Negative energy prices
Challenge and opportunity for companies with solar panels
In 2024, Belgian power producers recorded more than 400 hours with negative power prices. That is almost double the previous year’s figure. Negative energy prices have significant consequences for companies that invested in solar panels on their roofs. As a producer , you pay to put power on the grid.
At Bnewable, we provide solutions to companies that have invested heavily in solar panels. We hear almost daily how negative energy prices are impacting companies’ investments. The solution: those who choose smart energy storage and automated energy management turn these challenges into opportunities.
What are negative energy prices?
Negative energy prices occur when the supply of electricity exceeds demand. This happens especially at times when there is a lot of sun or wind, and little consumption. On sunny weekends, solar roofs run at full capacity, but the production hall remains empty and machines lie idle.
When we produce more electricity than we consume, the grid becomes saturated. Producers then have to pay to still get rid of their surplus electricity. We call this negative injection pricing. So instead of earning on your green energy, you turn a loss. And that, of course, is the last thing you want as a company with a “photovoltaic” or PV installation.
Various causes of negative energy prices
- Increase in renewable energy: solar energy production grew to nearly 11 GWp in Belgium by 2024.
- Mandatory installation of solar panels: new regulations require large companies to install solar panels, leading to additional power on the grid.
- Limited grid flexibility: surpluses occur because the power grid does not respond quickly enough to fluctuations in supply and demand.
The impact on your profitability
Good day sunshine? That no longer always holds true for PV system owners. If your solar panels continue to produce power at times of negative prices, you will make a loss. For an average business with a solid area of solar panels, that can add up considerably.
The math is simple: the more often you produce when there is already a surplus, the less your investment will yield and the longer it will take to recoup. Moreover, it increases the risk that you’ll even have to pay to inject your power surplus. So without smart control or storage, you’re left with a profitability problem.
Solutions: optimization of self-comsumption.
According to Belgian transmission system operator Elia, more flexibility is urgently needed on the grid. And that flexibility starts … with you, the producer. At Bnewable, we offer solutions to minimize the impact of negative energy prices.
Energy storage
Bnewable offers you the opportunity to have a companybattery/battery farm installed. When your solar panels produce more than you consume, we send the excess production to the battery. That way you inject minimal power into the grid when you have to pay for it. At the same time, as few kilowatts as possible are lost. You use the stored energy later, when the sun isn’t shining or electricity is expensive. Maximum self-consumption and no injection costs: win-win.
Energy Management
Bnewable developed its own energy management system, Voltana. With it, we automatically optimize the operation of your battery(s). Voltana tracks energy prices in real time and controls the battery at all times for optimal efficiency. Our EMS takes care of peak shaving and sells your power when it pays the most. This way you also generate extra income
Here’s how to get something positive out of negative energy prices
The energy market is changing at lightning speed. What was profitable yesterday is no longer so today. Due to negative energy prices, it no longer pays to generate “as much as possible.” It’s now about being smart about your production. Without an energy storage and management strategy, you run the risk of unforeseen costs and diminishing returns.
With the right approach, you can make your solar investment future-proof. Invest in local battery storage and smart energy control to optimize your self-consumption and ensure the profitability of your PV installations.
Bnewable, first aid for negative power prices
At Bnewable, we combine technical expertise with a pragmatic approach. We analyze your consumption profile, evaluate the impact of negative energy prices on your site and propose a customized optimization strategy. This way, we not only help you avoid costs, but also take advantage of new opportunities.
Negative energy prices don’t have to be a problem – if you anticipate them smartly. Want to make sure your PV installation remains profitable, even in this rapidly changing market? Find out what a battery and smart PV optimization can do for your business. Contact Bnewable for a no-obligation consultation.