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Can You Sell Electricity Back to the Grid in Portugal?

If you’re an international homeowner in the Algarve, either living there permanently or managing a holiday property, you may be wondering if you can sell surplus solar energy back to Portugal’s electricity grid. The answer is yes—you can sell any excess energy and contribute to the grid while lowering your energy costs. Here’s a guide on setting up a self-consumption system that lets you produce, consume, and even sell solar power back to the grid.

Step-by-Step Guide to Sell Electricity Back to the Grid in Portugal

Setting up a solar system in Portugal that enables you to sell electricity back to the grid involves a few important steps to ensure compliance with regulatory standards:

Step 1: Determine Your Profile

Identify your energy profile and what you aim to achieve with the solar system. Decide if you want to produce electricity just for personal use or if you also want to inject surplus energy into the grid. If you need help with this then click here: learn more about solar panels in Algarve

Step 2: Consult with an Authorized Technician

Work with a licensed technician to design and install your system. They’ll help you select the right equipment and navigate the registration process. For convenience, check the list of accredited technicians on the DGEG website, or consult our team at Voltaicos.

Step 3: Register on the DGEG Self-Consumption Portal

If your installation exceeds 700W or you wish to sell electricity back to the grid, register on the DGEG Self-Consumption Portal. You’ll need:

Your Point of Delivery Code from your electricity bill
Your NIF Number (tax identification)
Installation details, including the authorized technician’s information

You’ll also need to obtain your Production CPE (Códigos de Ponto de Entrega) by registering with the DGEG or completing the MCP (Mera Comunicação Prévia) and ensuring that your meter is properly set up to measure and sell the energy produced.

Step 4: E-REDES Analyzes Your Request

After you register, E-REDES will assess the setup. If the requirements are met, they’ll approve the application and provide a link to track the installation’s progress.

Step 5: Meter Verification by E-REDES

E-REDES will inspect your meter to ensure it can track both energy consumption and surplus production. If necessary, they will replace it with a bi-directional meter, which allows energy to flow both ways—tracking how much electricity you consume and how much excess you send back to the grid, enabling you to sell electricity back to the grid efficiently.

If you already have a smart meter, E-REDES can typically upgrade it remotely in just a couple of days, without the need for a physical visit.
If you still have an old meter, E-REDES will first need to replace it with a smart meter before enabling the bi-directional functionality. However, in most cases, households already have a smart meter installed.

We understand that all of this can feel overwhelming. If you’d like personalized assistance, simply request a 5-15 minute call with one of the experts from Voltaicos, a trusted local solar company based in Guia. We’re here to help!

Step 6: Certify Your Installation for Large Systems

For systems over 30kW, certification by the DGEG is required, which involves an inspection to ensure compliance with national standards.

Step 7: Start Consuming and Sell electricity back to the grid in Portugal

With certification complete, you can begin consuming the energy you produce and selling any excess to the grid. Use the Production Point of Delivery Code (CPE) provided by E-REDES to manage and track your contributions.

Step 8: Choose an Energy Buyer and Sign the Sales Contract

Consult the Association of Energy Retailers in the Liberalized Market (ACEMEL) to find a list of buyers for the energy you generate. Once you’ve selected a buyer, you’ll need to sign a contract. For this, you will need documentation such as your name, NIF (tax identification number), and MCP number, which is essential for the process to sell electricity back to the grid.

Step 9: Additional Considerations

You may need to register a business activity with the tax authority, issue invoices, and declare income in your IRS (income tax return).
To register your activity with the tax office, you can use CAE code 35113 (economic activity code) or CIRS code 1519 (personal income tax code).
The invoice is issued in the producer’s name (self-billing).
If you are exempt from VAT (by fully complying with Article 53 of the VAT Code), meaning your annual revenue from this activity is below €12,500 (which is usually the case), the self-invoice will not include VAT.
Declare your income in IRS using Annex B.

Step 10: Monitor Your System Using the E-REDES Digital Counter

The E-REDES Digital Counter and app let you track your energy production and grid contributions, so you can stay on top of usage and earnings.

Learn More About Solar Panels in Portugal

Curious about solar panels? Discover the best options, costs, and benefits for your home. At Voltaicos, we offer expert advice and high-quality installations tailored to your needs.

Learn More About Solar Panels

How Much Can You Earn from Selling Electricity Back to the Grid in Portugal?

The rate to sell electricity back to the grid in Portugal can reach up to €0.08 per kWh. Although this rate varies based on contract terms and grid demand, it provides an effective way to offset energy costs. The income you receive depends on several factors:

System Size: Larger systems can generate more surplus energy, increasing potential earnings.
Household Consumption: The less energy you use, the more surplus you have to sell.
Seasonal Production: Sunny months, especially in the Algarve, generate higher output, boosting potential returns.

Selling back to the grid lets you maximize your solar system’s value and contribute clean energy to Portugal’s grid, benefitting both your budget and the environment. Additionally, integrating a solar battery allows you to store excess energy for nighttime use or peak hours, giving you even more control over your electricity savings. Whether you choose to sell your surplus energy or store it for later, both options help you get the most out of your solar investment. Learn more about solar batteries in Algarve.

Do you want to know how much you can earn with solar panels in Algarve? Click on the yellow button below to get a free quote!

Conclusion: Sell Electricity Back to the Grid in Portugal Worth It?

Selling surplus electricity back to the grid in Portugal can offer financial rewards, but it’s important to recognize that the process is not without its challenges. While it is possible to make money by selling excess energy, practically speaking, it involves quite a bit of work. From registering with the DGEG, to ensuring you meet technical requirements and managing invoicing and tax registrations, there are several steps to complete.

That said, the process to sell electricity back to the grid is feasible, and for those who are willing to put in the time and effort, it can be rewarding. Portugal’s sunny climate, particularly in regions like the Algarve, makes it an ideal location for generating surplus energy that can be sold back to the grid. The financial returns, especially for those with larger systems or consistent surplus production, can add up over time, helping to offset energy costs or even generate passive income.

In conclusion, while selling electricity back to the grid in Portugal is a practical option, it does require some dedication and attention to detail. It can be profitable and is a great way to contribute to renewable energy efforts, but it’s not a completely hassle-free process. If you’re prepared for the administrative work and technical setup, it can definitely bring financial benefits and make a positive impact on your energy usage and finances.

Ready to Make the Switch to Solar?

Investing in solar panels is a smart move for homeowners in Portugal, offering long-term savings and energy independence. At Voltaicos, we provide personalized solar solutions tailored to your property and energy needs.

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