Part of the cost of introducing new or extending existing ESG standards is covered by subsidy schemes aimed at financing environmental projects, social initiatives or corporate governance, e.g. financial subsidies for the installation of photovoltaic panels in homes. Photovoltaic panels aim to:
The purpose of photovoltaic panels is to convert solar energy into electricity (as to solar collectors, which only convert solar energy into heat).
At first glance, this initiative appears to be an environmentally and economically viable solution. However, as time passes, legal and practical complications are emerging that point to the need for a more comprehensive assessment of the impacts of PV panels, including their potential negative consequences, in line with the legal and regulatory frameworks governing environmental protection and sustainable development.
The problem with PV panels in practice occurs mainly in the summer months, when more solar energy is generated than the user of the PV panels can consume. The solution is:
a) An electricity harvester;
b) buying (selling) surplus solar energy;
c) storing excess solar energy in batteries or
d) or failing to address the problem, which in practice means letting excess electricity flow freely.
However, the above solutions often do not necessarily have positive impacts on the environment or our motivation.
The paradox is that we are striving for 'green' energy production for households or industry, but we cannot usefully process and utilise the energy produced. It is, in fact, like trying to save water and having a dripping tap. Not to mention the fact that operating this equipment consumes additional energy and generates additional costs.
In the Czech Republic, an electricity harvesters are widely used, which raises a considerable degree of debate and controversy. However, this trend is gradually spreading to Slovakia, with the first harvester to be installed near Martin.[2]
The introduction of harvesters into electricity systems as a solution to excess electricity could have a negative impact not only on the environment and global warming, but also on the financial burden on consumers who choose to invest in PV panels. In addition to the initial costs associated with the purchase of the harvester, consumers would also face additional expenses for its maintenance, as well as for the operation and maintenance of the PV systems themselves, which would add to the overall economic burden of these technologies.
So is energy production through photovoltaic panels really green? The production is probably yes, but the disposal of the surplus is less so. Is this not greenwashing in practice that we are trying so hard to combat? So which of the above solutions is the least burdensome on the environment?
The ideal is to consume all the energy produced. If this is not possible, it is preferable, as mentioned above, to store the surplus in batteries for later use.
Today, we are not only familiar with, but also apply in practice, legislation (directives, regulations, laws and others) that aim to positively influence the environmental behaviour of large corporations.
In pursuit of ESG objectives, the EU has adopted several directives that aim to achieve the stated ESG challenges (e.g. CSDDD[3] , CSFR Directive[4] , EU Parliament and Council Directive 2024/1799)[5] . The Slovak Republic is also responding to EU legislative changes and taking them into account in its legal order. Currently, a draft law submitted by the Ministry of Economy of the Slovak Republic has appeared on the legislative floor, which follows the Directive 2024/1799 of the European Parliament and of the Council of the EU. As stated in the explanatory memorandum to the draft law, its aim is to promote sustainable consumption through repair services.[6]
Although the Directives do not contain a direct standard that can be directly applied to this issue, the preambles of the Directives contain a number of commitments by the EU to act in accordance with sustainability and environmental principles.
i. According to point 16 of the preamble of the CSDDD, the aim is to ensure that companies operating in the internal market contribute tosustainable development by preventing, mitigating, eliminating, minimising or remedying such negative impacts .[7]
ii. According to point 48 of the preamble of the CSFR Directive, reducing energy consumption and increasing energy efficiency are key to achieving a climate-neutral and circular economy.[8]
iii. According to point 1 of the preamble of Directive 2024/1799 of the European Parliament and of the Council of the EU, in the context of the green transformation, its aim is to promote more sustainable consumption.[9]
The discrepancy between the theoretical environmental benefits and the practical implications of using PV panels highlights the need for a balanced approach in the implementation of renewable technologies. It is therefore crucial that the design and implementation of these systems (including legal regulations) should not only focus on the production itself, but also on optimising its use and minimising losses that may ultimately jeopardise the sustainability of the whole process.
These challenges underline the need for (i) further research and innovation in the field of sustainable energy and (ii) a responsive approach to regulation that would positively contribute to setting up "green processes" in our society in order to achieve real benefits for the environment and society as a whole.
If you have an environmental project among your goals or in your head that is eligible for a grant, we will be happy to help you prepare the documents for its successful implementation.
