Cross subsidies across electricity network users from renewable self-consumption.

Summary The deployment of renewable energies relies upon incentive policies to make their use profitable for the owner. Increasing costs of renewable support result in rising public service obligation tariffs to fund these policies. The photovoltaic prosumption could help decreasing the cost of developing renewables but induces cross-subsidies between prosumers and other users of the network that may compensate the benefits. We show that such cross-subsidies do occur but are dependent on the self-consumption rate that will remain low in the coming years. The regulator could fund these cross-subsidies by increasing the fixed part of the network tariff for prosumers only.