Self-consumption of renewable energy is one of the most important strategies for the energy transition throughout the European Union (EU). Both the European Parliament and various environmental organisations have fought to make it an inalienable right for European citizens. In this context, many barriers have been removed, including unfair taxes such as the so-called sun tax in Spain, which until its repeal in 2018, slowed the development of photovoltaic self-consumption.
The European Parliament's push for self-consumption
The European Parliament has made clear its strong position in favour of self-consumption of renewable energy. In several amendments, such as the one approved in 2018, it has been demanded that all consumers have the right to self-consume and sell their surplus renewable electricity production without being subject to discriminatory regulatory procedures. This translates into direct protection for self-consumption and the beginning of the end of measures such as the tax on the sun, which imposed a backup fee on citizens who decided to install solar panels in their homes.
The amendment, which received 594 votes in favour, 69 against and 20 abstentions, was a significant step towards promoting self-consumption at a European level. This decision protected self-consumption as an inalienable right, eliminating administrative obstacles and prohibiting unfair measures that hindered the mass adoption of renewable energies.
What was the sun tax?
In 2015, the Spanish government approved the Royal Decree that introduced the backup toll, popularly known as the tax on the sun. This measure, promoted by the then Minister of Industry José Manuel Soria, imposed a charge on consumers with photovoltaic installations who used the electricity they generated for their own consumption. In other words, those who produced their own energy through solar panels had to pay for using it.
The stated aim of the tax was to ensure the economic sustainability of the electricity system and prevent self-consumers from “disengaging” from the grid while continuing to benefit from its support at times when their panels were not generating enough energy. However, the tax was harshly criticised by multiple organisations, arguing that it only served to hinder the growth of renewable energy.
The impact of the sun tax on the development of renewable energies
While in countries like Germany, with much less sun than Spain, the adoption of photovoltaic energy was exponential, the Tax on the sun stopped the growth of self-consumption in SpainThe PP government's policies since 2011 have halted the progress of a country that, at the beginning of the XNUMXst century, was one of the pioneers in the implementation of renewable energies.
The figures did not lie: while solar installations were increasing in Germany, Spain was lagging far behind, despite having one of the best solar resources in Europe. This stagnation not only affected domestic self-consumption, but also impacted companies and large renewable projects that could have been key for the country.
The repeal of the tax on the sun
In October 2018, the Spanish government finally repealed the sun tax by means of the Royal Decree 15 / 2018This was a historic moment for self-consumption in Spain, as it opened the door to the installation of photovoltaic systems without additional charges, and paved the way for a fairer and more sustainable energy transition.
Thanks to this repeal, citizens and companies that produce their own energy through renewable sources could, in addition to saving on their energy bills, contribute to reducing CO2 emissions, making the country a place more committed to climate change. In addition, this regulation included the possibility of sharing self-consumption facilities in communities of owners.
What do EU rules say about self-consumption?
The European regulatory framework has played a fundamental role in promoting self-consumption in all member countries. Community directives promote the use of renewable energies and grant citizens rights that allow them to generate, consume and sell their own energy without facing unlimited or discriminatory charges.
Furthermore, with the goal of reaching 35% renewable energy by 2030, the European Union urged all countries to adopt measures that facilitate the installation of self-consumption systems and to encourage both individual and collective use of renewable energy. These efforts are accompanied by national policies in many cases that seek not only to facilitate the adoption of clean technologies, but also to meet the climate objectives established in the Paris Agreement.
The path towards a sustainable energy model
The elimination of the tax on the sun in Spain and the EU's push for self-consumption marks a new paradigm in the renewable energy sector. It is expected that, in the coming years, photovoltaic solar energy continue to expand, thanks to a much more flexible and favourable legal framework. Neighbourhood communities, businesses and citizens will be able to opt without fear of economic reprisals for a more sustainable energy model, based on clean energy sources.
In addition, the creation of a more decentralized electricity market is promoted, in which consumers are not mere recipients of energy, but Key players in the production and distribution of renewable energyThis will not only enable a significant reduction in emissions, but will also improve energy security and reduce dependence on fossil fuels.
The future of self-consumption in Europe is bright. With the removal of barriers and the implementation of favourable regulations, both private consumers and businesses will be able to benefit from the economic, social and environmental advantages of energy self-consumption.