Installing solar panels in an EU member state gives you more than just lower electricity bills — it potentially entitles you to sell excess electricity back to the grid at a guaranteed or market rate under the national feed-in tariff (FIT) or feed-in premium (FIP) scheme. The EU's Renewable Energy Directive (RED II) requires all member states to permit prosumers (self-consuming electricity producers) to receive fair compensation for their grid exports. But the feed-in tariff entitlement — and the contractual arrangements that govern it — varies significantly between member states, between utilities, and depending on your system size. The solar installation contract and the grid connection/feed-in agreement are often separate documents, and the interaction between them affects your financial return on the investment.
What is a Feed-in Tariff?
A solar energy feed-in tariff contract is an agreement between a prosumer (a household or business that both consumes and produces electricity) and a utility company or grid operator, establishing the rate at which surplus electricity exported to the grid is compensated. Under the Renewable Energy Directive (EU) 2018/2001 (RED II), member states must ensure that prosumers with systems up to a certain capacity (at least 30 kW) can participate in feed-in schemes without disproportionate administrative requirements. The contract specifies the feed-in rate (fixed tariff or market-linked premium), the measurement period, metering requirements, contract duration, and what happens when the tariff period ends.
Red flags to watch for
Some member states offer guaranteed tariff rates for 15–20 years; others offer market-linked rates that fluctuate. A contract that locks in a fixed rate protects you from falling electricity wholesale prices. A market-rate contract shifts price risk to you — verify which applies and how the rate is indexed.
The solar installation contract (with the installer) and the grid connection/export agreement (with the utility) are often signed separately. Inconsistencies between them — regarding system size, inverter specifications, metering type, or export limits — can delay grid connection or trigger costly modifications.
Some utilities impose zero-export or limited-export requirements for grid stability reasons, particularly in areas with high solar penetration. If your system is larger than the permitted export limit, significant generated electricity may be wasted or curtailed rather than exported. Verify whether an export limit applies before sizing your system.
Net metering (where the meter runs backwards on export) is different from gross metering (where import and export are separately measured). The FIT rate and your overall financial return differ significantly depending on the metering structure. Verify which arrangement applies and that the contract reflects it.
If you sell your property, the feed-in tariff contract may terminate — requiring the buyer to enter a new agreement, potentially at a different (lower) rate. A transferable FIT contract is an asset that adds value to a property sale. Verify transferability before signing.
Your legal rights
EU prosumer rights are established by the Renewable Energy Directive (EU) 2018/2001 (RED II), Article 21, which requires member states to: ensure prosumers can produce, consume, store, and sell renewable electricity; not discriminate against prosumers in their network tariffs or regulatory requirements; and ensure prosumers receive fair compensation for their grid exports. The Internal Electricity Market Directive (EU) 2019/944 reinforces active consumer rights including the right to switch supplier and to be protected against disconnection. National implementation varies — each member state's national energy regulator (e.g., Bundesnetzagentur in Germany, CRE in France, ARERA in Italy, CNMC in Spain) implements the RED II framework. Disputes can be referred to the national energy regulator, an energy ombudsman (where one exists), or civil courts.
Questions to ask before you sign
- 1Is the feed-in tariff rate fixed or market-linked — and for how long is any fixed rate guaranteed?
- 2Does the grid connection agreement impose an export limit, and if so, how does this affect my system sizing decision?
- 3Is my import and export measured separately (gross metering) or on a net basis — and how does this affect my feed-in income?
- 4If I sell the property during the FIT contract term, can the contract be transferred to the buyer?
- 5What happens at the end of the FIT contract term — does the export right continue at a market rate?
- 6Are there any administrative conditions I must meet to maintain the feed-in tariff entitlement — such as periodic system inspections or metering certification?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.