Photovoltaic system – the different variants of renewable energy generation

The system that is chosen by most is the so-called photovoltaic system that generates electricity with the help of solar energy. With such a system, the owners are independent of public grid providers and do not have to pay more for their own electricity. But also with the photovoltaic systems there are different variants, each of which has its advantages and disadvantages.

Feed-in system – earning money with your own electricity

The most commonly used variant of the photovoltaic system is the feed-in system. This produces electricity for the household and feeds the electricity that is not consumed into the public grid. As required by law, the house is connected to the public grid and feeds surplus electricity into it. For this, the Renewable Energy Sources Act (EEG) stipulates that the producer must be remunerated. The so-called feed-in tariff varies between 10 and 13 cents per kilowatt hour (kWh) depending on the nominal output of the system and is fixed for the next 20 years. To illustrate this: An average family consumes only about 30 % of the electricity generated. 70 % is fed into the public grid and remunerated. However, there is a trap here that private individuals often fall into, because selling electricity is a trade and as soon as a private individual does this, he becomes a freelancer and is self-employed. Taxes and lots of paperwork are just waiting for you. To avoid this, check out our guide on all things solar without the tax office! Through an electricity storage, the self-consumption can be increased up to 75% and the owner benefits twice from the electricity.

Advantages

• Reimbursement of sales tax on the purchase price of the plant
• Good price-performance ratio
• Feed-in tariff according to EEG as additional income

Disadvantages

• Registration of the plant as a trade
• Subject to the obligations of the EEG
• Increased bureaucracy

Such feed-in systems are particularly suitable for property owners who have a constant average electricity consumption and want to drastically reduce electricity costs. On the contrary, such a plant can not only reduce annual electricity costs, but also be used as a source of income.

Zero feed system – all the electricity for your own home

The second variant of the photovoltaic system is the so-called zero feed system. As the name suggests, no surplus electricity is fed into the public grid. In the best case, 100% of the electricity produced is consumed in one’s own household, so that nothing is fed into the public grid. In order to ensure this, the system must be precisely adapted to the individual needs of the owner and also have a suitable electricity storage system. The electricity production is additionally controlled by an inverter, so that the output of the system exactly matches the electricity consumed and no electricity is fed into the public grid. The owners of such a system thus forego the feed-in tariff under the Renewable Energy Sources Act (EEG), but at the same time they avoid all the obligations that the feed-in tariff entails. You do not have to register a business and you do not have to pay taxes for the electricity fed into the grid. Although the photovoltaic system is intended to generate 100% of the electricity required, the property is still connected to the public grid so that it can continue to draw normal electricity if the solar power is not enough.

Advantages

• No increased bureaucratic effort, such as business registration, etc.
• Greater independence
• No obligations under the EEG

Disadvantages

• No feed-in tariff
• No refund of sales tax

The zero-emission system is therefore particularly suitable for private individuals who have a high energy consumption. The installation of a suitable electricity storage unit is mandatory for such a system, so that the self-produced electricity can be used most effectively.

Photovoltaic island system – independent of the public power grid

The photovoltaic stand-alone system variant does without the connection to the public grid and assumes that the solar system can always supply the electricity storage system with energy. The household is therefore supplied with electricity solely from the solar modules and does not rely on electricity from the public grid in an emergency. The owner is therefore not dependent on electricity from the public grid at any time. Here we will first distinguish between two types.

Stand-alone system without mains connection

As the name suggests, this model is a system that is not connected to the public grid in any way. The house relies exclusively on energy from the photovoltaic system. The system was designed for such a case so that both solar modules and energy storage are so large that they can independently supply the entire house with electricity without resorting to another power source. The electricity in such a house is therefore produced and stored 100% by the photovoltaic system. However, this system is usually only installed when a connection to the public power grid would be too costly. This is particularly the case for remote houses, mountain huts or individual infrastructures.

Island system for backup power

Independence from public electricity can also be made possible for German homeowners. The installation of an island system for emergency power is the solution here. In the event of a failure of the power grid, the stand-alone system for emergency power can then intervene. It makes it possible for both feed-in and zero feed-in systems to become an island system in an emergency. In the event of a power failure of the public grid, this system switches to backup power within a few seconds and the house remains normally supplied with electricity. So, the household is not dependent on the public grid and does not have to worry about a power outage. Here it is ensured that there is always enough power available. During installation, the entire house is disconnected from the public grid and a backup power system is set up that can communicate with the storage system.

Advantages

• Function as a backup power system
• Maximum independence from the public power grid
• Protection against power failures

Disadvantages

• Significant additional costs
• Is rarely used
• There is hardly any economic benefit for the owners

Such an investment does not always make economic sense for the homeowner. So before you decide on this option, first check your average daily consumption, the appropriate size of the system and the design of the solar storage tank. With this, you can calculate whether an investment would be profitable for you or not. The independence that owners have with such technology from the public grid is undisputed and will change and influence the energy policy of Germany in the coming years.

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Power and heat generation from renewable energies – almost unlimited availability

Regenerative, renewable or alternative energies live up to their many names in any case. Because their best feature is that they are virtually infinitely available or renew themselves in a relatively short time. Thus, they are far ahead of their competitors such as oil, natural gas or coal. Renewable energies are therefore the future and the way to counter the currently still prevailing fossil energies or nuclear energy. The alternative energies offer a great alternative and are green as a further plus point, so do not harm our environment.

• Keyfact 1 – renewable energies, such as solar or wind energy, offer a major contribution to climate protection, but require a relatively high initial investment for the installation of the system.
• Keyfact 2 – the conversion or installation of renewable energy systems is subsidised by the state and can be easily financed thanks to favourable interest rates.

Renewable energy – what are the different forms?

There are various options available to property owners for generating electricity and heat using renewable energies. Probably the best known is the generation of energy through solar energy. Here, a distinction is made between photovoltaics and solar thermal energy. Photovoltaics is used to convert sunlight into electricity, while solar thermal energy is used to convert solar energy into heat. Learn more about harnessing energy from sunlight here: ‘Solar Energy for Property Owners’. Another way to generate energy is with the help of wind power. A wind turbine uses the lift of the wind to generate energy from it.

A rather unknown method is the generation of energy from biomass. This occurs in the form of wood, energy crops, but also residual materials such as organic waste, liquid manure or straw. Stored solar energy is also converted into heat, electricity or fuel in biomass plants. What most people do not know is that this type of renewable energy also includes pellet heating. The last form of alternative energy is the heat pump. This transports heat from the ground and thus generates electricity. But hot water can also be supplied by a heat pump. So today there are already many forms that are still relatively unknown and could provide the future of energy production.

Building owners – renewable energies for heat generation are mandatory

The Renewable Energies Heat Act (EEWärmeG) applies to builders of new buildings. This states that a proportionate use of renewable energies for heat generation is mandatory. Even though these must be used, renewable energies also have many advantages for building owners. The use of alternative energies makes builders independent of rising energy costs and large energy companies. However, some decisions should be well thought out in advance. Since renewable energies are partly not always constantly available, different energy sources should be considered to complement the renewable energies. In addition, it should be noted that renewable energy must be used for heat generation and that it therefore makes sense to use renewable energy to generate electricity. All these points are to be seen of course also from the financial point of view and there are some things to consider. Depending on which regenerative energy the property owner decides to use, there are several technical systems that need to be invested in.

Promotion for regenerative energies – State promotes real estate owners

The conversion of a property to renewable energies can be financed in various ways. All conversions that exceed the amount of € 50,000 can be financed with a building loan. Different providers have different conditions at which the construction loan can be taken out. If the amount is less than € 50,000, the project can be financed by the property owner through an installment loan.

However, the state also supports property owners who want to convert to renewable energies with various funding programmes. The federal development bank, the Kreditanstalt für Wiederaufbau (KfW) supports individuals and companies by offering these favorable interest rates for a KfW loan. Divided into different funding programs, property owners or even builders can thus use favorable financing for the construction of renewable energy. The renewable energy law provides however likewise a guaranteed feed-in tariff, as long as river from regenerativ energies of real estate owners into the public electricity net are fed. This creates a small source of additional income for property owners. Here however caution is in demand! Because a tax trap for private individuals is quickly hidden here. Learn more about this topic in our article about solar energy!

Advantages and disadvantages – renewable energy sources at a glance

Building a home with renewable energy, or even converting the property to use renewable energy, has a number of benefits for owners:

• You protect the environment and a contribution is made to climate protection
• They are independent of rising energy costs and do not support the big energy companies.
• Financing is made easy for you thanks to funding from KfW
• The feed-in tariff could become a monthly extra income for you

Of course, each side also has its disadvantages, which is why property owners and builders should think carefully before opting for renewable energies – after all, both sides must always be considered:

• The investment for the installation of the technical equipment is incurred and is not necessarily favorable
• The output of renewable energies can be subject to fluctuations
• Some renewable energy installations can mean cuts in the natural environment
• Availability can sometimes be limited

Renewable Energies in Germany – Energy Turnaround and its Goals

The switch to renewable energies has been underway in Germany for several years under the term “energy transition”. The Renewable Energy Sources Act (EEG), which has existed since 2000, regulates the promotion of green electricity in Germany. This law has brought about a major change, especially in the field of electricity generation. As a result, the share of renewable energy in gross consumption has changed from 6 percent in 2000 to 29 percent in 2016. Smaller advances are being made in the automotive sector. Electric cars are a well-known topic, but electric cars that run on electricity from renewable sources are the only option so far and there are no alternatives yet. There is still a lot of work to be done here to make all cars run on renewable energy in the future. In the area of heating there is also only little progress. A large part of the buildings in Germany are still heated with fossil fuels, only for new buildings there are now rules and regulations that require renewable energy.

Germany’s current climate target is to produce 40 percent fewer greenhouse gas emissions by 2020 than in 1990. Whether this goal will be achieved and whether a complete conversion to renewable energies is possible in the future is still written in the stars. All we know for sure is that research into renewable energies will continue and that the EEG requirement is a step in the right direction.

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Photovoltaic systems and the advantages for you

The purchase of a solar system for your own home is not only worthwhile for tax saving reasons. Such a system also brings other advantages with it. But many questions are still open for inexperienced. What about the costs? Is there a financing? How is the system installed? Can I really produce my entire electricity only by a solar plant? And what exactly is a photovoltaic system? We will take care of all these questions today and show you the world of solar systems and how you can use the green energy for yourself. Are you also interested in an energy saving house to do even more for the environment? Learn more about the topic here: ‘Energy Saving House – Energy Efficient Home’.

The starting position for private individuals – what is there to consider?

By purchasing a photovoltaic system, the private person becomes an entrepreneur faster than most people realize. But why actually? This is quite simple to explain, because a photovoltaic system usually produces more electricity than a single household of the private person can consume. So more electricity is produced than can be used and the surplus electricity ends up in the public grid. For this electricity, which is fed into the grid by the private individual, he receives a payment, since the electricity cannot simply be given away. This is an amount of about 10 to 12 cents per kilowatt hour (kWh). And exactly here lies the problem, because who trades with river and by the sales money obtains, operates a trade, even if this happens quasi automatically. So the private person becomes an entrepreneur and that brings some disadvantages, especially in tax and bureaucratic consequences. For most private individuals it is already too complicated here, because it is made really difficult for them. Fortunately there is however an alternative, which can be used by private individuals, in order to save taxes and to escape these complicated formalities. Only if the private person uses the photovoltaic system almost exclusively for self-supply and does not make a profit with it, it is his private matter and he is not considered an entrepreneur. The tax office is therefore left out of the picture. It is advisable for private individuals to install a solar system that is only large enough to produce enough electricity for their own household. Difficulties are thus avoided and you can still do something for the environment and your conscience.

Photovoltaic system – how does the system on the roof work?

Simply put, a photovoltaic system converts light power into electrical power and provides the electricity for consumption. If you go deeper into the matter, you talk about efficiency, because the better the efficiency, the more energy the system converts. The current that flows here is the electrons. They hit the photovoltaic system with the energy of the light and the higher the efficiency, the better the electrons of the light energy can flow. The better they flow, the more light energy is converted into electrical energy and can be used by the end user. Actually explained relatively simple, in practice there are of course still some technical challenges around which the end user but fortunately does not have to worry.

The costs – a photovoltaic system for power generation and when it really pays off

The following things are needed for a solar installation: The solar panels, the substructure, the inverter and the wiring. The costs are also made up of these things. In addition, there are the costs for the installation or the labor. Private households usually get a smaller system, because they only want to cover their electricity production. These are usually a little more expensive than installing a larger system. The output for such small systems is usually around five to eight kilowatts maximum output. For such a plant a roof area of approx. 40 to 70 square meters is needed. The costs for such an example amount to between 8,500 and 13,000 euros. Such plants have a life span of approx. 20 years or longer. Such a system is really worthwhile if the electricity is used for self-consumption. Over such a period, an enormous amount of electricity costs can be saved. In addition, an energy storage system can be installed, which stores energy and makes it available later. In addition, you also have other advantages such as no dependence on energy companies and you do something good for the environment by using green electricity.

Install a photovoltaic system without a tax office

Especially private individuals do not want to burden themselves with the tasks that the stand as an entrepreneur brings with it. In order to still be able to install a solar system, they must be able to prove that the photovoltaic system is not being built for the purpose of later generating revenue. A private person, which installs thus a small Photovoltaikanlage on its real estate around the river even to use and thus no intentions on profit has + additionally the conditions to the small entrepreneur fulfills, does not have to become active once with the tax office. For safety’s sake, however, it is advisable to draw up a long-term plan in which the costs and the income or the amount of electricity produced and the amount of electricity used are listed. This way you are on the safe side. You do not have to pay taxes on it, because you use the electricity without the intention of making a profit.

Funding opportunities for photovoltaic systems – how you can finance your solar system

Especially for private individuals, the question quickly arises as to how such a project should be realized. Often the necessary money is missing. However, since this is something that has a positive impact on the environment, there are funding opportunities for private individuals who are interested in building a photovoltaic system. The Kreditanstalt für Wiederaufbau, for example, offers low-interest loans that private individuals can take advantage of. How much you are subsidized depends on the plant itself but also on your house. Size and type of system and new construction or renovation are arguments that can influence the interest rate. For detailed advice on your individual project, contact an advisor or specialist company in your area, who can inform you about all the funding options for such systems.

Checklist: What is needed to generate electricity with photovoltaics?

To install a photovoltaic system some things are needed. Specialist companies that install such systems can advise you individually in advance and help you with the exact decisions. However, some things are fundamentally necessary to install the solar system. The materials that are needed to install a photovoltaic system on your property are:

• Solar panels/ solar modules
• Memory battery
• Appropriate cabling
• Inverter
• Electricity meter
• Substructure for the roof

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