Many Estonian entrepreneurs are faced with the question of how to reduce increased electricity costs. One option is to start producing your own electricity using solar energy. You can sell the produced electricity to Eesti Energia and earn income.
Until now, producers have had the Variable Package, meaning that the purchase price of generated electricity has been based on the Nord Pool Spot electricity exchange. But now a new option has been added: Fixed Package, which gives companies the opportunity to sell their output to the power network based on a fixed price list.
By choosing the Fixed Package, producers will receive corresponding certificates of origin, publicly offered on the market only by Eesti Energia. Certificates are used to prove that the producer’s electricity comes from a renewable energy source or is created in an efficient cogeneration mode.
Each MWh produced equals one certificate. When selling the certificates of origin to Eesti Energia, the price of the Fixed Package also includes the cost of the certificates of origin.
How is the fixed price formed?
As mentioned, the current Variable Package is largely based on exchange prices. The Fixed Package, on the other hand, uses the prices of future transactions related to the electricity market. It is possible to conclude a contract for 12 months up to 4 years. Therefore, regardless of whether the market fluctuates up or down, the selling price of your output remains the same for you throughout the entire contract period.
I would like a fixed-price package – what do I need to do?
To get the Fixed Package, it is important that:
- You are a legal entity;
- You have a ready-made solar park;
- You are not a consumer at the same point of consumption.
NB! Consumption is allowed only to supply electricity production devices, including the inverter, if the production device is not producing.
If these conditions are met, then in order to start selling, you must first sign a connection agreement, the validity of which requires an existing network agreement. A connection agreement can only be concluded with the same energy seller from whom you buy electricity for your own use. In addition to the connection and network agreements, it is necessary to conclude a third – an electricity buyback agreement.
Fixed vs Variable – which package should I choose?
When choosing a package, you should primarily be guided by your personal possibilities, wishes and goals. The main features that distinguish the two packages are price development, price stability, and contract period.
Consume wisely, produce wisely. More information on getting started with electricity production is available on our website.