With the spread of energy communities, the Net Metering mechanism, in force since 2005, is heading toward extinction.
What is Net Metering and how does it work?
Net Metering is a mechanism that allows the user to offset the electricity fed into the grid, because it was not immediately self-consumed, with that withdrawn at another time.
In this way, the grid functions as a sort of virtual storage system, allowing the user to "recover" the energy produced but not consumed at the time of generation.
If this energy is not withdrawn later, the GSE provides financial compensation for the surplus.
The end of Net Metering
It is important to remember that the Net Metering mechanism will officially end in September 2025.
According to ARERA, the last day to request activation of the service from GSE is September 26, 2025, and only for systems that enter into operation by May 29, 2025. Furthermore, as of December 31, 2024, the service will be automatically terminated for all systems whose contract has been active for more than 15 years.
Regarding compensation for the surplus energy, GSE will complete payments for the surplus accrued before the end of the contract by June 30, 2025.
This choice is part of a broader strategy to update the incentive system for renewable energy production, in line with European goals for the green transition.
The goal is to:
Promote energy efficiency and the use of renewable sources in the electricity market.
Encourage the shift toward the Dedicated Withdrawal model.
Net Metering and Renewable Energy Communities
According to the "Operational Rules for Access to the Distributed Self-Consumption Service" published by the GSE, Net Metering cannot be used together with participation in an energy community. In fact, the GSE specifies: “The right to access incentives is incompatible with the Net Metering mechanism.”
A mechanism that is instead fully compatible with energy communities is Dedicated Withdrawal.
Dedicated Withdrawal allows the producer to sell the electricity fed into the grid directly to the GSE, rather than placing it on the free energy market. This is done upon request from the producer.
The process is simple and based on market prices. For each kilowatt-hour (kWh) fed into the grid, the GSE pays the producer a fixed price. This income can be combined with public incentives, except in cases where a fixed-price incentive has already been applied.
The RID mechanism is a strategic opportunity that encourages producers and prosumers to participate in energy communities. It ensures that all renewable energy not consumed on site can still be monetized by selling it to the GSE under the economic conditions provided by the Dedicated Withdrawal scheme.
Would you like to join an energy community?
Contact us without obligation: at HexErgy we will guide you through every phase of your energy community’s journey, helping you benefit from everything it has to offer.