Capacity-based grid fees for residential customers

In general, residential customers pay for every unit of energy (kWh) consumed. This tariff includes a component for energy and a component for using the grid. The latter represents the costs for network operation. Yet, this system is not suited for rising levels of self-generation of energy. Lower off-take will lead to a redistribution of grid costs. A possible solution might be a grid tariff based on load in kW instead of energy off-take. Such tariffs exist, but are not used for residential customers. In this paper, it is analyzed whether these existing tariffs are suited for high shares of self-generation. Results indicate that a load-based tariff is a reasonable solution. Yet, if storage is considered, a combination of a fixed component, an energy component and a load component offer better results.