Transitioning from net-metering to net-billing: A model-based analysis for Poland

Abstract

Small-scale solar power capacity will be critical for limiting global fossil fuel consumption and meeting emissions reduction targets in the coming years. Several countries have launched policy measures to encourage residential and industrial consumers to invest in solar photovoltaic (PV) panels. In Poland, the ”My Electricity” grant support program and a consumer-favorable net-metering system for micro-installations have enabled the PV market to grow rapidly since 2016. Due to growing concerns about the stability of the transmission network and power distribution systems, a new market-based compensation mechanism for new prosumers entered into force in 2022. This study assesses the economic impacts that arise from the transition from net metering to net billing, evaluates the effect of the newly established net-billing scheme on the self-consumption of residential PV-only installations, and compares the impact of both compensation mechanisms on the profitability of residential PV-only and PV-battery systems. It develops a comprehensive framework that combines an optimization-based energy management system and two stochastic approaches for modeling electricity prices and demand. This study contributes to the literature by providing a critical analysis of the financial impact of net metering and net billing on the acceptance and uptake of PV-only and PV-battery systems.