See the pros and cons of subscription solar energy – 06/16/2023 – Market

The subscription solar energy model can generate discounts of 10% to 20% on consumers’ electricity bills, and it is possible to choose the company that offers the best conditions. Some allow you to cancel the service whenever you want, without fines.

However, Idec (Brazilian Institute of Consumer Protection) criticizes the fact that the model receives subsidized incentives by captive consumers, via the CDE (Energy Development Account).

Captive consumer is the one who uses the electricity supplied by the distributor that holds the concession to operate in an area, that is, the conventional supply. This consumer, depending on the region in which he lives, has no option to choose. The CDE is a charge that is also paid by the Union, but largely by all consumers on electricity bills.

For Anton Schwyter, coordinator of Idec’s Energy Program, it is necessary to review the subsidy granted to distributed generation.

“Idec is in favor of the diversity of the energy matrix and the use of renewable sources, and understands that the CDE is important. However, the way the subsidy is placed, the person who migrates to distributed generation has benefits, but who pays the incentive are the captive consumers”, he says.

“In the long term, as the number of people who leave the captive consumer model and adopt distributed generation increases, those who remain will bear this cost”, says the Idec coordinator.

Subscription solar energy is part of the shared generation market, one of the forms of distributed generation, and is regulated by Law 13,400 of 2022, the legal framework for distributed micro and mini-generation.

In this market, consumer units such as homes, condominiums or businesses can use shared solar energy produced by generating units such as solar farms.

In practice, the consumer, individual or legal entity, enjoys part of the energy produced by companies that have farms or solar plants. This energy generates a surplus in the form of credits, which allows monthly reductions in the electricity bill.

“From the consumer’s point of view, the operation consists only of ‘signing paper’. No investment is required on the part of the person hiring and will benefit. The attraction is the reduction of the monthly electricity bill, with savings that fluctuate around 18%”, says Augusto Francisco da Silva, president of Asceel (Brazilian Association of Electric Energy Consumers).

This service has grown in Brazil. In 2015, the year in which the shared generation model was created in the country, there were 45 consumer units in Brazil. In 2021, the service reached 5,704 customers. The following year, it more than doubled to 11,712. Until April of this year, 14,581 consumers were identified – an increase of 24% compared to 2022.

The energy consumed by shared generation —117 MW (megaWatts) in installed capacity, in total— is supplied by 5,141 installations. The data are from Absolar (Brazilian Association of Photovoltaic Solar Energy).

This is still a small market and represents less than 0.1% of all captive consumers in Brazil. In all, captives exceeded 90.5 million in 2022, according to the 2023 Electric Energy Statistical Yearbook, released by EPE (Empresa de Pesquisa Energética).

Marco Souto, a graduate professor specializing in energy efficiency, explains that the model works well for consumers with low voltage demand. Any natural or legal person that is in the same area of ​​the company can migrate to the subscription.

“Consumer and company need to be customers of the same distributor. That’s why there’s the area issue. The place where Enel is located, in São Paulo, is expensive for companies. In Campinas, on the other hand, [área coberta pela CPFL]for example, the cost is lower and there are places where it is possible to set up solar farms for energy generation”, he says.

One of the companies operating in the distributed generation market is Esfera Energia. The company serves residences and businesses with low-voltage electricity bills, in the service region of Cemig, in Minas Gerais, and CPFL Paulista in the interior of São Paulo.

“Subscribing to the platform is free, with no loyalty or fines. Consumers can hire clean energy generated by small producers in Minas Gerais and São Paulo”, says Guilherme Esperidião, Esfera’s Vice President of Customer Acquisition and Business Transformation.

According to the executive, savings on the electricity bill reach 16%. Consumers whose average electricity bill in the last six months is at least BRL 150 can contract the service.

Another company that operates in the sector, but in a different way, is Lemon Energia. The startup, which has more than 5,000 customers in six states, intends to double its base by the end of the year and builds a bridge between the plants and the consumer.

“Lemon does not build the plants or distribute energy, which continues to arrive through the local distributor. What Lemon does is ensure that energy credits are deducted from the consumer’s bill”, explains Rafael Vignoli, the company’s CEO.

Discounts range from 10% to 20%, depending on the region. The company serves small and medium-sized businesses, in addition to some residential condominiums that use a CNPJ in the contract. In the future, individuals will also be able to join the service.

The company goes beyond photovoltaic energy, covering biogas plants and small hydroelectric plants. Consumers with an electricity bill of at least R$500 can subscribe to the service. Bars, restaurants, small supermarkets and other services related to the food sector, in general, fit into this demand, according to Vignoli.

Luz, a startup from the Delta Energia group, seeks to combine technology with savings, using an application that shows customer spending in real time. Meters are installed on the consumer’s light board. Connected to the Wi-Fi network, they transmit information to the app.

The company operates in 234 cities supplied by CPFL Paulista, in the interior of São Paulo. Other municipalities on the coast of São Paulo and Mato Grosso do Sul, in addition to Brasília, areas of the Neoenergia group, are also contemplated.

The startup intends to build, by 2024, 50 solar farms to meet the initial demand, according to Rafael Maia, CEO. Individuals and small and medium-sized businesses with low voltage demand, with electricity bills of up to R$ 10,000, can subscribe.