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Self-consumption and electricity sharing

Energy
Craft Industry
[ Detailed version of the measure ]
Last update: 05/09/2024
  • Available tools
  • Possibility of assistance

To make this measure more effective and tailored to the specific context of your company, we recommend that you first perform an overall analysis of your energy situation.

Promoting self-consumption and electricity sharing within your company

Self-consumption refers to using the electricity that you generate on your own. This approach helps you become less reliant on the energy market and suppliers, insulating you from price fluctuations. For instance, by installing solar panels, you can produce renewable electricity that meets your company’s electrical needs, whether it’s for lighting, powering an EV-charging station, or running other appliances. Additionally, this self-produced energy can also be used to power larger systems like heat pumps.

The following article provides an overview of various self-consumption methods, highlighting their benefits and drawbacks, along with the necessary procedures, available subsidies, and relevant measures.

Technical specifications of self-consumption systems

Self-consumption refers to the direct use of electricity generated by the company itself. By opting for this approach, you can cover part of your electricity needs by producing your own renewable energy. Among renewable energy solutions, photovoltaics (electricity produced from solar energy) is currently the most accessible for most businesses. Self-consumption is therefore a key element in the energy transition.

The self-consumption rate represents the percentage of electricity that is produced and used directly on site. The goal is to maximise this rate by aligning energy consumption as closely as possible with energy production. To do this, it is crucial to adjust electricity consumption patterns to coincide with periods of production, aiming for simultaneity between the two. Intelligent demand-side management (DSM) systems can help optimize this process by identifying the most advantageous times to use energy. Additionally, installing storage batteries allows you to store photovoltaic energy for use during non-production hours.

Cette illustration montre le point d'entrée et le point d'autoconsommation de la production photovoltaïque. L'électricité produite par les panneaux solaires sur le toit est transférée via un onduleur, passe par le compteur de consommation et est ensuite distribuée aux différents consommateurs à l'intérieur de la maison, tels qu'une station de charge ou les appareils alimentés par les prises électriques. Tout surplus d'énergie produite est transféré au réseau public et calculé par le compteur.

Self-consumption should not be confused with self-sufficiency, which involves covering 100% of your electricity needs with your own production. Achieving self-sufficiency requires designing and sizing an installation capable of meeting all your electricity demands at all times. However, since most consumers remain connected to the electricity grid, pursuing self-sufficiency can be very costly and is often not a practical or necessary approach.

Definition of the requirements

If a company produces energy, it can also consume it. There are various ways of consuming or sharing your company’s production.

Analysing the potential for self-cosumption and electricity sharing

The different types of self-consumption

Individual self-consumption

The electricity generated by a building is used directly by its occupants, making the energy producer and consumer the same entity. To maximize the self-consumption rate, it’s important to align energy use as closely as possible with production. If there is surplus electricity, it can either be fed into the grid or stored for later use—either in a solar battery or by powering equipment like a heat pump that charges a buffer tank. Any electricity fed into the grid is compensated at the wholesale market price for that month. During times when production is low or absent, you can draw on stored energy or rely on the electricity grid.

Collective self-consumption

Collective self-consumption means sharing the produced energy:

  • within a condominium (several network users in the same building, behind a single connection point) ;
  • between neighbours (maximum of three network users), where the distance between the two furthest injection or withdrawal points does not exceed 100 metres;
  • or in the specific case of a network user with several supply points (e.g. an agricultural, craft or industrial establishment).

Collective self-consumption is only possible with a single low-voltage electricity grid operator. The first two cases are exempt from the grid usage tax for shared electricity, and the third case is only exempt if the maximum distance of 100 metres is respected.

The energy is shared based on an allocation scheme to be defined between the members of the sharing group. Agreements must be drawn up with the grid operator and between the members of the sharing group to set up this distribution.

Energy community

An energy community is possible in two scenarios

  • the local energy community (sharing of renewable energy when the distance between the two furthest points of injection or withdrawal does not exceed 300 metres, and exemption from network use tax, a single electricity network operator and low voltage)
  • the national energy community (without geographical restrictions, but without exemption from the grid usage tax).

By law, an energy community must be set up as a legal entity. With the exception of large companies, any private or legal entity, including public organisations, is eligible. All types of business are permitted. The production plants ( possibly at national level) can be joint or individual.

Implementation of the self-consumption system

Procedural steps

Individual self-consumption

  • Simple request to the grid operator and signature of an agreement
  • No technical adaptation of electrical installations required
  • Sign a feed-in contract with an electricity supplier to take back any surplus electricity

Autoconsommation collective

  • Establishment of a sharing group and agreement on the allocation scheme for the generated electricity
  • Signature of an agreement with the grid operator
  • Setting up a buy-back contract with a supplier to take back any surplus electricity
  • Signing of an allocation agreement between the members of the sharing group, notably to define the price of the shared electricity and the terms of payment.
  • For more information and related documents: klima-agence.lu

Energy community

  • Establishment of a sharing group and agreement on the allocation scheme for the generated electricity
  • Extending the scope of the business activities to include the energy community or setting up a seperate entity
  • Notifying the ILR of the creation of the energy community
  • Signature of an agreement with the grid operator
  • Setting up a buy-back contract with a supplier to take back any surplus electricity
  • Signing of an allocation agreement between the members of the sharing group, notably to define the price of the shared electricity and the terms of payment.
  • The community can delegate the responsibility for organising the allocation to a service provider
  • For more information and related documents: klima-agence.lu

Electricity allocation scheme

When you opt for a collective self-consumption system or an energy community, by default the electricity will be shared in proportion to the consumption of the various supply points. However, it is important to know that it is also possible to allocate electricity according to different preferences. The members of the community can also devise a more complex allocation scheme, by giving priority to certain consumers or by defining the allocation percentages themselves.

Practical information on sharing electricity

  • An energy report (quarter-hourly detail) is drawn up by the network operator, according to the chosen allocation scheme. This report is sent monthly to the self-consumers/sharing group representative.
  • Participation in collective self-consumption or in an energy community is voluntary.
  • Each member of an energy community can sign individual electricity supply contracts with suppliers of their choice.

Subsidy application

There are no dedicated subsidies for self-consumption. However, this practice does reduce the amount of electricity you have to buy from your energy supplier. For information on the available subsidies for renewable energy production facilities, please consult the following measure: Installing photovoltaic panels on the roofs of your business.

Implementation aid

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