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INCENTIVES FOR SOLAR PHOTOVOLTAICS

The Kyoto Protocol was negotiated in 1997 in Japan and became operative in 2005 after the ratification of Russia. Such protocol sanctions the reduction of cumulative greenhouse gas emissions of joining countries by 5.2% below 1990 levels to be achieved by 2012. As a response to the protocol, Italy, together with other European countries, have created special legislation. In Italy the D.M. 19/02/2007, also known as "Nuovo Conto Energia", grants an incentive for the energy produced for a period of 20 years. The legislation, which considerably simplifies the bureaucracy, became operative after the publication of the AEGG regulations and grants incentives on the total energy produced, not only on the energy which is immediately consumed. The energy can be immediately consumed, with considerable savings on the electricity bill, or it can be sold to the local grid operator, which will grant an incentive based on the aforementioned AEEG regulations. Each PUNTO SOLARE works closely with the client to recommend the system that better meets the client's needs. In most cases, through collaborations with financial partners of ASTRA ENERGIA, the plant is realized at zero cost for the client.

The main resolutions of AEEG for the “Nuovo Conto Energia” are:

  • N.88/07, which regulates the measurement of electricity produced by the photovoltaic plants;
  • N.89/07, defining the technical and economic conditions for the connection to the grid;
  • N.90/07, outlining the conditions and modalities for receiving the incentive fees.

The most significant innovations introduced by the "Nuovo Conto Energia" are:

  • Abolition of the preliminary inquiry to access the incentive fees. Request of the incentives is should be sent to GSE only after the photovoltaic system comes online;
  • Abolition of the annual limit of incentivized power, replaced by a maximum aggregate power of 1,200 MWp;
  • Diversification of tariffs taking into account the nature of the installation, architectural integration, etc.;
  • Introduction of premiums for photovoltaic systems with efficient use of energy.

Production incentives

The table below shows the nominal incentive fees for plants coming online before December 31, 2008. For plants coming online during the period between January 1, 2009 and December 31, 2010, the tariffs are reduced by 2% per calendar year after 2008 (with rounding to the third decimal place).

Size of power Not integrated (€/kWh) Partly integrated (€/kWh) Integrated (€/kWh)
1 kW ≤ P ≤ 3 kW 0.40 0.44 0.49
3 kW < P ≤ 20 kW 0.38 0.42 0.46
P > 20 kW 0.36 0.40 0.44

Incentive fees are increased by 5% (with rounding to the third decimal place) in the following (exclusive) cases:

  • a system 3kWp or larger, architecturally integrated, whose end-user is using at least 70% of the energy produced (self producers as of Art. 2, Paragraph 2 of Legislative Decree no. 79/99, amended and supplemented);
  • photovoltaic systems for public schools or public health facilities;
  • photovoltaic roofing systems in substitution of asbestos, integrated in external building shells and facilities for agricultural purposes;
  • photovoltaic systems for municipalities with populations smaller than 5,000 inhabitants according to the last ISTAT census.

It is important to note that DM 19/02/2007 has ordered that all plants are approved the incentive on all the energy produced, and not only the one consumed.

Resale of electricity

The energy produced can be directly consumed (resulting in savings on electricity bill) or sold to the local grid operator, which will pay a feed-in tariff based on AEEG deliberations.

For photovoltaic systems with power rating greater than 20 kWp deliberation 34/05 is applied:

  • For annual productions up to 500,000 kWh the tariff is 0.098 €/kWh;
  • For annual productions from 500,000 to 1,000,000 kWh the tariff is 0.080 €/kWh;
  • For annual productions from 1,000,000 to 2,000,000 kWh the tariff is 0.070 €/kWh;
  • For annual productions larger than 2,000,000 kWh the tariff is AU price.

The feed-in tariff changes also as a function of time when the energy is sold and the region in which the plant resides, and it is maintained even after the incentive period of 20 years.

Maximum incentivized power

The maximum cumulative incentivized power is set in 1200 GWp. The plants that come into operation within fourteen months from the date when the limit was reached, are entitled to the incentive fees. The maximum cumulative power installed by 2016 should be incremented to 3000GWp with a new set of regulations.

Request of incentives

The resolution 90/07 of 13/04/2007 describes documentation, procedures and typical times for requesting the incentive fees to the Manager of Electric Services (GSE).

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