Electrical self-consumption

A closer look at electricity self-consumption: individual, collective, or extended, including the rules, support mechanisms, and administrative procedures you need to know.

Marie Jamain
Consultante HSE
Publication : 
23.09.2024
Table of Contents
Example H2
Request a demo

Please note: This article concerns French legislation. The requirements described may not apply in other countries.

‍

In accordance with the Energy Transition for Green Growth Act, Ordinance No. 2016-1019 of July 27, 2016, established a legal framework for electricity self-consumption within the Energy Code.

Today, we’re taking a closer look at these operations!

Self-consumption

An individual self-consumption operation occurs when a producer consumes all or part of the electricity generated by their own installation (e.g., solar or wind power) on the same site.

This self-consumption can be total or partial:

  • If production is low, the electricity generated is consumed on-site, and the user must rely on the public grid to meet their remaining energy needs.
  • If production exceeds demand, the surplus is fed back into the public grid.

Individual self-consumption can also apply to charging infrastructure for electric and hybrid vehicles.

schéma autoconsommation

Collective self-consumption

A self-consumption operation is considered collective when electricity is supplied between one or more producers and one or more end consumers linked through a legal entity, provided their withdrawal and injection points are located downstream of the same public medium-to-low voltage transformer substation. Since the structures are quite flexible, associations or cooperatives can also participate.

The conditions for implementing this system have been clarified. Specifically, they:

  • Require this operation to be governed by a contract between the relevant public distribution network operator and the legal entity organizing the operation.
  • And set a maximum installed capacity of 3 kW for installations required to feed their surplus electricity into the grid if it is not sold to a third party.
schéma autoconsommation collective

Extended collective self-consumption

The Energy Code allows for collective self-consumption operations involving more distant participants, provided the following criteria are met:

  • They are connected to the low-voltage network of a single public electricity distribution network operator,
  • and the distance between the two furthest participants does not exceed two kilometers.

Upon request, the minister responsible for energy may grant a derogation to this distance within a limit of twenty kilometers , taking into account in particular the isolation of the site and its low population density.

The cumulative power of the production facilities is less than:

  • 3 MW in mainland France;
  • 0.5 MW in non-interconnected zones.

*For solar energy, the power considered is the peak power.

💡 It is generally estimated that around 5m2 is needed per 1kWp of electricity.
A 500m2 area of photovoltaic solar panels represents an output of roughly 100kWp. These figures vary depending on the output of each module, along with factors such as its tilt, orientation and the region's sunshine levels.

In the event of surplus electricity being fed back into the grid, there are two support mechanisms for remunerating producers: the feed-in tariff and the feed-in premium. These are awarded either via an open-window system (with tariff levels defined in tariff orders) or through competitive bidding processes (see link at the end of the article).

Feed-in tariff and feed-in premium

Obligation

The feed-in tariff is a support mechanism that consists of the purchase of electricity produced by an authorized supplier, regardless of the wholesale electricity market price. It applies, for example, to photovoltaic panel installations with an installed capacity of ≤ 500 kWp. To benefit from the feed-in tariff for the electricity they produce, operators must apply to EDF or the local distribution company. Contracts are set for a duration of 15 to 20 years. With few exceptions, it is only possible to benefit from a feed-in tariff contract once.

For electricity production facilities with an installed capacity not exceeding 3kW and which are in surplus, the surplus electricity produced is not subject to the feed-in tariff mechanism. It is transferred free of charge to the grid operator to which the production facility is connected. These injections are then allocated to the technical losses of that grid (L. 315-5 and D.315-10).

Feed-in premium:

The feed-in premium is a bonus paid to a renewable energy producer in addition to the sale of the electricity they have produced on the market. Interested producers must apply to EDF, which is required to enter into a contract offering a feed-in premium (for installations located in mainland France).

It concerns larger renewable electricity producers (≥ 500kW), and contracts are set for a duration not exceeding 20 years. Except for specific derogations, renewable energy production facilities can only benefit from the feed-in premium once.

Main tariff orders allowing for preferential purchase conditions for the energy produced:

These orders, as well as the standard purchase contract templates, can be consulted on the website of the Ministry of Ecological Transition and Territorial Cohesion.

Sector Order reference Official Journal date Last amendment Scope of application Scheme concerned
Solar PV Order of 6 October 2021 08/10/2021 Order of 5 March 2024 Installations on buildings, barns or canopies, located in mainland France

Output < 500 kWp

Contract term: 20 years

For installations not yet covered by a mandatory purchase contract. 		Mandatory purchase
Order of 23 April 2018 18/05/2018 Installations in mainland France

500 kWp ≤ Output < 12MWp

for which a complete grid connection application was submitted between 1 January 2016 and 30 May 2016 to obtain a purchase contract 		Feed-in premium
Order of 5 January 2024 17/01/2024 Installations on buildings, barns or canopies

Output ≤ 500 kWp

located in non-interconnected zones, notably Corsica, Guadeloupe, French Guiana, Martinique, Mayotte, Réunion, Wallis and Futuna, Saint-Pierre-et-Miquelon and certain islands off Brittany

Contract term: 20 years 		Mandatory purchase
Wind Order of 9 April 2020 11/04/2020 Floating installations selected as winners of:
– a call for projects under the "Investments for the Future" programme
– or a European call for projects, located on the public maritime domain or in the exclusive economic zone of mainland France

Contract term: 20 years 		Mandatory purchase
Order of 6 May 2017 10/05/2017 Order of 29 December 2022 Onshore installations with no more than 6 turbines with an output > 3MWp per turbine, subject to aviation-related height restrictions or controlled by individuals, local authorities or their associations Feed-in premium
Order of 8 March 2013 03/04/2013 Order of 24 October 2023 Applicable to onshore wind in the French overseas departments (excluding French Guiana) exposed to cyclone risk

Contract term: 15 years 		Mandatory purchase

Financial support:

A self-consumption bonus is defined by the tariff order of October 6, 2021, for installations under 100kWp that sell surplus energy back to the grid. The application for the self-consumption bonus is processed automatically when the photovoltaic system is connected to the distribution network.

Installations under 3kW are eligible for tax benefits.

Regional subsidies may also be available. Specifically for the development of photovoltaics, an association-led platform supported by ADEME and the government has been created (see link at the end of the article).

However, outside of specific programs for households or the agricultural sector, most projects are not eligible for Energy Savings Certificates (CEE).

Key administrative procedures for photovoltaic installations:

  • Prior declaration of works: This is mandatory for ground-mounted installations with a capacity between 3kWp and 250kWp located outside of a protected area (or < 3kWp in a protected area). It is also mandatory for all rooftop installations.
  • Building permit application: This is mandatory for ground-mounted installations with a capacity greater than 250kWp located outside of a protected area, or greater than 3kWp in a protected area.
  • Connection request: If you intend to sell surplus production, a connection request must be submitted to the grid operator.
  • Consuel certificate: This certificate validates the compliance of your installation before it is connected to the electricity distribution network.

Furthermore, even if no planning permission is required, you should check for any local installation regulations, such as the Local Urban Plan (PLU) or the Land Use Plan (POS).

Under the Environmental Code, other procedures must be considered. Consequently, with the exception of rooftop or parking canopy installations, projects are subject to:

  • Environmental assessment for installations with a capacity of 1MWp or more, excluding parking canopy installations;
  • Case-by-case review for installations with a capacity of 300kWp or more;

‍

‍

Learn more:

‍

Photo credit: 648812482 @Sasint