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European PV Energy incentives

October 27, 2009

The Feed-in Tariff (FIT) is an bonus made to reward the production of renewable energy both by households and investors. Power companies are asked to buy back, at rates higher than the market, power coming from renewable sources; such as wind, thermal solar, PV solar, biomass, hydro and geothermal. This tariff is also named Feed-in Law, Solar Premium, Renewable Tariff or Renewable Energy Payments. FIT helps make the production of renewable energy competitive. Usually governments pledge the tariff for up to 15, 20 or even 25 years from the date of the putting in place.

The development of sources of renewable energy is considered necessary to avoiding climate change. The cost of producing renewable energy is still higher than the cost of producing energy from traditional supplies. FIT tries to compensate for this difference, thus making more attractive renewable energy installations, asking the utility company to repurchase and reuse the power produced by renewable installations. The difference in cost is spread over all of the customers of the utility company. FIT requires net metering regulation to account for energy purchased from the grid and energy sold to the grid.

FIT is considered more effective than quotas levied on power companies, because it meets the morals of people. What follows is a simplified overview of FIT policies by some European countries.

COUNTRY BRACKET 1
(0 < 5 kWp)		 BRACKET 2
(5 < 10 kWp)		 BRACKET 3
(> 10 kWp)		 YEARS NOTE
Austria 0.46 €/kWh 0.40 €/kWh 0.30 €/kWh - lower after 10 yrs
Belgium 1.09 €/kWh 0.82 €/kWh 0.54 €/kWh 15 lower after 10 yrs, < 250 kWp
Bulgaria 0.40 €/kWh 0.36 €/kWh 0.36 €/kWh - lower after 10 yrs, bracket 3 = bracket 2
Czech Republic 0.53 €/kWh 0.53 €/kWh 0.53 €/kWh 20 fixed
France 0.55 €/kWh 0.55 €/kWh 0.55 €/kWh 20 fixed, 0.30 €/kWh ground
Germany (0 < 30kWp) 0.43 (30 < 100 kWp) 0.41 €/kWh (100 < 1000) 0.40 €/kWh 20 > 1000 kWp 0.33 €/kWh
Greece (0 <100 kWp) 0.46 €/kWh (> 100 kWp) 0.40 €/kWh 10
Italy (0 < 3kWp) 0.49 €/kWh (3 < 20 kWp) 0.46 €/kWh (20 < ) 0.44 €/kWh 20
Luxenbourg (0 < 30kWp) 0.41 €/kWh (30 < 1000 kWp) 0.36 €/kWh 15
Netherlands (0.6 < 3kWp) 0.33 €/kWh 15
Portugal 0.55 €/kWh 0.40 €/kWh 5 max 50 MW buildings. 150 ground
Slovenia 0.39 €/kWh 0.39 €/kWh 0.39 €/kWh 10 fixed
Spain 0.33 €/kWh 0.33 €/kWh 0.33 €/kWh 25 fixed

 

 

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