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Prospects for installation and utilization of rooftop solar photovoltaics in the CEE

CMS Guide

This Guide gives an overview of the prospects for installation and utilization of rooftop solar photovoltaics in selected CEE countries. You can download the PDF with the country specific parts in the download section.


The world is in turmoil. We are witnessing record-high fossil fuel prices as well as higher pollution levels than ever before. At the same time, encouraged by the COP26 summit and due to increased public awareness on the benefits of rapid energy transition, a number of countries have already committed to phase out coal-fired power generation and continue adding more renewables to their current energy mix.

Consequently, more and more individuals and organisations around the world are taking their first steps in assessing the best options for reducing their carbon footprint. These are supposed to secure the production of electricity at relatively predictable prices, enable less dependence on electricity produced from coal and other fossil fuels, and reduce the overall costs of doing business. Arguably, one potentially beneficial way of achieving these goals is the installation of rooftop solar panels (rooftop PVs) and net metering.

What is net metering?

Net metering is usually defined as a simple billing arrangement in which surplus energy produced from rooftop PVs is measured by an endconsumer’s electricity provider and subtracted from its monthly electricity bill. When end-consumer’s electricity production is higher than its electricity consumption, the excess generation is fed back into the grid.

How does net metering work in practice?

Generally speaking, net metering is based on giving the end-consumer credit for feeding electricity produced from its rooftop PVs to the grid, as well as on offsetting the electricity it takes from the utility in the future. Thereby the end-consumer is given the full economic value of all the electricity its rooftop PVs has produced, which results in a reduction of its electricity costs. At the end of each billing period, the utility calculates the difference between how much electricity the end-consumer fed into the grid and how much electricity is actually delivered to the end-consumer from the grid, in order to determine its net consumption. Depending on regulations and local utility’s policies, surplus electricity can be either fully credited, i.e., at a retail price for each kWh sent back to the grid, or credited at a lower rate, ranging from retail to the wholesale price of electricity paid on the relevant market. 

Solar panels

Why is net metering attractive?

Reduction of end-consumer’s electricity costs
With installed rooftop PVs and a net metering system in place, it is possible to reduce an end-consumer’s annual electricity cost to zero. In order to do so, an end-consumer should aim to install appropriately sized rooftop solar PVs whose annual electricity production covers the end-consumer’s annual electricity consumption, if possible.

Protecting the grid and reducing the strain on Distribution & Transmission Infrastructure
Net metering policies lower the demand for electricity and allow utilities to better manage their peak electricity loads. In addition, by encouraging electricity production near the point of consumption, net metering reduces the strain on distribution systems and prevents losses in long-distance electricity transmission and distribution, which in some CEE countries amounts to up to 10% of total electricity produced.

Securing viable alternatives to electricity produced from fossil fuels at predictable prices
The Report on Renewable Power Generation Costs prepared by the International Renewable Energy Agency clearly indicates that solar and wind power production is cheaper than fossil fuels. Importantly, while fossil-fuel electricity has become more expensive in recent months, the cost of electricity produced from wind and solar appears to be stable, which could indicate that an electricity system that is predominantly based on renewables is less subject to price volatility.

Reduction of environmental risks associated with production of electricity from fossil fuels
By installing rooftop PVs and net metering, various societal benefits could be achieved, such as reduced air pollution and air quality control, which is a significant problem in several CEE countries, in particular during the winter season.

What are potential drawbacks of the model?

On the other hand, the most significant drawbacks are the relatively high costs of installing solar PVs and the risk of overloading the D&T system during the summer peaks in production.

However, based on available statistics, costs associated with rooftop PV installation have fallen 82% since 2010, and, according to latest estimates, they are expected to decrease even further – approximately 59% by 2025 (source: International Renewable Energy Agency). In addition, most countries offer subsidies for the installation of rooftop PVs, as well as other benefits to end-consumers, making this technology even more cost-effective.

Finally, greater expansion of rooftop PVs could have negative effects on the D&T networks (including reverse power flow, voltage fluctuations, power losses, etc). Some of those negative effects could be mitigated by timely investments in the D&T infrastructure. The solar potential in many CEE countries is particularly high and more and more of them are beginning to use this potential.

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Prospects for installation and utilization of rooftop solar photovoltaics in the CEE
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