New bill may discourage Hungarians from using solar energy

Energy Minister Csaba Lantos has unveiled massive changes to the accounting system for household solar panels, set to take effect next year. These new elements have the potential to discourage Hungarian citizens from using solar energy and may lead them back to gas heating. The changes were announced during the Portfolio Professional conference.

Gross Settlement

According to G7, the so-called Gross Settlement change introduces several alterations in the government’s approach to supporting solar energy for citizens. The new changes include:

• Unused electricity generated by the solar panels and fed into the grid will be purchased at a rate of approximately HUF 5 (EUR 0.013) per kWh
• Solar Households will be subject to a reduced quota. When the solar panel does not produce enough, these households will have to buy surplus electricity from the grid, which will cost HUF 36 (EUR 0.093) per kWh up to the annual quota limit of 2,523 kWh
• Once the household exceeds that limit, the price will jump to HUF 70 (EUR 0.18) per kWh
• A new HUF 75 billion (EUR 193,475,936.63) support scheme will be launched for batteries, which will store surplus electricity generated during the day. This supply can be used at night, therefore, households do not have to rely solely on charging and discharging from the grid
• Battery support will be available for solar systems up to 4 kilowatts, and the battery capacity will be up to 8 kWh
• Subsidies of up to 65% of the battery price will be available.

Read also: Electricity is the world’s second cheapest in Hungary!

Changes in solar energy purchase

The Hungarian government supports solar panels with a performance of up to 4 kilowatts, which generate approximately 4,800 kWh annually. However, since solar energy production can differ throughout the seasons, the government can purchase surplus electricity from households at a lower rate, such as 5 forints per kWh, during the summer when the solar production is high. Conversely, in the winter when solar panels may not meet the required demand, households will need to purchase electricity from the grid, which the government can sell at a higher rate, ranging from 36 to 70 Forints per kWh.

Thanks to the 65% subsidise, the price of a 4 kWh solar panel can be reduced from HUF 1.5 million (EUR 3,869.52) to just HUF 500,000 (EUR 1289.84). While this may seem like a good deal, the fact that households have to purchase electricity for 36 to 70 forints per kWh during the winter season and on rainy/cloudy days can discourage citizens from transitioning to solar energy. Solar panels can only produce up to 4-5 kWh in ideal conditions, which may not be sufficient for heating in winter time.

The batteries can hold up to 8 kilowatts, which is ideal for the summer use when citizens can utilise the stored energy at night. Any excess energy that cannot be stored in the battery must be sold to the electricity company. This cycle can continue throughout the summer, allowing the company to purchase the remaining energy at a low price.

This is less than ideal for households since lowering the selling price to HUF 5, even though the purchase price remains at around HUF 30, will prevent them from generating extra income for the winter season when solar panels are less efficient. The minister justified the government’s decision by saying, “we intend to encourage households to become self-sufficient not to build their own power plants”.

Read also: Fidesz MP calls for rethink of solar panels regulations

Author: István Martin Németh

Source: g7.hu