Solar Energy in Portugal: Opportunities and challenges for companies investing in Self-Consumption Production Units (UPACs)

In addition, the adoption of the legal regime for Self-Consumption Production Units (UPACs) has also allowed these units to gain a lot of prominence in Portugal. These units are becoming an increasingly viable and attractive option for companies and investors, driven by a legal framework that incentivises the use of photovoltaic solar energy.

 

Portugal's regulatory environment is robust, detailed and complementary to European directives, which aim to promote renewable energy and energy efficiency. Decree-Law No. 15/2022, of 14 January, is one of the main regulatory instruments in this context, as it partially transposes EU Directives 2018/2001 and 2019/944. It regulates energy production in consumption facilities and promotes the use of renewable sources. Additionally, it defines the collective self-consumption regime, allowing associations between consumers and nearby production units.

Investing in a solar self-consumption production unit not only fulfils Portugal's national strategy as a country that wants to create a new economic hub through energy, but it also proves to be an advantageous strategy from a financial and environmental point of view. Installing photovoltaic systems allows companies to produce their own electricity, resulting in a significant reduction in operating costs and protection against fluctuations in electricity prices. These savings provide a rapid and substantial return on investment (ROI).

 

Recently, Order no. 1177/2024 of 31 January established the conditions for exemption from network access charges for self-consumption, further encouraging the creation of renewable energy projects and communities.

To further facilitate the implementation of self-consumption projects, Order no. 46/2019 of 30 December simplified the administrative procedures required to obtain the prior control title for energy production. This order is complemented by Order no. 16/2020 of 23 January, which specifies the fees applicable to the installation and operation of UPACs, offering transparency on the financial costs involved.

 

In addition to the obvious financial benefits for the industry and the natural predictability of energy costs (so essential for any industry, whether Portuguese or foreign), investing in solar energy reinforces the company's image as a responsible and sustainable entity in the market, a characteristic that is increasingly valued by customers and business partners.

The selection of high-quality photovoltaic equipment is a decisive factor in ensuring the efficiency and durability of the system. Given the need to ensure high-quality photovoltaic equipment, Dispatch No. 4/2020, of 3 February, approved the Inspection and Certification Regulation ensuring that photovoltaic systems meet the necessary technical requirements to promote efficiency and safety.

 

Therefore, investing in quality equipment and hiring installation services from certified companies is an essential strategy to guarantee the long-term success and profitability of the project. Quality equipment ensures higher efficiency, less need for maintenance, and reliable performance, making it a wise choice for companies seeking to combine energy efficiency with sustainability.

 

In summary, the Portuguese legal framework is favourable to the adoption of photovoltaic solar energy, offering a clear and promising regulatory environment. For companies, the decision to invest in UPACs must be accompanied by a careful selection of equipment’s and providers, ensuring not only legal compliance but also a sustainable financial return and an effective contribution to environmental sustainability.