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Are negative injection rates a problem or an opportunity?

Negative electricity prices are increasingly making headlines. Solar panels owners without a home battery are especially likely to have noticed this. It may sound like bad news, but it doesn't have to be. These developments mainly show that the energy market is changing, and those who are smart enough to adapt may even stand to benefit.

What are ‘negative injection rates’?

At certain times, there is more electricity available than is being consumed, such as on a sunny and blustery spring day. This causes the power grid to become saturated. Consequently, you have to pay to inject your excess solar power into the grid. This scenario is described by the term ‘negative injection rates’. This is immediately noticeable particularly for households with dynamic energy contracts, but these price fluctuations are increasingly having an effect on standard contracts, as well. In 2024, electricity prices in Belgium went negative more often than ever before – especially in the afternoon and at weekends.

Where are these negative electricity prices coming from all of a sudden?

Solar power generation is on the rise. More and more roofs are full of solar panels, and on clear blustery days, wind energy is also being gathered at full speed. This provides an abundance of electricity at exactly the times we need it least. Because while the sun is at its strongest around noon, our peak consumption is in the morning and evening. As a result, the grid becomes saturated and power prices fall, sometimes even turning negative.

There’s also the fact that the energy market is still not flexible enough to handle these peaks properly – storage systems are not yet widespread and balancing supply and demand is difficult. According to the Flemish regulator, up to one-fifth of solar power on the grid last year had no value. This may seem worrying, but it’s primarily a sign that it’s time to be more efficient with our energy use.

What does that mean for your solar panels?

First things first: don't panic, solar panels are still a wise choice. In 2024, they still delivered tidy savings – the average household saved 372 euros by using self-generated power, in addition to receiving an average of 75 euros for electricity injected into the grid. This means panels are still a worthwhile investment, especially when you match what you use to what you produce.

It’s still a good idea to stay alert, however. Around 500 Flemish households on variable contracts had to pay to put their power on the grid last year, and for some, this bill climbed to 90 euros a year. This clearly highlights the fact that many people do not know exactly what is written in their feed-in contract. A lack of transparency leads to surprises on your energy bill, so it pays to take a closer look at your contract.

What’s the smart way to deal with negative injection rates?

  1. Use energy while the sun is shining. Turn on your washing machine, dishwasher and charge point when your solar panels are generating the most. That way, you make the best use of your own power and avoid sending it to the grid when prices are negative. Even a small change in your daily routine can make a big difference.
  2. Consider a home battery. A home battery stores your excess power for later use, such as in the evening or on less sunny days. You increase your independence from the grid and avoid injection costs. Moreover, you have greater control of your energy consumption and make better use of your installation.
  3. Use an energy management system. These systems automatically match your consumption to your production as well as to current electricity prices. You don't have to plan anything yourself, as the system makes sure your appliances run at the right time. 
  4. Check your energy contract. Do you know what exactly is written in your feed-in contract? Use tools like the V-test or scan the QR code on your bill to see if your contract is still beneficial. Some suppliers even offer free power at peak times or happy hours at charge points. Taking a quick look can be surprisingly helpful.

Is it wise or wasteful to switch off your solar panels when prices are negative?

Some new inverters can automatically switch off your solar panels when the electricity price drops below zero. It sounds like a sensible choice, as you avoid costs by not putting power on the grid. However, it’s not always the best approach. If you’re still entitled to ‘green certificates’, you’ll get up to 450 euros per megawatt-hour produced, regardless of whether you consume that power yourself or inject it. In that case, it is often better to just keep producing, even with negative injection rates. That means it’s important to know how your installation and contract are structured before you decide to shut down your panels.

Keep your eye on the ball with KBC

If you’re thinking of installing solar panels or a home battery, get your quote from our partner ‘Impact us today’ and find out how much you can save. We also have tips if you’re looking to install solar panels. Lastly, did you know that our handy KBC Mobile app gives you all kinds of tips and insights into your energy consumption? Check it out for yourself!