What is Surplus Energy from Solar Power?
Surplus energy from solar power is generated when a photovoltaic (PV) system produces more electricity than is currently needed by a household or business. In private homes, peak electricity usage typically occurs in the mornings and evenings, while south-facing photovoltaic systems produce the most electricity around midday. This results in a surplus of electricity at midday that cannot be immediately used.
<div fs-richtext-component="info-box" class="info-box protip"><div class="flex-info-card"><img src="https://assets-global.website-files.com/65098a145ece52db42b9c274/650c6f4b151815fb0be48cec_Lightning.svg" loading="lazy" width="64" height="64" alt="" class="icon-info-box"><div fs-richtext-component="info-box-text" class="info-box-content"><p class="color-neutral-800">This surplus solar power can be stored in batteries or fed back into the grid. However, both options are not very lucrative: battery costs are around €1,000 per kWh, and there is little to no compensation for feeding electricity back into the grid. A more attractive option could be to use the excess electricity for Bitcoin mining.</p></div></div></div>
How Can Surplus Energy Be Used?
Battery Storage: Surplus solar power can be stored in batteries and used later, such as during the evening.
Water Heating: Surplus energy can be used to heat water, reducing heating costs.
Heat Pumps: Excess electricity can support the operation of heat pumps, further increasing self-consumption.
Charging Electric Vehicles: Surplus solar power is ideal for charging electric vehicles, reducing the cost of charging.
Bitcoin Mining: The excess electricity can be used for mining cryptocurrencies like Bitcoin by powering high-performance computers that compute new blocks and verify transactions.
More details can be found here: Bitcoin Mining.
What Are the Benefits of Bitcoin Mining?
Efficient Use of Surplus Energy
Surplus solar power, which would otherwise be fed into the grid, can be effectively used for Bitcoin mining. Instead of merely storing the electricity or selling it for low returns, it can be utilized to operate Bitcoin miners and maximize their uptime. The integration into daily life is made easy with a simple setup and the use of a smart plug app, allowing you to decide when the miner is active, thereby optimizing the use of excess energy.
Reduced Grid Load
Direct consumption of surplus electricity does not burden the grid and avoids potential overload. This method allows for sustainable use of resources while offering the opportunity to generate Bitcoin, which can be economically beneficial in the long term.
Accelerated Payback of the PV System
While the payback period for a solar system with regular grid feed-in often takes 12–14 years, it can be significantly shortened by using it for crypto mining. This could lead to a faster return on investment.
Who Is Bitcoin Mining Suitable For?
1. Entrepreneurs with Bitcoin Holdings: If you already own Bitcoin in your business and are considering additional purchases, Bitcoin mining could be an attractive option. The cost of mining hardware and operating costs (e.g., electricity) can be claimed as business expenses for tax purposes. Consult your tax advisor to explore this option.
2. Owners of Photovoltaic Systems: If you already have a PV system or are planning to install one and manage your self-consumption well, Bitcoin mining offers a sensible use of surplus energy.
3. Independent Power Producers Without Grid Connection: If you produce your electricity as an "island" and want to avoid the high costs of a grid connection, Bitcoin mining can be an efficient use of your surplus power.
4. Professional Power Producers: Operators of hydropower plants, wind farms, or large solar installations can use surplus power profitably through Bitcoin mining, creating additional revenue streams.
How to Implement It in Practice?
1. Method: Do It Yourself
You can set up Bitcoin mining yourself, including the miner and smart power control. With some technical know-how and tools like whattomine.com, you can also create your profitability calculations.
If you need support, our partner ueberschussenergie.de offers a comprehensive 3-step service package, ranging from consulting to procurement and installation. All services can also be booked separately:
Consulting/Planning: Tailored advice and planning precisely aligned with your energy needs.
Procurement: Assistance in selecting and purchasing the appropriate hardware for your mining requirements.
Installation: Professional installation and commissioning of the systems by experienced experts.
2. Method: Collaboration with Specialized Companies
Another option is to work with professional providers who handle the entire process for their customers. These providers take care of everything from procuring the appropriate hardware to hosting and providing comprehensive all-around service.
An example of this is our partner Bitkern, which has been successfully operating in this field since 2017 and offers customized solutions for Bitcoin mining.
Understanding the Tax Implications of Crypto Mining
Tax implications for crypto mining depend on your country's regulations and whether your mining is considered a private activity or a business. Generally, mining rewards are taxed as income upon receipt and as capital gains upon sale.
When you receive mined cryptocurrency, it's taxed as income based on its fair market value at that time. Upon disposal, you'll face a capital gain or loss, depending on the change in value since you acquired it.
For more details, check our tax guides for various countries: US, UK, Germany, Austria, Switzerland, Italy, France, Spain, Belgium, and the Netherlands.
Your Legally Compliant Crypto Tax Report with Blockpit
With the Blockpit Crypto Tax Calculator, you can quickly and easily generate your personal Bitcoin tax report as a convenient PDF.
Blockpit supports German tax regulations, allowing you to categorize and assign all your transactions in compliance with the law.
In addition to pre-filled tax forms, Blockpit also provides a detailed transaction report of all tax-relevant transactions, which you can present to the tax authorities if needed.
Want to see every detail? Here’s the complete PDF of our crypto tax example report.