PROSUMER DILEMMA: DOES CHOOSING NET BILLING LOWER HOUSEHOLD ELECTRICITY COSTS?

Aim: The study generates information about the expected electricity costs under several scenarios including PV panel and storage battery additions using the case of a rural prosumer operating a micro-PV installation and faced with a decision to switch to the new net-billing (NB) system or continue with net-metering (NM) (given the new subsidy for a storage battery). Methods: The benchmark data about prosumer electricity production and use and predicted electricity prices for the 15-year period serve to calculate future changes in electricity costs under alternative scenarios, including a household without a micro-PV installation. The prosumer cost for electricity used is calculated using the Levelized Cost of Electricity (LCOE) and the modified LCOEC accounting for consumption (LCOEC). Results: The average electricity price is estimated at 2.33 PLN/kWh in 2037 (almost three times more than in 2022). A similar increase is calculated for prices using the G12 tariff applied to households. The prosumer flexibility in electricity self-consumption determines the advantage of a storage battery, but the subsidy for a micro-PV installation is crucial. Without the subsidy, having a micro-PV installation with a storage battery in the NB system would not lower the LCOEC as compared to the NB scenario without storage. Conclusions: The NB system is associated with higher electricity bills than the NM system, although owning a micro-PV installation still lowers electricity costs as compared to a household without it. The adoption of micro-PV installations by households is likely to continue, albeit at a slower rate than in recent years.

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Publication Details

Journal
Acta Scientiarum Polonorum - Oeconomia
Published
2024-09-30
DOI
https://doi.org/10.22630/aspe.2024.23.3.10
Primary Topic
Energy and Environment Impacts
Type
article
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article

PROSUMER DILEMMA: DOES CHOOSING NET BILLING LOWER HOUSEHOLD ELECTRICITY COSTS?

Wojciech J. Florkowski, Anna M. Klepacka, Piotr Mielziuk
Acta Scientiarum Polonorum - Oeconomia
Energy and Environment Impacts
article

PROSUMER DILEMMA: DOES CHOOSING NET BILLING LOWER HOUSEHOLD ELECTRICITY COSTS?

Wojciech J. Florkowski, Anna M. Klepacka, Piotr Mielziuk
article en

Abstract

Aim: The study generates information about the expected electricity costs under several scenarios including PV panel and storage battery additions using the case of a rural prosumer operating a micro-PV installation and faced with a decision to switch to the new net-billing (NB) system or continue with net-metering (NM) (given the new subsidy for a storage battery). Methods: The benchmark data about prosumer electricity production and use and predicted electricity prices for the 15-year period serve to calculate future changes in electricity costs under alternative scenarios, including a household without a micro-PV installation. The prosumer cost for electricity used is calculated using the Levelized Cost of Electricity (LCOE) and the modified LCOEC accounting for consumption (LCOEC). Results: The average electricity price is estimated at 2.33 PLN/kWh in 2037 (almost three times more than in 2022). A similar increase is calculated for prices using the G12 tariff applied to households. The prosumer flexibility in electricity self-consumption determines the advantage of a storage battery, but the subsidy for a micro-PV installation is crucial. Without the subsidy, having a micro-PV installation with a storage battery in the NB system would not lower the LCOEC as compared to the NB scenario without storage. Conclusions: The NB system is associated with higher electricity bills than the NM system, although owning a micro-PV installation still lowers electricity costs as compared to a household without it. The adoption of micro-PV installations by households is likely to continue, albeit at a slower rate than in recent years.

Acta Scientiarum Polonorum - OeconomiaVol. 23(3)
University of Georgia (US), Warsaw University of Life Sciences (PL), Institute of Rural and Agricultural Development (PL), Polish Academy of Sciences (PL)
Openalex Percentile: Top 86%
Energy and Environment Impacts
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PROSUMER DILEMMA: DOES CHOOSING NET BILLING LOWER HOUSEHOLD ELECTRICITY COSTS? — Wojciech J. Florkowski, Anna M. Klepacka, et al. · Acta Scientiarum Polonorum - Oeconomia (2024) | TGRS Research Map | TGRS