Electricity certificate - what you need to know!27.10.2019
In this post, we answer frequently asked questions about electricity certificates (elcertifikat) - a system that affects both electricity companies, electricity producers, network owners and you as an electricity user.
What is an electricity certificate?
Electricity certificates are a state subsidy for renewable energy producers that was started in order to promote the expansion of renewable energy in society. The system was introduced in 2013 with the aim of increasing the amount of electricity produced using solar energy, wind power, hydropower and biofuel.
The system works in such a way that producers of renewable energy are awarded an electricity certificate, while producers of non-renewable energy are subject to quota obligations and have to buy electricity certificates to cover their production of "unclean electricity".
For each megawatt hour (MWh) of renewable electricity produced, producers can obtain an electricity certificate from the state. The system of certificates thus gives an extra income to renewable electricity production in addition to the usual electricity sales.
What is the price of electricity certificates?
The price of electricity certificates depends on supply and demand, so the price may vary on the market. We at Svea Solar usually say that the price of electricity certificates is usually around SEK 0.10 per kWh.
It is worth to mention that since the system was introduced, the production of renewable energy has had a huge increase. This, in turn, means that the state has issued more certificates. So as the availability of electricity certificates has increased, the price has also dropped.
What is the quota obligation and who has it?
The quota obligation means that electricity producers who produce electricity from non-renewable sources need to buy electricity certificates to “compensate” for their non-environmental friendly electricity production in relation to the amount of electricity sold or their electricity use.
According to the law, this applies to the following actors:
- Electricity suppliers who supply electricity to electricity users
- Electricity users to the extent that they have used electricity that they themselves have produced, imported or bought on the Nordic electricity exchange
- Power intensive companies
Each year the electricity trading companies report their quota obligation and the number of electricity certificates used is removed from the system.
How do I apply for an electricity certificate?
If you are a company that produces solar energy or another type of renewable energy, you need to submit an application together with hourly measurement of your plant to the Swedish Energy Agency (Energimyndigheten).
If your plant is approved, your electricity certificates will be issued on the 15th of each month and based on the amount of electricity your plant has generated.
As a micro-producer (homeowner) you can apply to the Swedish Energy Agency to have your solar panels approved for electricity certificates. However, electricity certificates can only be obtained for the access electricity which is discharged to the electricity grid, since it is only the electricity that passes the house electricity meter and is registered that is counted.
And did you know that…
At Svea Solar we can help you with electricity certificates, so the only thing that you as a customer have to worry about is the extra money that comes into your account once a year. The equivalent of about 0.10 SEK / kWh extra for all electricity your house or larger plant has produced.
How does the electricity certificate affect the electricity bill?
You as an electricity user bay a fee that is mixed into your electricity price that covers your supplier's costs for electricity certificates. How big that amount is for you depends on;
- how much your electricity company has paid for their electricity certificates.
- this year's quota (determined by the state).
- and what kind of electricity contract you have.
If you have a fixed electricity price, the cost of the electricity certificate should already be included in the price. If you have an electricity contract where the price varies from month to month, price changes for electricity certificates will also be reflected on your electricity bill.
Although fixed electricity certificates can be perceived as an extra cost, it symbolizes a contribution to a greener future. In this way, all customers, both private and corporate, contribute to a reduced climate impact.
Read more about our green energy contract which gives you better control of your electricity consumption and bills. You get a smooth overview of your electricity consumption and can easily sell your access electricity.