Configuring residential PV net-metering policies - A focus on the Mediterranean region

Several parts of the Mediterranean basin are experiencing grid parity nowadays, which is a sign that Photovoltaic (PV) technology has become competitive to conventional energy sources and may continue to develop without support. The net-metering policy takes advantage of the grid parity situation and is considered a step away from fading Feed-in Tariff schemes. Nevertheless, several policy variations make the decision about a specific net-metering scheme a complicated task. Therefore, the aim of this paper that deals with residential PV systems is two-fold. The first aim is to present a methodology that identifies the appropriate general net-metering scheme given the particularities and local conditions. The second goal is to examine the parity situation and compose net-metering policy recommendations in 6 Mediterranean countries. The current net-metering policy in Cyprus, which sets a grid charge on PV prosumers, is used as a case study under 3 scenarios. The first simulates the current policy in Cyprus, the second simulates self-consumption and different partial-netting schemes, and the third a partial-netting scheme with variable netted network charges. The results reveal that partial-netting policies with shorter timeframes of rolling credits and higher grid charges offer advantages that can be utilized for effective net-metering policies.