The transition to renewable and fossil-free electricity generation is crucial to mitigate climate change. Solar photovoltaics (PV)

is the fastest-growing source of electricity globally, with many governments setting ambitious targets to increase PV capacity.

Unlike support schemes for utility-scale PV, wind, and hydropower, decentralized PV can be incentivised through mechanisms

targeting local energy communities.

Virtual self-consumption enables grid customers to collaborate and share the benefits of local, decentralised electricity generation.

Since 1 October 2023, Norway has allowed virtual self-consumption for grid consumers on the same property, primarily targeting

apartment buildings. A proposal for a broader virtual self-consumption scheme is proposed from 1 January 2026. This paper

evaluates the impact of virtual self-consumption on profitability of PV systems.

The proposed scheme offers increased benefits through reduced electricity consumption taxes and other grid fees, where applica-

ble. The results presented show how virtual self-consumption induce savings for > 4,000 Norwegian buildings, based on real-life

hourly smart metre data and simulated PV generation for the same locations. For large scale grid customers with capacity-based

tariffs, the scheme gives average savings equivalent to 31.2% of levelised cost of electricity for every kilowatt-hour virtually

self-consumed. For smaller scale grid customers with energy-based tariffs, the average savings per virtually self-consumed

kilowatt-hour are 61.8% of levelised costs of electricity. The savings on average reduces payback time with 6 years for large

scale grid customers and 22 years for small scale grid customers.