Capacity Charge

Can photovoltaics reduce our electricity bills?

Recent years have brought changes in the electricity market, introducing new charges and regulations. One of them is the capacity charge, which has been part of our electricity bills since January 2021. What are its consequences for consumers, and are there ways to reduce it? Let's explore these issues, focusing particularly on the potential of photovoltaics.

Capacity Charge: What is it and how does it affect our electricity bills?

The capacity charge is a part of our electricity bill designed to ensure energy security by financing the maintenance of flexible power reserves. Introduced under the capacity market law, it also aims to modernize existing power plants and build new ones. From January 2023, the capacity charge began to be settled on a decadal basis, changing the method of calculation for some tariff groups.

Capacity charge rates for the year 2023

According to data from September 30, 2023, the capacity charge rates are as follows:

• 2.38 PLN net for consumption less than 500 kWh (1 grosz more compared to 2022),

• 5.72 PLN net for consumption from 500 kWh to 1200 kWh (4 grosze more compared to 2022),

• 9.54 PLN net for consumption above 1200 kWh up to 2800 kWh (8 groszy more compared to 2022),

• 13.35 PLN net for consumption above 2800 kWh (10 groszy more compared to 2022).

For other consumers, the capacity charge rate will depend on the amount of electricity consumed from the grid during selected hours of the day (on working days from 7:00 to 21:59). It will be 0.1024 PLN/kWh (2 grosze less than in 2022).

Rising electricity prices and the capacity charge: How does it relate to our wallets?

With the introduction of the capacity charge, electricity prices have also risen. Despite consumers' concerns that this charge would generate additional costs, analyzing data from 2022 and 2023, it can be stated that the capacity charge rates have changed slightly. Although in 2023 the average consumer might expect a slight increase compared to the previous year, these differences are not significant.

Photovoltaics as a way to reduce the capacity charge

In the face of rising electricity costs, more and more people are considering investing in photovoltaics. Photovoltaic installations allow for the production of one's own electricity from solar radiation, which can significantly reduce dependence on the electrical grid and influence lower electricity bills.

How do photovoltaic installations work?

Photovoltaic panels convert solar energy into electricity, which can power household appliances. The generated energy first covers current demand, which limits the amount of electricity drawn from the grid. Consequently, the capacity charge, which depends on the amount of energy taken from the grid, can be significantly reduced.

Benefits for households and businesses

Installing photovoltaics can bring benefits to both households and businesses. Reducing electricity consumption by utilizing one's own source of solar energy can effectively decrease charges, including the capacity charge. For companies that produce larger amounts of energy, photovoltaic installations can be particularly profitable, allowing for a reduction in operating costs.

Summary

The capacity charge introduced in the energy market, along with other regulations, has brought new challenges for consumers. However, investing in photovoltaics can be an effective response to rising electricity costs. By producing one's own energy from a renewable source, one can reduce dependence on the electrical grid

and lower electricity bills, including the capacity charge. In the face of climate change and rising energy costs, photovoltaics is becoming not only an environmental but also an economic choice for consumers.