Yes, in Portugal you can sell excess solar electricity back to the grid through a system called UPAC (Unidade de Produção para Autoconsumo). Homeowners with solar panels can use the energy they produce for their own consumption and feed any surplus into the national grid.
The compensation works as follows:
- Sale of surplus: You can sign a contract with an energy supplier to sell the electricity you don’t use.
- Average buy-back price: Depending on the supplier, you can expect to receive around €0.05–€0.07 per kWh for your exported electricity.
- Self-consumption is more valuable: The average price of buying electricity in Portugal is €0.18–€0.22 per kWh, so using your solar energy directly is 3–4 times more profitable than selling it.
For example, if your solar system produces 6,000 kWh per year and you consume 70% directly, you’ll save about €900–€1,000 annually on your electricity bill. The remaining 30% (about 1,800 kWh) sold to the grid could bring in €90–€120 per year.
That’s why many homeowners in the Algarve choose to combine solar panels with batteries: you can store excess energy during the day and use it in the evening, maximizing self-consumption and savings. read more about solar panels in Algarve
