Have you ever thought about being both a producer and a consumer of electricity at the same time?
This is exactly what the concept of a prosumer allows—combining two roles to achieve savings and contribute to sustainability. But who exactly are prosumers, and is this model financially viable in Bosnia and Herzegovina?
Source: bljesak.info
What Does It Mean to Be a Prosumer?
The term “prosumer” comes from the English words producer (manufacturer) and consumer (user). A prosumer is an end user of electricity who produces part of their energy from renewable sources, most commonly through solar panels installed on their home’s roof. The energy they do not consume can be fed into the power grid and “saved” for later use.
For example, a household that consumes around 4,000 kWh of electricity annually could install a 4 kW solar power plant on a 20 m² roof, costing approximately 4,000 BAM. This would significantly reduce their electricity expenses, and the surplus energy produced in the summer could be used in the winter.
How to Become a Prosumer in Bosnia and Herzegovina?
Becoming a prosumer is not a simple process, but it is feasible. The steps include:
- Installing solar panels on your roof.
- Obtaining the necessary permits from relevant authorities and distribution operators.
- Signing a contract with the electricity distributor.
After completing these steps, you become a user who can produce energy for personal use and choose between two billing schemes:
- Net metering: Excess energy is recorded as an energy credit.
- Net billing: Excess energy is converted into monetary compensation based on agreed terms.
By installing a power plant, obtaining the necessary permits from ministries and distribution system operators, and signing a contract with the distributor, the consumer acquires the right to be both a producer and a consumer of renewable electricity, thus gaining prosumer status.
As a prosumer, they can generate electricity to cover part of their consumption, thereby reducing electricity bills. In practice, this means that during summer, a prosumer may consume all the electricity they produce, eliminating the need to purchase electricity from their supplier. Any surplus beyond their needs is fed into the grid, where their supplier “stores” it for the winter months when the prosumer consumes more than they produce. This stored energy is then returned through a reduction in electricity bills.
The surplus energy can be accounted for in two ways:
- Energy credit: Reduces the amount of electricity drawn from the supplier.
- Monetary credit: Converts surplus energy into financial compensation at a rate of 90% of the electricity cost (excluding grid fees).
This is the key difference between choosing net billing (monetary credit) or net metering (energy credit).
Opportunities and Challenges for Prosumers in Bosnia and Herzegovina
While the prosumer concept is growing in the region—led by Slovenia with 50,000 prosumers, followed by Croatia and Montenegro—Bosnia and Herzegovina is still lagging.
The main issues include:
- A complex permit issuance process that still needs simplification.
- The lack of VAT treatment for prosumers, pending regulatory changes.
- Unclear procedures for connecting solar power plants to the grid.
On the positive side, the Renewable Energy Law provides subsidies for setting up such installations. However, slow regulatory adaptation currently limits the faster development of this concept in Bosnia and Herzegovina.
Why Become a Prosumer?
Beyond obvious savings, prosumer status offers several advantages:
- Energy independence – reduced reliance on external suppliers.
- Environmental awareness – contribution to reducing CO₂ emissions.
- Long-term profitability – while initial investments may be high, the return on investment comes through reduced electricity costs.
- Investment vs. savings ratio – payback time is relatively short, at most four years. With rising electricity prices, the return will be even faster.
Time for Action
Bosnia and Herzegovina has enormous potential for growing the prosumer model, but this potential must be supported by effective legislative and regulatory frameworks.
Although authorities have introduced necessary acts and procedures, the process is still stalled as utility companies have yet to implement them. These companies currently hold the keys to unlocking the system.
With hope for acceleration in the process, if you wish to be part of the energy transition and achieve real savings, becoming a prosumer is certainly an option worth considering.
For citizens of Bosnia and Herzegovina, the biggest challenge remains adapting existing procedures and utilizing available subsidies, while businesses also have the opportunity to become prosumers.
With some patience and timely information, you can join the global trend of energy independence and sustainability.