
Although the new electricity tariffs and rates have created some confusion among consumers, understanding how they work is simpler than you may think.
The changes basically centre around three main issues:
- The possibility of contracting one or two electricity powers (potential).
- The establishment of three time-bands with different prices calculated in KWh: peak rate, flat rate, and off-peak rate.
- The adjustment of the regulated parts of the bill, i.e. the so-called tolls (which cover the costs linked to the transportation and distribution of energy) and charges (which cover the costs related to the energy policy of each territory, whether national, regional, or local).
All these changes aim to give greater weight to the variable component of the bill, which means that the amount charged will focus more on actual consumption and less on the different fixed costs of accessing the electricity grid.
However, the presence of time-bands with different tariffs means that the final cost of the bill is highly conditioned by when and not by how much energy we consume, something that has created a fair amount of controversy.
Do the new electricity rates affects all users equally?
Until now, there were 12 types of electricity tariffs, which varied depending on the contracted power and whether you were on the regulated market (PVPC tariff or Voluntary Price for the Small Consumer) or on the free market.
As of 1 June, these tariffs have been reduced to 6 types, the main distinction being the contracted power, less than 15 kWh or more than 15 kWh.
All users who contract less than 15 kWh will have a single tariff (2.0 TD), with three time-bands instead of two and with the possibility of contracting two different powers (potential) depending on the time-band.
Users who contract more than 15 kW of power (normally companies) will now have a 3.0 TD or 6.XTD tariff for supplies connected to the high-voltage grid. These tariffs now have 4 “electricity seasons” (conditioned by geographical location: the Peninsula, Ceuta and Melilla, the Balearic Islands, and the Canary Islands), 5 ratings depending on the day of the week, and hourly discrimination in up to 6 time-bands.
The new electricity tariffs will force users to have to make more decisions regarding the planning of their activities if they want to avoid their electricity bills skyrocketing. The aim of this measure is to shift energy demand to periods when the grid saturation is lower, thus avoiding rising costs. To do this, we will have to shift most of our energy expenditure to the off-peak hours, from 00.00 hours to 08.00 hours, and on weekends and national holidays for the full 24 hours.
How do photovoltaic panel users benefit from the new electricity tariffs?
Solar self-consumption is one of the most profitable options to meet our energy demands. This is especially so in Spain, a country where we are lucky enough to enjoy almost 300 days of sunshine a year.
In addition, photovoltaic systems are simple to install, easy to maintain, and you can choose between off-grid or grid-connected systems, depending on your needs. In the second option, we can be compensated for the surplus energy we produce, which will help us to further increase our savings and recover the investment sooner.
One of the main advantages of self-consumption is that you are independent. What we mean by this is that you are not affected by changes in market prices or new electricity tariffs.
Moreover, the new tariffs especially benefit users of solar panels because the most expensive time-band (from 10am to 2pm) coincides with the middle of the day and the hours of greatest solar radiation, which is when the solar panels are in full operation and producing the most energy.
So, if you have a photovoltaic system installed in your home, it will generate more electricity at the exact time when the price is highest, saving up to 60% on your electricity bills.
Here at MyGreenHouse, we are totally certain that self-consumption is the future. It isn’t just for the chosen few, you too can install solar panels in your home and take advantage of all its benefits.
Please ask us for more information without any obligation whatsoever.