The Economy and Possibility of Energy Community in Finnish Solar Energy Production

Abstract

The amount of solar energy production in the electricity distribution networks is increasing. This is due to technology conventionalisation, which in turn has led to solar panels becoming more affordable. The aim of this study was to analyse real-life, domestic electricity consumption to determine whether changes in current Finnish legislation could enable new economic possibilities in the use of solar power. The study data consisted of electricity consumption data, that has been digitally monitored on hourly basis. The hypothesis was that a group of individual solar power producers could benefit from a common system, as compared to each group member having a solar production system of their own. In Finland, private households benefit from solar energy production via savings on both energy and transmission costs, as well as the taxes included in these costs. It is economical to install and utilise solar energy even though the price of solar energy is higher than that of fossil fuels. In this study, the economies of energy communities with larger solar panel units were compared with individual households with small-scale solar production units. As a conclusion, the study results indicate that the overall economy of solar energy would be better if the solar panels in the network were installed in larger units. However, this possibility requires energy communities to be legally permitted