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Small grid feed-in

The new Portuguese legal framework for distributed energy generation establishes a new way of producing electricity at home – the Small Grid Feed-in Unit (UPP).

What is a Small Grid Feed-in Unit (UPP) and how does it work?

A Small Grid Feed-in Unit is a production unit with an installed power less or equal to 250kW. These systems use one single energy source and inject all the electricity they produce into the public electric power service grid (RESP).

Frequently asked questions from our customers

Frequently asked questions

1. Who can be a small producer?

Any natural or legal person, as well as condominiums of horizontally organized buildings, which have an electricity purchase agreement with a seller. In addition, the small production scheme (PP) provides that third parties (such as energy service companies), when authorized by the owner of the consumer installation, may install a small production unit at that location, by means of a contract between the owner of the consumer installation and the third party concerned.

2. Where can I install the small production system?

The Small Grid Feed-In will be installed in the same place served by the installation of electric energy use.

3. What is the maximum power that I can install?

The connection power of the small production unit (UPP) must be less than or equal to 100% of the contracted power and may not exceed 250 kW.

4. Are there other conditions for access to the production activity for Small Grid Feed-In?

Yes. It is necessary that the energy consumed in the installation of use is equal to or greater than 50% of the energy produced by the respective small production unit. The ratio between the energy produced and consumed in the previous year is taken by reference in the case of installations in operation for more than one year and the ratio between the annual production and energy consumption forecast for installations which have less than one year.

5. Can I use more than one source of renewable energy?

No. In each small production unit it is possible to operate only a single source of renewable energy from a production technology. For instance photovoltaic panels.

6. How can I make the previous registration and obtain the certificate of operation of the small production unit (UPP)?

You can access the registration via SERUP. The service has been available since March 9, 2015. FF Solar communicates the UPAC of its clients. From the date of the automatic validation of the registration you have 10 working days to pay the registration fee according to the Small Grid Feed-In installed power:
I - With installed power up to 1.5 kW: 30€ + VAT
II - With installed power from 1.5 kW to 5 kW: 100€ + VAT
III - With installed power from 5 kW to 100 kW: 250€ + VAT
IV - With installed power from 100 kW to 250 kW: 500€ + VAT
For category BB installations with connection of the installation of consumption and its counter in low tension has 8 months counted from the date of acceptance of the registration to request the inspection of the UPAC or 12 months for the other installations. The inspection is carried out within a maximum period of 10 days after the submission of the respective application. After the assent of the inspection and the issuance of the exploration license, the producer and the last resort supplier (CUR) are immediately notified through SERUP for completion of the purchase and sale of electricity contract. The producer adheres to the contract of purchase and sale of electricity, within a maximum of 5 days. Afterwards, CUR informs SERUP of the conclusion of the purchase and sale contract, within 10 days. After the communication of conclusion of the purchase contract, SERUP warns the network operator (ORD) to connect the UPAC to the grid. The UPAC connection must be made within 10 days of the SERUP notice.
FF Solar will provide all the necessary information to its customers throughout the process.

7. Is the small production unit subject to periodic inspection and what is the value of the fee?

Yes. Small production units with installed capacity exceeding 1.5 kW are subject to periodic inspections every 10 years. The fee is 20% of the registration fee.

8. Can I consume my electricity and sell the surplus?

No. All production is sold and injected into the network. Those who want to consume the energy produced and, when applicable, sell the surplus of production to the CUR should select the self-consumption regime.

9. What is the sale price of the different types of renewable energy sources?

The sale price for the electricity produced by the UPP is remunerated by the tariff attributed on the basis of a bidding model, in which competitors offer discounts at the base rate. The tariff to be awarded corresponds to the highest value resulting from the largest discount offers at the reference rate, calculated for each of the following categories:
Category I - In which is included the producer who intends to install only a UPP;
Category II - In which is included the producer who intends to install at the associated place of consumption an electric outlet for the loading of electric vehicles, ie owner or renter of an electric vehicle;
Category III - In which is included the producer who intends to install solar thermal collectors with a minimum of 2 m2 area or biomass boiler with annual production of equivalent thermal energy.
The reference tariff is established through a DGEG ordinance up to December 15 of each year. In 2015 it was 95 €/MWh (0.095 €/kWh). At the base rate, the amount of 10 €/MWh (0.010 €/kWh) in category II and 5 €/MWh (0.005 €/kWh) in category III is added.
The reference tariff will vary depending on the type of primary energy used in the following percentages, of the reference tariff.:
Solar – 100%
Biogas and biomass – 90%
Wind – 70%
Hydro – 60%
The electricity sold is limited to 2.6 MWh/year for solar and wind energy sources, and 5 MWh/year for other energy sources.

10. Is there an annual quota of allocated power?

Yes. The scheduling of year-to-year allocation of the annual power quota and its distribution by categories is done by dispatch by December 31 of each year. The annual quota may not exceed 20 MW.
The power quota for the UPP in 2015 was 15 MW. The allocation of power is performed monthly on the last business day of each month, in the period between March and November, up to the following monthly limits:
- March: category I - 1.6 MW, category II - 1.5 MW, category III - 1.5 MW
- April to November: category I - 0.5 MW, category II - 0.4 MW, category III - 0.4 MW

11. How will my energy output be counted?

It will be done by a production meter independent from the consumption meter. In the case of low- or medium-voltage electricity customers with low voltage counting, the production meter can be installed at low voltage. For medium voltage customers with medium voltage counting, the production meter must be installed in medium voltage.

12. How will the compensation be made?

Billing is handled by the last resort supplier (CUR), in accordance with paragraph 11 of Article 36 of the VAT Code, without written agreement of the producer. Payment is made directly to the producer, by bank transfer, with monthly or higher frequency (see Article 35 of Decree-Law no. 153/2014).

13. What is the duration of the sale contract?

The contract is valid for 15 years, with constant remuneration. Producers may not opt to join another remuneration scheme during the period of validity of their tariff. At the end of this period the application of the subsidized remuneration regime expires, entering the producer into the general remuneration system (See Article 32 of Decree-Law no. 153/2014).

Approval process

All the individual steps of the approval process are shown here in a simple and clear format.

Process overview

Comparison UPAC / UPP

Learn the basic differences between Self-Consumption and Small Grid Feed-in in a summary comparison.

UPAC vs. UPP

Legislation

Read the new law DL n º 153/2014 of 20/10/2014 on distributed energy generation. (Portuguese)

Legal text

Ask for a quote!

Ask for a quote!

Whether at home or in the business, become an electricity producer and generate your own clean energy with a Small Grid Feed-in system. By filling the Small Grid Feed-in form, you can contact and send us the relevant data for a non-binding offer easily and conveniently. Of course, you can also use our other contact options. We will gladly advise you personally.

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