Collective self-consumption (CSC) allows several individuals to share locally produced energy, offering economic and ecological benefits. This model, which is rapidly developing in France, is attracting increasing interest. However, its implementation requires a good understanding of its mechanisms, particularly the allocation key. This article guides you through the steps and principles of collective self-consumption, focusing on how to define a fair and effective allocation key for all participants.

Key Points of Collective Self-Consumption and the Allocation Key

• Collective self-consumption brings together producers and consumers around local energy production, often solar, managed by an Organising Legal Entity (OLE).
• The allocation key is the mechanism that determines how the energy produced is shared among the members of the operation, directly influencing the profitability for each.
• CSC projects are governed by regulations specifying the geographical perimeter (up to 20 km), the maximum power of installations (5 MW, or even 10 MW for certain projects), and require an agreement with the network operator, such as Enedis.
• The benefits of CSC include managing energy bills, valuing local production, and making a significant contribution to the energy transition.
• Any individual, company, local authority, or citizen can participate in a collective self-consumption operation, provided they meet the defined criteria and agree on the sharing arrangements, particularly via the allocation key.

Understanding the principle of collective self-consumption

Definition and key players in collective self-consumption

Collective self-consumption involves sharing locally produced electricity among several users within the same perimeter. This arrangement is not limited to a single household or company but involves various participants who coordinate around an installation (often solar).

The main players in a collective self-consumption operation are:

• The producers, who make their production installation available (most often photovoltaic panels).
• The consumers, who receive a share of the shared energy.
• The Organising Legal Entity (OLE), which structures the project and acts as the administrative point of contact.
• The distribution network operator (for example, Enedis).
• Electricity suppliers to supplement unmet local needs and buyers of any surplus.

This grouped approach promotes energy independence and better valorisation of renewable kWh, a central aspect highlighted in the promotion of local and renewable energy consumption.

How a collective self-consumption loop works

Collective self-consumption is organised around a « loop », i.e., a network of contractual and technical links to ensure electricity sharing. Here’s how it generally works:

1. Producers inject electricity into the local grid.
2. The OLE distributes this energy among consumers according to a predefined allocation key.
3. If production is insufficient, an electricity supplier makes up the shortfall. If there is a surplus, it can be sold to a third party.
4. All transactions are recorded and monitored by the network operator.

This organisation requires precise coordination among all stakeholders to ensure equitable redistribution and that everyone fully benefits from local production.

A concrete example: in an apartment block equipped with solar panels, each dwelling receives a percentage of the production as agreed, thereby reducing its energy bill from the traditional grid.

Distinction between individual and collective self-consumption

It is important to differentiate between:

Individual Self-Consumption	Collective Self-Consumption
A single producer-consumer	Several associated producers and consumers
Production for one’s own needs	Sharing and redistribution among members
Simple management (single contract)	Collective management via a Legal Entity
Offers limited autonomy	Allows for mutualisation, greater flexibility

Collective self-consumption is aimed at those who wish to benefit from the energy transition in a different way. With this organisation, it becomes possible to optimise local production and consumption, while benefiting from regulatory support, as illustrated by the progression of this model in France.

The foundations of the allocation key

The allocation key is at the heart of a collective self-consumption operation. It determines how locally produced energy is shared among participants. Without a clear method accepted by all, such an initiative cannot function fairly and effectively. It is about finding a balance between everyone’s needs and the available production.

Principles of sharing produced energy

Energy sharing in a collective self-consumption operation is based on principles aimed at optimising the use of locally produced renewable electricity. The main idea is to ensure that a maximum share of this energy is consumed by project members, rather than being injected into the public grid. This allows for the valorisation of local production and reduces dependence on traditional energy suppliers. Participants jointly define the terms of exchange, seeking for producers to sell their surplus at an advantageous price, and for consumers to buy electricity at a lower cost than the market price. The objective is to create a win-win system for all involved stakeholders.

Role of the Organising Legal Entity (OLE)

The Organising Legal Entity (OLE) plays a central role in the establishment and management of a collective self-consumption operation. It is responsible for structuring the project, coordinating participants, and ensuring compliance with established rules, particularly regarding the allocation key. The OLE can be a company, an association, or a local authority. It is responsible for contracting with the various stakeholders, including the network operator like Enedis, and for managing financial flows. Its role is to ensure the smooth running of the operation and to ensure that the objectives set, both economic and environmental, are achieved. The success of an operation largely depends on the OLE’s ability to organise and animate the community [fc53].

Importance of an agreement between participants

A clear and detailed agreement between all participants is absolutely essential for the success of a collective self-consumption operation. This agreement, often formalised in a contract or convention, defines the rights and obligations of each party, as well as the terms of energy and cost sharing. It must specify, in particular, the method for calculating the allocation key, consumption and production periods, and dispute resolution mechanisms. Transparency and consultation are paramount for building a lasting relationship of trust among members. This agreement must be flexible enough to adapt to changes, while remaining precise enough to avoid any ambiguity. It guarantees the fairness and sustainability of the project, ensuring that benefits are distributed fairly, in accordance with European directives on the internal electricity market [ab79].

Implementing a collective self-consumption operation

To set up a collective self-consumption operation, several key steps must be followed, in compliance with the current regulatory framework. These projects, although offering many advantages, require rigorous organisation to ensure their proper functioning and profitability.

Regulatory framework and recent developments

Collective self-consumption is governed by legal texts that have evolved to facilitate its deployment. These regulations define the conditions for energy sharing, the role of different stakeholders, and remuneration methods. It is important to stay informed of the latest legislative updates, as they can directly impact the structure and viability of a project. For example, recent adjustments may have clarified allocation rules or available aid for installations.

Eligibility conditions and geographical perimeter

For a collective self-consumption operation to be valid, several criteria must be met. Participants must be connected to the same electricity distribution substation. This means that producers and consumers must be located within a defined geographical perimeter, generally restricted to a neighbourhood, a business park, or a building. This geographical proximity is essential to limit losses during electricity transmission and to optimise network management. The precise definition of this perimeter is a decisive step in project design.

Maximum power of installations

Regulations also set a limit on the maximum power of solar installations that can be integrated into a collective self-consumption operation. Currently, this limit is set at 3 megawatts (MW). This threshold aims to promote a wider distribution of production and to avoid the concentration of large installations that could unbalance the local grid. It is therefore essential to correctly size the installation according to this constraint, while meeting the energy needs of the participants. The implementation period for such a project can vary, but it typically takes between 6 months and 2 years for its completion, a period that includes studies, administrative procedures, and the construction of the installation Implementing a collective self-consumption project typically takes between 6 months and 2 years.

The success of a collective self-consumption operation relies on meticulous planning and a good understanding of the rules that govern it. Particular attention must be paid to defining the perimeter and respecting power limits to ensure project compliance and efficiency.

Economic and environmental benefits of collective self-consumption

Collective self-consumption (CSC) offers a dual benefit, both economic and ecological, for participants. It allows for better control over energy expenditure while actively contributing to the ecological transition. This model promotes more local and responsible energy production and consumption.

Managing energy bills

One of the most direct benefits of collective self-consumption is the stabilisation and reduction of electricity bills. By sharing locally produced energy, members of a CSC operation can reduce their dependence on traditional energy suppliers and market fluctuations. This helps secure energy expenditure in the long term. Businesses, especially those not benefiting from regulated tariffs, find it a concrete way to reduce their operational costs. Local authorities, for their part, can achieve substantial savings on the bills of public buildings, such as town halls or schools. This mutualisation of solar production offers better budgetary predictability.

Valuing local production

CSC highlights small-scale renewable energy production. It allows for the valorisation of photovoltaic production by consuming it as close as possible to its source. This creates a green and local energy loop, strengthening the circular economy at a territorial level. Participants benefit from energy whose origin they know, often cleaner and more stable. This model supports the development of renewable energies and reduces the overall carbon footprint. It is possible to utilise office rooftops or car park canopies to produce this energy as an advantageous solution.

Contribution to the energy transition

Beyond financial aspects, collective self-consumption plays a significant role in the energy transition. It encourages the adoption of renewable energy sources and reduces dependence on fossil fuels. This model promotes more conscious and autonomous consumption, thereby reducing reliance on non-renewable energies. By participating in a CSC operation, citizens, businesses, and local authorities are concretely involved in the fight against climate change. They contribute to the creation of a more sustainable energy mix and the decentralisation of energy production. Engagement in these projects strengthens the local social fabric and the energy resilience of territories.

Who can participate in a collective self-consumption operation?

Collective self-consumption (CSC) opens its doors to a wide range of stakeholders, from businesses to ordinary citizens, including local authorities. The idea is to bring together entities sharing a common interest in more local and controlled energy production and consumption. In France, this model is booming, with a significant increase in active operations, demonstrating growing interest in this form of energy sharing.

Mobilisation of businesses and local authorities

Businesses, whether small or large, can find in collective self-consumption an effective way to reduce their electricity bills while addressing corporate social responsibility (CSR) issues. Local authorities, for their part, can play a driving role by initiating projects in their territories, thereby promoting energy independence and sustainable development. They can structure operations, sometimes relying on support solutions for administrative procedures and project management.

Role of citizens in projects

Citizens are at the heart of many collective self-consumption operations. They can act both as producers (by installing solar panels on their roofs, for example) and as consumers. The objective is to create energy loops where locally produced electricity is shared among members. This allows for better control of energy costs and a direct contribution to the ecological transition. Geographical proximity is a key factor, with participants generally needing to be located within 2 km of the production site and connected to the same distribution network, as stipulated by the regulatory framework.

Criteria for a virtuous citizen operation

For a collective self-consumption operation to be considered virtuous and equitable, several elements must be taken into account:

• Clear agreement between participants: Defining together the rules for distributing produced energy and the sharing arrangements is essential. This includes how costs and benefits are distributed.
• Transparent governance: The Organising Legal Entity (OLE), often an association, must ensure clear and equitable management of the operation.
• Valuing local production: The main objective is to maximise the consumption of locally produced energy, thereby reducing dependence on traditional suppliers and losses related to long-distance transmission.
• Defined geographical perimeter: Participants must be geographically close for energy sharing to be efficient and compliant with regulations, often within a radius of a few kilometres.

Collective self-consumption allows for the appropriation of energy production means, offering an interesting alternative to energy price volatility. It promotes more local and sustainable electricity consumption.

Defining the allocation key for equitable distribution

The allocation key is at the heart of a collective self-consumption (CSC) operation. It determines how locally produced energy is shared among participants. Establishing a fair and transparent key is essential for the success and sustainability of the project. Without a clear agreement on how kilowatt-hours are distributed, tensions can arise among members, compromising the spirit of cooperation that drives CSC.

Calculation methods for allocation

Several approaches exist for defining this key. The choice will depend on the project’s objectives and the group’s structure. Here are some commonly used methods:

• Equal share allocation: Each participant receives an identical share of the energy produced, regardless of their consumption or financial contribution. This is a simple method, but it may not reflect everyone’s actual needs.
• Proportional allocation to consumption: Energy is distributed based on each member’s historical or forecast consumption. This ensures that everyone receives a share of the produced energy corresponding to their needs.
• Investment-based allocation: The share of energy received by each participant is proportional to their financial investment in the production installation. This method rewards financial commitment.
• Mixed approach: It is possible to combine several criteria, for example, by allocating a fixed share to everyone and the remainder proportionally to consumption or investment.

The important thing is that the chosen method is understood and accepted by all members of the community.

Adapting the allocation key to needs

An allocation key is not set in stone. It must be able to evolve with the project and the needs of the participants. For example, if new members join the operation, or if the consumption of certain participants changes significantly, it may be necessary to revise the key. A certain flexibility is therefore desirable. It is also relevant to consider seasonal adjustment mechanisms, as heating or air conditioning needs vary throughout the year, as does solar production.

The allocation key must be a tool for solidarity and fairness. It must allow each member to benefit from locally produced green energy, while ensuring the economic viability of the operation. Good communication and transparent governance are the guarantors of a successful allocation key.

Impact of the allocation key on profitability

The way energy is shared has a direct impact on the savings made by each participant and on the overall profitability of the operation. A key that promotes maximum local consumption of produced energy helps reduce dependence on traditional energy suppliers and smooth out bills. For example, a key that encourages consumption of produced energy during daylight hours, via differentiated tariffs or consumption management systems, can significantly improve benefits for all. It is also important to consider the impact on management costs and the price per kWh to ensure that the operation remains attractive in the long term. A well-designed key contributes to managing energy bills for all members.

The role of the network operator in collective self-consumption

The network operator, primarily Enedis in France, plays an essential technical and contractual role in the proper functioning of collective self-consumption (CSC) operations. It ensures the connection of production and consumption installations to the distribution network, manages energy transit, and ensures the security and quality of supply for all participants.

Agreement with Enedis

The establishment of a collective self-consumption loop requires a specific agreement between the Organising Legal Entity (OLE) and the network operator. This document details the technical and contractual terms of the operation, particularly how locally produced energy is injected, transmitted, and consumed by project members. It defines the injection and offtake points, as well as the responsibilities of each party. This agreement is the cornerstone of the relationship between the CSC project and the public distribution network.

Management of energy transit

The network operator is responsible for the physical management of electricity transit from local production to the various consumers within the same collective self-consumption operation. It ensures that energy flows smoothly and securely, taking into account bidirectional flows (producer injection, consumer offtake). It precisely records the volumes of energy exchanged, which is essential for billing and cost allocation among participants. The accuracy of these measurements is fundamental for the transparency of the operation.

Consideration of network usage charges

Network usage charges, such as TURPE (Public Electricity Network Usage Tariffs), also apply to energy flows within the framework of collective self-consumption. The network operator is responsible for calculating and collecting these charges, which remunerate the maintenance and development of network infrastructure. How these charges are passed on to the members of the operation is a key element to define in the allocation key. It is important to understand how these costs impact the overall profitability of the project. Participants must be informed of these levies to anticipate the real cost of their shared energy. CSC projects may benefit from specific conditions, so it is advisable to inquire with Enedis for exact terms. Businesses and local authorities embarking on these projects can find useful information on the terms of application of charges.

It is important to note that the network operator does not participate in defining the allocation key itself, which is a decision for the members of the collective self-consumption operation. Its role is limited to providing the consumption and production data necessary for this allocation, as well as the technical management of flows.

Energy communities and collective self-consumption

Energy communities represent a natural evolution in the renewable energy landscape, and collective self-consumption (CSC) fits perfectly into this dynamic. An energy community, by definition, aims to provide environmental, economic, or social benefits to its members or its territory, rather than maximising financial profit. It can engage in various activities, including collective self-consumption, but this is not an obligation. Conversely, it is not necessary to form an energy community to set up a CSC operation.

Definition and objectives of energy communities

An energy community is a legal structure, often an association or a cooperative, whose primary purpose is to serve the interests of its members and its territory. Its objectives may include local renewable energy production, management of this energy, its sale, or the aggregation of production. The focus is on creating shared value and contributing to the local energy transition. The governance of these entities is designed to be democratic and participatory, ensuring that decisions reflect the needs and aspirations of the members.

Synergies between communities and CSC

Collective self-consumption finds fertile ground within energy communities. These provide a structured framework for organising the participation of citizens, businesses, and local authorities in shared solar projects. The mutualisation of resources, collective management of production and consumption, and equitable distribution of benefits are facilitated by the structure of an energy community. This helps create green and local energy loops, strengthening energy independence and social cohesion.

Possible activities for an energy community

Beyond collective self-consumption, energy communities can explore a wide range of activities to maximise their impact and benefits. These may include:

• Electricity production from renewable sources (solar, wind, biomass).
• Direct sale of this energy to members or third parties.
• Provision of energy services, such as energy efficiency or electric vehicle charging.
• Aggregation of decentralised energy production for resale on markets.
• Awareness-raising and training of citizens on energy transition issues.

These different activities can be combined to create robust and diversified economic models, adapted to the specificities of each territory. The implementation of such operations benefits from an evolving regulatory framework, encouraging the development of these new forms of energy management, as shown by recent developments.

Structuring as an energy community allows for moving beyond the simple logic of sharing solar production to create a genuine territorial project, uniting stakeholders around a common goal of energy transition and local development.

Optimising the allocation key to maximise benefits

For a collective self-consumption operation to be truly profitable, the way energy is shared must be well thought out. The allocation key is somewhat like the instruction manual to ensure everyone benefits. It’s not just about dividing production, but about finding a balance that satisfies everyone, producers and consumers alike.

Control solutions to synchronise production and consumption

Ideally, locally produced energy should be consumed locally. To achieve this, control systems can be used. These tools allow certain electricity consumptions to be shifted. For example, if a solar installation produces a lot in the middle of the day, the washing machine or electric car charging can be programmed to operate at that time. This maximises self-consumption and reduces the amount of energy that would otherwise have to be sold to the grid. It’s a smart way to match supply and demand within the community. Think of it as a clock that synchronises needs with available production.

Negotiating exchange tariffs between members

The allocation key concerns not only the quantity of energy but also its price. Members of the operation can negotiate together the tariffs at which energy is exchanged. The objective is twofold: the producer must be fairly remunerated for their investment, and the consumer must benefit from a more advantageous price than that offered by traditional energy suppliers. An agreement on these tariffs is really important for the project’s viability. The price per kilowatt-hour (kWh) must be competitive for everyone. This can be done via electricity purchase and sale contracts between members, taking into account production costs and the expected benefits for each. It’s a bit like a small local energy exchange.

Considering project values

Beyond purely economic aspects, it is relevant to consider the values that drive the collective self-consumption project. Is it a project focused on energy transition? Local solidarity? Innovation? These elements can influence how the allocation key is defined. For example, a community that emphasises inclusion might choose an allocation that favours smaller consumers or those with specific energy needs. The allocation key must reflect the spirit of the project and the common objectives of the participants. This is what gives meaning to the operation and strengthens everyone’s commitment. The idea is to create a positive dynamic that goes beyond simple financial transactions, aligning with the principles of the circular economy.

Defining a fair and appropriate allocation key is a cornerstone for the long-term success of a collective self-consumption operation. It must be flexible enough to evolve with members’ needs and market conditions, while remaining understandable to all participants. A good allocation key contributes to overall profitability and the satisfaction of the entire energy community.

Prospects for the development of collective self-consumption

Collective self-consumption (CSC) is experiencing significant growth in France, driven by increased awareness of energy issues and a desire to control costs. This model, which allows several consumers to unite around local energy production, offers interesting prospects for various stakeholders.

Growth of active operations in France

The number of collective self-consumption projects in France is constantly increasing. This dynamic is explained by several factors, notably the current context of energy price volatility, which encourages consumers to seek solutions to stabilise their expenditure. Furthermore, the decrease in the cost of photovoltaic technologies makes these installations more accessible. The evolution of the regulatory framework has also played a key role in clarifying implementation procedures and providing a secure framework for participants.

Factors stimulating the rise of CSC

Several elements contribute to the expansion of collective self-consumption:

• Economic context: Rising energy prices push households and businesses to seek more stable and economical alternatives.
• Technological advancements: The decrease in the cost of solar panels and storage systems makes projects more profitable.
• Regulatory support: Legislative developments and aid schemes encourage the development of these initiatives.
• Environmental commitment: The desire to participate in the energy transition and consume greener, local energy motivates many citizens and local authorities.

Collective self-consumption represents a concrete opportunity to democratise renewable energy production and strengthen the energy resilience of territories.

Potential of collective self-consumption

The development potential of CSC is considerable. It is an adaptable model that can be deployed in different contexts: urban, rural, industrial, or tertiary areas. Synergies between different stakeholders, whether local authorities, businesses, or citizens, allow for the creation of virtuous energy loops. CSC is no longer a niche, but a real path towards greater energy autonomy and a faster ecological transition. Optimising allocation keys and managing production surpluses are key aspects that will continue to be refined to maximise benefits for all participants.

Collective self-consumption opens up great opportunities for the future of energy. It’s a smart way to produce and share your electricity. Want to know more about how it works and how to get started?

Discover all the possibilities and steps to follow on our website. We guide you so you can easily understand and participate in this energy revolution.

To conclude: is collective self-consumption a path for the future?

Collective self-consumption is a bit like creating your own small energy network, where neighbours help each other. It requires organisation, clear agreement on the rules, and going through a few administrative steps. But when you see the advantages, such as better control over electricity bills or concrete participation in the ecological transition, it’s really worth looking into. It’s somewhat new for everyone, but it’s developing quickly. If you have a project in mind, don’t hesitate to find out more and seek support. It’s a great way to take control of your energy future, together.

Frequently Asked Questions

What is collective self-consumption?

It’s when several people, for example neighbours or businesses in the same area, decide to produce electricity together, often with solar panels, and consume it among themselves. It’s like a large group sharing the energy they produce.

Who organises a collective self-consumption operation?

Generally, a group of participants chooses an individual or an association to take care of everything. This person, called the ‘Organising Legal Entity’ (OLE), handles the procedures, signs agreements, and ensures everything runs smoothly between producers and consumers.

How is electricity shared among participants?

Participants agree on rules to decide who receives what amount of produced electricity. These rules are important to ensure fair sharing for everyone. It’s a bit like deciding how to share a cake.

Do you have to pay to use the electricity grid?

Yes, when the produced electricity flows through the usual power lines to reach neighbours, there are charges for using that grid. This is different from self-consumption where you only consume your own production without using the grid.

What are the benefits of collective self-consumption?

It allows you to pay less for your electricity, to know where the energy you use comes from, and to contribute to environmental protection by using clean, local energy. It’s good for your wallet and for the planet!

Who can participate in these projects?

Almost everyone! Residents, businesses, local councils, associations… The idea is to bring together people who want to produce and consume energy together in a defined geographical area.

What is the maximum distance between participants?

Generally, producers and consumers must be quite close. The rules state a maximum of 2 km in urban areas, 10 km in rural areas, and 20 km in very rural areas. This is to keep the energy truly local.

Is collective self-consumption the same as an energy community?

Not quite. An energy community is a group whose aim is to help its neighbourhood or members, not just to make money. Collective self-consumption can be one of the activities of such a community, but you can engage in collective self-consumption without being an energy community, and vice-versa.