If you have solar panels, you generate electricity. You may use this electricity directly in your home, for example when charging your car. Another possibility is that you generate more than you consume at any given moment. You then feed electricity back into the grid: this is called feed-in.
With a dynamic energy contract, you pay a different energy rate every hour, which is determined based on the current market price. The compensation per kWh fed back from your solar panel is equal to the current market price. This differs from a fixed or variable contract, which has a fixed agreed feed-in tariff.
Because you receive the current market price for feed-in with a dynamic energy contract, this also means that at certain times of the day you receive a higher compensation for feed-in and at other times of the day you receive a lower compensation for feed-in. This compensation is called the feed-in compensation.
Many traditional energy companies charge feed-in costs, a term that is often confused with feed-in compensation. Feed-in costs are charged because energy companies lose a lot of money due to the net metering scheme. Regardless of the type of contract you have as a consumer (fixed, dynamic, or variable), energy companies always purchase their electricity at the current market price.
Energy companies then lose a lot of money because, due to the net metering scheme, they have to pay the same price to consumers for the electricity fed back at cheap times (summer) as for the electricity that consumers purchase at expensive times (winter). To cover these costs, many energy companies charge feed-in costs, which means that you, as a customer, end up paying this bill yourself without even noticing.
With Blue Current Energy's dynamic energy contracts, on the other hand, we are transparent about the net metering scheme, the feed-in compensation, and the feed-in costs. That is why you do not pay any feed-in costs with us. It works as follows:
- At Blue Current Energy, we do not charge any feed-in costs; you receive or pay the rate that corresponds to the current market price of that hour.
- At Blue Current Energy, net metering is possible and your generation and consumption are compared every hour, with billing taking place annually. This takes place annually.
- The energy tax and the current market price can be offset against each other on a one-to-one basis. Please note: as a result, the feed-in compensation does not exactly correspond to your all-in dynamic hourly price.
- As with energy consumption, we also charge a purchase fee for every kWh that is fed-in back into the grid.
We have to pay this because we use third-party systems (electricity grid) and feed-in contributes to the imbalance risk. The current purchase fee can be found here. - In short, the feed-in tariff at Blue Current Energy is the all-in dynamic hourly price per kWh minus the purchase fee per kWh.
An example:
Only if you generate as much or more than you consume in that same hour can you offset that portion. Surpluses in one hour cannot be offset against deficits in another hour.
1:00 p.m. to 1:59 p.m. – You generate 2 kWh and consume 1 kWh = 1 kWh fed back
2:00 p.m. to 2:59 p.m. – You generate 1 kWh, consume 2 kWh = 1 kWh completely from the grid
You cannot use the 1 kWh you have left over at 13:00 to compensate for the 1 kWh deficit at 14:00.
For the 1 kWh fed back at 13:00, you will receive: the energy tax and the current market price. You pay the purchase fee.
Are solar panels interesting in combination with a dynamic contract
Whether a dynamic energy contract is the best choice depends on your situation. But in most cases, you will save money with dynamic rates, even with solar panels. Below, we explain why:
- If your consumption exceeds your feed-in?
Then you will almost always save money with dynamic energy, because you pay a lower price per kWh for your extra consumption than with a fixed or variable contract. - If you feed-in more than you consume?
Even then, dynamic energy is often cheaper. Outside of summer, electricity prices are higher, so there is less chance that the current market price for energy will go into the red. This ensures that only the purchase fee for feeding back is charged. - If your feed-in and consumption are equal?
It may seem attractive to opt for a fixed contract because of a slightly higher feed-in tariff. Although this may be a legitimate argument, Blue Current Energy does not charge fixed feed-in costs, unlike traditional energy companies. With us, there are no hidden costs; we are transparent and do not charge fixed feed-in costs, unlike many traditional contracts.