MAKE MONEY MAKING ELECTRICITY

Chile’s Net Billing framework, governed by Law 20.571 (amended by Law 21.118), allows residential and commercial users to generate their own renewable energy, consume it, and sell surplus electricity back to the grid at a regulated price. Systems can be up to 300 kW, providing significant energy cost reductions and promoting self-consumption. 

Key aspects of the Net Billing law in Chile:

• Eligibility: Applies to regulated customers (residential, small commercial/industrial) using renewable energy (solar, wind, etc.).
• Capacity Limit: The maximum capacity allowed for self-generation projects was increased to 300 kW.
• Compensation for Excess Energy: Surplus energy injected into the grid is credited to the electricity bill at a rate equivalent to the price paid to the distribution company.
• Procedure: Projects must undergo a connection procedure with the distributor. The law ensures the right to inject energy into the distribution network.
• Benefits: Reduces energy bills, encourages the use of non-conventional renewable energy (NCRE), and contributes to sustainability goals. 

The law was initially introduced in 2012 and has been improved to foster a boom in distributed generation (often referred to as Net Billing) throughout the country.