What self-consumption is: Everything you need to know

What is self-consumption?

This is the ability to produce your own electricity through solar panels and in the same place where you are going to consume it, in your home or business.

Regulation of self-consumption

Self-consumption in Spain is regulated by Royal Decrees 15/2018 and 244/2019, which establish the administrative, technical and economic conditions for the self-consumption of electricity. In addition, it simplifies both its individual and collective forms, as well as the mechanism for compensating surplus energy:

• It can be collective and shared among several consumers under certain conditions, including that the supplies are located within 1,000 metres of the generation facility.
• It regulates supplies with simplified remuneration for surpluses, which enables the energy that is not consumed and fed into the grid to be remunerated simply in each consumer's own bill.

What do I need to make a self-consumption photovoltaic installation?

It is much easier than you would think to equip yourself with a photovoltaic self-consumption installation. All you really need is:

• A space big enough to install one or more solar panels. If you would like to install solar panels and still do not know how, Endesa we help you with the installation of photovoltaic panels.
• An inverter to convert direct to alternating current with the corresponding connection to the photovoltaic panels.

But to get the most out of your photovoltaic self-consumption installation, you could also add the following:

• An accumulation battery to store any energy generated by your solar panels that is left over after your daily consumption.
• A charger for electric vehicles. So you can charge your vehicle with your own self-generated electricity.

Main advantages of solar self-consumption

• Sustainability: with a solar self-consumption installation you are contributing to energy transition, avoiding emissions into the atmosphere by using renewable, inexhaustible and environmentally friendly energies. As the energy passes directly from the system to your accumulator, energy loss in transport is also avoided. Moreover, by consuming the energy at the place of production, the energy is better utilised, and transport losses are avoided.
• Savings: you can save more than 50% on your electricity bill by installing self-consumption solar panels on your single-family home. It is important to know that the more your consumption profile matches your production profile, the more savings you will make. Once you amortise the initial investment, you may find yourself in a situation where: producing your own energy is cheaper than buying it.
• The initial investment pays off quickly: obviously, equipping your home with a self-consumption system requires an investment. However, your installation will pay for itself from day one, thanks to the savings on your bill. According to our calculations, it will be fully amortised in less than ten years, and with the current subsidies for self-consumption, this period can be reduced to less than five years.
• Additional advantages: the Central Government and most regional authorities are actively supporting self-consumption, support and significant tax advantages. This support can be as much as 40% of the investment, reductions of up to half of the property tax for several years and deductions in the personal income tax of the home where the self-consumption installation has been invested.

Self-consumption categories: What are they?

There are a number of types of regulated self-consumption: Self-consumption can be individual or collective, with or without surpluses, and whether or not it is covered by the simplified compensation mechanism.

Self-consumption supply without surpluses

With this option, your installation has a zero-injection device, which prevents non-self-consumed energy from being injected into the power grid.

This is often complemented by installing a battery storage system to maximise the use of the energy produced.

Self-consumption supply with surpluses

In contrast to the previous case, the energy you produce anddo not consume will be injected into the transport and distribution grid to be used by other consumers. The energy injected is called surplus energy. 

There are two ways you can take advantage of it:

1. You can opt for the 'simplified compensation for surplus in bill' option, which means that your energy supplier will compensate you for the surplus in the form of savings on your electricity bill, month by month. The amount you save depends on the kWh fed back into the grid and the compensation price applied.

Last resort suppliers (those offering regulated rates) are legally required to define the economic value of those surpluses. In the case of free-market suppliers, the compensation depends on the terms you agree upon with the supplier.

However, this amount cannot exceed the so-called compensation limit, which means that you cannot be compensated financially for your kWh fed back into the grid at a value higher than that of the kWh you have consumed from the grid.

There are some prerequisites to be able to choose this option:

• The total capacity of the production installations cannot exceed 100 kW.
• The energy source must be renewable.
• The consumer and the producer must enter into a surplus compensation contract.
• If it is necessary to establish a supply contract for auxiliary production services, the consumer must have signed a single supply contract for the associated consumption and for the auxiliary production consumptions with a commercial supplier.
• The production installation must not have been granted an additional or specific remuneration regime. 

2. Opting for self-consumption with surpluses without simplified compensation allows you to sell all your surpluses without a monthly limit. However, it means registering as an energy producer and dealing with fiscal and administrative procedures, because it is classed as an economic activity.

In this case, you will receive the corresponding economic compensation for the surplus energy fed back into the grid according to the regulations in force.

How to contract a self-consumption tariff with Endesa

If you are interested in self-consumption, there are two possible situations:

• You don't have your photovoltaic system yet: in this case, we recommend a comprehensive solution that takes care of the installation, the management of administrative procedures and financial support, maintenance and even financing.
• You already have your photovoltaic installation: in this case, we recommend the best tariff to get on board with clean energy. Choose Endesa Solar and start saving.