Net-billing in Ukraine: how to accumulate electricity and earn from it

Owners of energy storage systems, as well as those considering purchasing them, often wonder: how can one profit from the difference in electricity prices between day and night? Is this a legal and viable way to make a profit? In fact, interest in mechanisms that allow for profit from electricity, particularly by storing it during off-peak hours and selling it back to the grid during peak hours, has been growing every year.

One such increasingly popular mechanism in Ukraine is Net Billing. However, before starting to use this technology, it is important to understand how net billing works in Ukraine and what legal requirements and restrictions exist for owners of energy storage systems. If you're looking for a way to make money from electricity while minimizing legal risks, read on.

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What is Net Billing and How to Profit from Electricity?

In Ukraine, the concept of net billing has already emerged. This is a legal electricity billing mechanism that has been successfully used in several countries for a long time, and it is only now starting to be implemented in Ukraine, so not many people are familiar with it yet.

With net billing, the national energy system operates on a cumulative principle. Essentially, its principle is similar to that of a bank: the most solar energy is produced during the day, but less is consumed, especially in the warmer months. In the morning and evening, the situation is reversed—consumption increases while production decreases, making electricity more expensive on the market.

Net billing allows owners of energy storage systems to accumulate surplus electricity during the day and feed it into the national energy system. In return, they receive payments based on the current tariff at the time the energy is transmitted to the grid.

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Are a License or Any Other Permits Required for Net Billing?

A common question among owners of generating systems who want to profit from electricity is whether a license is required to use Net Billing. In general, no license is needed for Net Billing itself. Currently, Ukrainian legislation does not fully regulate this issue, and there is no requirement to obtain a license for transferring surplus electricity to the national grid.

However, the situation changes if you plan not only to generate electricity but also to purchase it at lower rates for resale, especially to specific end consumers rather than to the national grid. In such cases, several factors must be considered:

• The capacity of your generating installations.
• Who exactly you will be selling electricity to.
• The location of the buyer.

For example, if the buyer (end consumer) is located on your property (such as tenants of your premises), then in this case, you may not need a license. This is especially true if the capacity of your installations is under 5 megawatts. However, if the capacity is greater and the consumers are not on your property, you should contact the National Commission for State Regulation in the Spheres of Energy and Public Utilities (NEURC) to inquire about the need for a license.

The NEURC will review your inquiry and the attached documents related to your installation and provide an official clarification, which can then be used in communication with government authorities, in case anyone requests a license from you. If the NEURC responds that a license is required in your case, you will need to apply for one.

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How to Profit from Electricity Legally?

Solar panels on your roof can not only help you save money but also generate income. However, to avoid risks and misunderstandings with government authorities, it is crucial to obtain official confirmation of the legality of your actions in order to earn money from electricity without risks.

We can assist you in this process: we will prepare and submit an inquiry to the NEURC and, if necessary, handle the required permits. Get not just help, but a reliable result that will allow you to operate without obstacles.

If you have questions or need professional legal assistance regarding electricity storage and sales, feel free to contact our specialists. We will provide reliable legal support at every step of the process!