Production of electricity for own use
Information for individuals and smaller entities about micro and small power plants, connected to the distribution system
Micro-power plant (<12kW)
Micro-power plants are defined as electricity production with an installed capacity of less than 12kW (16A) and are intended solely for own use.
Those who install micro-power plants are not authorized to sell excess energy to the distribution system and therefore do not have to enter into a contract with an electricity supplier. So-called feed-in tariffs do not apply in these cases.
Although this is self-use production, it is mandatory to notify Veitur of the installation before connection. This is primarily done to ensure safety. Only licensed electrical contractors, registered with the Housing and Civil Engineering Authority (HMS), may handle the installation.
Small power plant (12-100kW)
A small power plant is defined as an electricity production facility with an installed capacity between 12-100kW, where the user is authorized to sell excess energy to the distribution system. To do this, an agreement must be made with an electricity supplier who is responsible for selling energy and paying the power plant owner for the electricity delivered.
Before a small power plant is connected to the distribution system, an application must be submitted to Veitur, where an assessment is made of whether it is possible to connect the power plant to the existing infrastructure, or whether reinforcements such as the expansion of the local loop are required.
Small power plants pay an annual feed-in fee according to Veitur's tariff, which depends on the size of the power plant. See Veitur's price list.
In return, Veitur pays the benefit saved due to a reduced audit from Landsnet to the power plant operator.
In the case of a power plant up to 100kW that uses the production almost entirely on site, there is a possibility of authorization to connect on the same grounds as a small power plant. The power plant owner then does not pay an annual feed-in fee, and no contract is made with the electricity supplier.
Is it permitted to connect a power plant over 100kW?
Power plants with an installed capacity of over 100kW are examined separately. The minimum requirements are the same as for small power plants, but in addition it is necessary to consider whether the power plant is in-phase or out-of-phase, whether a joint venture agreement is necessary and whether Veitur requires direct access to the power plant's control from the Veitur control center. Contact us at veitur@veitur.is for further information.
What do you need to do next?
The installation process and information that needs to be submitted to Veitur.
The process of installing micro-power plants with Veitur
1. Familiarize yourself with the process at the Environment and Energy Agency
2. Negotiate with a licensed electrical contractor who is responsible for the installation and compliance with the relevant regulations
3. The electrical contractor reports the work to HMS
4. Report the installation of the micro-power plant to Veitur with the information specified below, by sending an email to veitur@veitur.is
The process of installing small power plants in relation to Veitur
1. Familiarize yourself with the process at the Environment and Energy Agency
2. Submit an application to Veitur. The application should be sent to veitur@veitur.is and should include the information specified below. It should also be stated whether the power plant owner intends to sell electricity to the distribution system or only produce electricity for their own use.
3. Negotiate with a licensed electrical contractor who is responsible for the installation and compliance with the relevant rules
4. The electrical contractor reports the work to HMS
5. The electrical contractor receives certification from HMS. This certification must be available before energizing is permitted
6. Energizing carried out in accordance with agreement with Veitur
Information that must be submitted with the notification - applies to both micro and small power plants
1. General information
- Connected meter number
- Connection point address
- Name and contact details of the applicant
- Name and contact details of the licensed electrical contractor responsible for the installation
2. Equipment specifications
- Primary energy source (solar energy, wind)
- Confirmation that the processing unit complies with ÍST EN 50549-1
- Confirmation that the equipment is CE marked
- Total output (kW)
- Manufacturer of the processing unit
- Batteries: are they part of the system? (Yes/No) If yes: Type, capacity and whether they are connected to the grid
3. Connection to distribution system
- Single-line diagram (PDF) showing connection to indoor and distribution system
- Voltage and phase (1-phase / 3-phase)
4. Operation
- Expected installation date