It is not always the case that those who produce Energy are in a position to consume it in the same place. Remote self-consumption responds exactly to this logistical need: it allows citizens, businesses and public administrations to combine a production plant from Renewable sources with one or more consumption points located in different places, sharing the resource through the existing electricity grid.

 

The result is a concrete reduction in bill costs and greater independence from the grid.

What is remote self-consumption?

 

Remote self-consumption is a method of sharing Renewable Energy formally introduced in Italy with Legislative Decree 199/2021, which transposed the European RED II Directive, and regulated by subsequent implementing decrees.

 

This configuration allows one or more entities to use the Energy produced by a plant that is physically located elsewhere than the withdrawal point. The fundamental requirement is that the injection and consumption points are connected to the same primary substation of the local distribution grid, a broad geographical perimeter that makes it possible to cover entire portions of territory or neighbouring municipalities.


In practice, the resource is fed into the grid by the production plant and then virtually attributed to the associated consumption points. The GSE, Energy Services Operator, manages the entire administrative mechanism through a specific virtual sharing contract, which regulates the economic valorization of the shared Energy and the payment of the related state incentives.

How does virtual exchange work?

 

The mechanism behind remote self-consumption follows a linear logic: the Energy produced by Photovoltaic enters the public electricity grid and is virtually associated with the consumption of the connected withdrawal points.

 

The difference compared to a traditional rooftop system is that the physical flow of Energy does not coincide with the accounting attribution. It is the GSE that acts as intermediary, recording the production and consumption calculations of the participating entities on an hourly basis.

 

The main technical requirements for accessing the service are:

  • system capacity: the maximum threshold for individual eligible plants is set at up to 1 MW, 1,000 kW;

  • geographical perimeter: injection and withdrawal points must strictly belong to the same primary substation;

  • Renewable source: the plant must generate Energy from clean sources, such as newly built Photovoltaic systems;

  • contract with the GSE: joining the virtual sharing service is mandatory and is activated through an online procedure on the entity’s portal.

 

Every month, the GSE calculates the hourly shared quota. If consumption exceeds production, the missing Energy is withdrawn normally from the grid; if production exceeds consumption, the surplus fed into the grid is commercially valorized and integrated with the economic benefits provided for by law.

Who can participate and which entities are eligible?

 

Remote self-consumption is aimed at natural persons, businesses and third-sector entities that own or manage both the plant and the consumption points. It is not necessary for producer and consumers to coincide: an entity can produce Energy and make it available to others through a formalized agreement.

 

Unlike Renewable Energy Communities, CERs, which involve a plurality of entities organized in a specific associative or legal form, individual remote self-consumption can also be activated by a single prosumer, producer-consumer.

This is the case for those who want to combine a Photovoltaic system installed on land or in a second property they own with the utilities of their main home or business premises, provided they are within the area of the same primary substation.

 

This distinction is crucial during assessment. Those looking for collective and open participation will find a response in CERs. Those who instead have needs linked to private and direct management of Energy across multiple sites will find remote self-consumption the most suitable tool.

Economic and environmental benefits of the choice

 

Adopting remote self-consumption brings benefits both economically and environmentally. From the bill perspective, virtually self-consumed Energy reduces overall withdrawals and lowers the costs of the Energy component. Every shared kilowatt-hour is one less unit purchased at the Free market price.

 

The main structural advantages are:

ARERA valorization contribution

On virtually shared Energy, an economic reimbursement is recognized linked to the unused grid tariff components, since the Energy is consumed locally.

GSE incentive tariff

The State pays an actual premium tariff for every kilowatt-hour shared within the hour, significantly improving the payback time of the investment.

Monetization of surpluses

All the Energy produced and fed into the grid that exceeds instantaneous consumption is not lost, but is purchased by the GSE through the Dedicated Withdrawal (RID) mechanism at market prices, or sold on the Free market.

Reduction of emissions

Every shared Renewable kilowatt-hour replaces fossil sources, accelerating the ecological transition.

Optimization of spaces

Those who have an ideal production site, for example a warehouse or suitable land, can make the most of its surface to cover the consumption of separate premises without useful space for panels.

The available incentives and technological solutions

 

Remote self-consumption is part of the framework of benefits provided for Renewable energies in Italy. Those who install a Photovoltaic system for these configurations can access several support tools, including tax deductions and mechanisms managed by the GSE.

 

For a complete overview, it is useful to consult the updated information on Photovoltaic incentives, which illustrate the main benefits accessible today. If you have suitable space, choosing an installation from the Enel Photovoltaic range allows you to obtain a customized and efficient system.

 

For those who do not have a suitable roof available or live in rented accommodation, there are valid alternatives to access the benefits of solar Energy:

  • balcony Photovoltaic, a small-sized system ideal for limited spaces, which does not require complex authorizations and reduces the basic consumption of the apartment; 

  • the ebitts project, a digital solution based on blockchain technology that allows you to benefit from Renewable energies virtually, without installing physical panels on your property.

Frequently asked questions

Is it possible to carry out remote self-consumption between two properties with different ownership?

Yes, the legislation does not require homogeneity of ownership between producer and consumer. It is sufficient to enter into a private contractual agreement between the parties, formalize membership of the service on the GSE portal and verify that both points are under the same primary substation.

What happens to the Energy produced that is not virtually self-consumed?

The Energy that exceeds the hourly consumption of the connected withdrawal points is fed into the grid and commercially valorized. The GSE remunerates it to the producer through the Dedicated Withdrawal (RID) mechanism, recognizing the hourly zonal price for each kilowatt-hour fed into the grid. This quota does not receive the premium tariff, but still represents a guaranteed economic return.

Can a storage system be combined with a system for remote self-consumption?

Yes, the technical integration of batteries into the production plant is fully possible and useful for managing peaks. It is important to remember that incentives on distributed self-consumption specifically valorize Energy shared through the public grid. Energy stored in the storage system and physically consumed on site does not fall within the calculation of remotely shared Energy.

What documents are needed to join the service through the GSE?

The request is submitted online on the GSE portal after the system has been connected. The technical data of the system are required, capacity and injection POD code, the POD codes of all consumption utilities to be associated, the corresponding connection reports and the documents certifying legitimate possession or right of use of the sites concerned, as well as the deed appointing the Contact Person for the configuration.

Can a condominium use remote self-consumption with a system on a nearby building?

Yes, it is a feasible solution if the building hosting the system and the condominium belong to the same primary substation. If the objective is only to serve condominium utilities and the individual apartments of the same building, it is usually configured as a “Group of self-consumers acting collectively”; if, on the other hand, it involves nearby external structures, remote self-consumption or the creation of a CER represent the correct paths, subject to verification of the grid map.

Are there limits to the number of utilities that can be associated with a single system?

The law does not establish a maximum number of meters, PODs, that can be associated with individual remote self-consumption. However, since the economic benefit, premium tariff, is generated on the share of Energy virtually shared in the same hour, it is essential to correctly size the system, within the maximum limit of 1 MW, in relation to the overall consumption profile of the connected utilities, to avoid dispersing the economic potential of the configuration.

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