Understanding Portugal's UPAC Framework: What It Means for Residential Solar
Portugal's self-consumption regulatory framework — known as UPAC (Unidade de Produção para Autoconsumo) — governs how residential solar systems connect to the grid, how surplus energy is compensated and what registration and licensing requirements apply. Understanding this framework is essential context for any financial assessment of a residential photovoltaic system.
The framework distinguishes between energy you consume directly from your panels (self-consumption, which avoids purchasing that electricity at retail rates) and surplus energy you export to the grid (which is compensated at a rate set by ERSE, typically considerably lower than retail). This distinction is central to the financial case for solar and is often underemphasised in installer presentations.