Solar Energy Sell-Back Woes: Flemish Households Face Costs
BRUSSELS – May 3, 2024 – Approximately 450,000 households in Flanders are at risk of incurring charges for selling solar energy back to their suppliers. The issue arises from specific energy contracts that penalize consumers, even when the market value of the power is higher. This practice, detailed recently, impacts numerous residents. several suppliers implement these charges, creating financial strain. Experts advise reviewing contracts to mitigate risks, ensuring consumers are informed about their solar energy agreements and potential charges.
Solar Energy Sell-Back Woes: Flemish Households Face Unexpected Costs
A recent study reveals that approximately 450,000 households in Flanders, Belgium, are at risk of incurring charges for the solar energy they sell back to their suppliers.This issue is especially pronounced during sunny summer months when energy oversupply can drive down wholesale prices.
The Core Issue: Paying to Sell Energy
The crux of the problem lies in certain energy contracts that penalize consumers for selling excess solar power back to the grid,even when the market value of that energy is higher.Some suppliers are already implementing these charges.
The Federal Ombudsman Energie has confirmed that some customers are being charged about 1 cent per kilowatt-hour (kWh) for solar power they sell back, despite its actual worth exceeding 4 cents per kWh.
Supplier Practices: A Closer Look
Several energy providers have been identified as engaging in practices that lead to customers paying extra for selling solar power. While some have adjusted their policies, the underlying risk remains for many households.
- Octa+: Currently charges some customers for returning solar power when wholesale prices are high enough.
- Energie.be: Previously charged extra costs but now pays 0 euros for purchased electricity as of April.
- Eneco: In 2024, customers reportedly paid an average of 90 euros for the solar power they sold back. The supplier has since adjusted its practices.
Contractual Fine Print: The Devil is in the Details
An analysis of 86 energy contracts available in Flanders revealed that the majority contain clauses requiring customers to repay money for solar power beyond a certain threshold. These formulas are often hidden within the contract terms, making it arduous for consumers to anticipate these charges.
Carefully review your energy contract for clauses related to “return delivery” or “injection fees.” Pay close attention to the conditions under which you might be charged for selling solar power back to the grid.
The Risk Factors: Sunny Days and Oversupply
The likelihood of incurring these charges increases during sunny periods when solar energy production surges,potentially leading to an oversupply in the market. This oversupply can drive down wholesale prices,triggering the contractual clauses that penalize consumers.
Expert Insight
As the wholesale prices are currently high enough, as stated, only Octa+ currently charges some customers at the moment to return solar power. Yet many thousands of households are still running the risk of having to pay extra this summer, especially when it becomes a sunny summer. Sunny weather increases the chance of an oversup range on the market on the market.
