Wave of terminations looms

Solar power is currently worth almost nothing

The rise in energy prices boosted the photovoltaic sector, but now the gold-rush mood is over.

(Bild: Markus Wenzel)

Energie AG's move to terminate 20,000 customers with good PV feed-in contracts will probably not remain without imitators. Other electricity providers are also observing the market and assume that price adjustments will be inevitable. Anyone currently looking for a feed-in tariff will discover that solar power is worth almost nothing.

"There will currently be no changes to the feed-in tariffs for our customers and contractual partners," assures Florian Seidl from Verbund when the "Krone" asked about the wave of terminations by Energie AG. However, Verbund is also "monitoring the market very closely" and if the market prices for PV electricity continue as before, it is "only a matter of time" before an adjustment might be necessary.

Linz AG also states that it is observing the market. However, no changes to prices are currently planned.

PV system on offer from suppliers
Energie AG continues to offer "Solar Carefree": Photovoltaic systems on installment purchase for existing customers: for example, a ten kW system for just under 17,000 euros - you are also welcome to use the solar power yourself. But there's not much left for feeding into the grid. Currently 3.2 cents per kilowatt hour.

Customers with old contracts, who still receive at least 15.73 cents, have been able to smile about the drop in solar power prices until now, but that will be over at the end of June. Energie AG is kicking around 20,000 customers with such good conditions out of their contracts and offering a switch to the "Team Sonne Loyal Float" tariff - and at least two cents per kilowatt hour fed into the grid. "The consumption peak for electricity in Upper Austria is currently around 1.8 gigawatts, while the generation peak for photovoltaics will climb to two gigawatts by the end of the year. More will then be produced than consumed. The surplus will have to be sold on the international market," say Energie AG bosses Klaus Dorninger and Alexander Marchner. Prices are going crazy here - in some cases negative prices are being achieved and customers are being paid for their electricity consumption.

Consumer protectors check notices of termination
"The termination is legally watertight," says Energie AG. AK consumer protectors agree: "In the past, contracts were changed tacitly. That is no longer possible. Termination is nothing more than suppliers offering a new contract", says Ulrike Weiß, chief consumer protection officer, who will in any case check the terminations. "We have to get used to this practice." This means for customers: Look for a new provider or sign up - you have to take care of it so you don't end up without a supplier.

End of the gold-rush mood
For Robert Tichler from the Energy Institute at the University of Linz, the end of the high feed-in tariffs also means the end of the gold-rush mood on the PV market: "The systems will now only pay for themselves in 15 years instead of four." But that is still a good value with a 25-year service life. The purpose of the PV system is to cover the company's own needs, not to sell electricity and generate high incomes.