Hungarians potentially discouraged from using solar energy due to proposed bill
Hungary’s Energy Minister, Csaba Lantos, has announced significant changes to the accounting system for household solar panels, which will go into effect next year. These changes have the potential to discourage Hungarian citizens from using solar energy and may lead them back to using gas for heating. The announcement was made during the Portfolio Professional conference.
One of the major changes is the introduction of a “Gross Settlement” system. Under this system, unused electricity generated by solar panels and fed into the grid will be purchased by the government at a rate of approximately HUF 5 (EUR 0.013) per kilowatt-hour (kWh). Additionally, households with solar panels will be subject to a reduced quota. When the solar panel does not produce enough electricity, these households will have to buy surplus electricity from the grid, costing them HUF 36 (EUR 0.093) per kWh, up to an annual quota limit of 2,523 kWh. Once they exceed this limit, the price will increase to HUF 70 (EUR 0.18) per kWh.
To support households with surplus electricity generated during the day, a new HUF 75 billion (EUR 193,475,936.63) support scheme will be launched for batteries that can store the excess energy. This stored energy can then be used at night, reducing the reliance on the grid for charging and discharging. Solar systems up to 4 kilowatts will be eligible for battery support, with a capacity of up to 8 kWh. Subsidies of up to 65% of the battery price will be available.
The Hungarian government currently supports solar panels with a performance of up to 4 kilowatts, generating approximately 4,800 kWh annually. However, as solar energy production varies throughout the seasons, the government will purchase surplus electricity at a lower rate of 5 forints per kWh during the summer when 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 will be sold by the government at a higher rate ranging from 36 to 70 forints per kWh.
While the 65% subsidy may seem enticing, the fact that households have to purchase electricity at higher rates during the winter and on cloudy/rainy days may 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 during winter.
The introduction of batteries capable of storing up to 8 kilowatts is beneficial for summer use, as citizens can utilize the stored energy at night. However, any excess energy that cannot be stored in the battery must be sold back to the electricity company at a lower price. This arrangement may not be ideal for households, as they will not be able to generate extra income during the less efficient winter season.
The minister justified the government’s decision by stating that their intention is to encourage households to become self-sufficient rather than relying on building their own power plants.
These changes in the accounting system for household solar panels in Hungary may have a significant impact on the adoption of solar energy by citizens. The reduced rates for surplus electricity and the reliance on purchasing electricity from the grid during certain seasons could discourage homeowners from investing in solar panels.
