Drop in demand for household solar panels in Latvia

Demand for the installation of solar panels in households has dropped significantly in the last three months. This is due to the new billing system - since May, the electricity fed into the grid is counted in monetary terms, instead of kilowatt-hours as before. Another reason for the drop in demand is market saturation, Latvian Radio reports August 14.

Sandis Jansons, Chairman of the Board of the electricity distribution network JSC "Sadales tīkls", confirmed that the demand for solar panels has dropped significantly:

"There is a drop. At the moment we are connecting about 100 small micro-generators per month. Previously it was several hundred and some months even thousands. 

"The decrease is probably not only due to the change of system but also to the saturation of solar parks as such. Capacities have already increased to such an extent that we may even have some solar energy left over for a while next year."

A total of 22,400 households are currently connected to the grid, generating 190 megawatts using solar power. However, this is a fraction of the total capacity of more than 500 megawatts.

"Larger or smaller solar industrial parks are already connected with more than 320 megawatts of capacity," said Jansons. He stated that by the end of the year, the total solar capacity in Latvia will be above 600 megawatts. "So next year will probably have sunny days when we will have enough solar energy in the electricity system."

Asked whether Latvia will soon reach the solar capacity ceiling, Jansons said that the limits have already been reached in remote rural regions. 

A Ministry of Economic Affairs program with a total funding of more than €5 million has recently come to an end and another one is not yet expected. In total, more than 700 private homes have purchased solar panels with state support.

Another option for which funding has not yet been exhausted, but on the contrary has been increased this summer by up to €5 million, is a program coordinated by the Ministry of Climate and Energy.

Climate and Energy Minister Kaspars Melnis (Greens and Farmers Union) has also noticed that demand dropped significantly with the introduction of the new billing system. However, since July, interest has slowly returned as it is now possible to buy both solar panels and their batteries with state support, enabling households to store the energy produced by the sun for self-consumption rather than transferring it to the grid.

"The program runs until the end of 2024. The balance currently available to support the installation of renewable generation equipment directly is €1.8 million. So at the moment, there is enough funding," said Melnis.

In total, more than 11,000 households have installed solar panels under this program, and the total amount of support in the last two years was more than €38 million. Melnis pointed out that an assessment will be made at the end of the year on whether to continue the program or not.

 

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