Posts Tagged subsidized renewable energy

Subsidized grid connected photovoltaics tariffs in Europe

The Feed-in Tariff (FIT) is an incentive made to recompense the production of renewable energy both by households and investors. Power companies are supposed to purchase back, at rates higher than the market, power produced from renewable sources; such as wind, thermal solar, PV solar, biomass, hydro and geothermal. This tariff is also called Feed-in Law, Solar Premium, Renewable Tariff or Renewable Energy Payments. FIT helps make the production of renewable energy economically viable. Usually governments secure the tariff for up to 15, 20 or even 25 years from the date of the setup.

The advance of sources of renewable energy is deemed critical to avoiding climate change. The cost of producing renewable energy is still higher than the cost of producing energy from petrol and carbon. FIT tries to counterbalance this difference, thus making more attractive renewable energy installations, asking the utility company to repurchase and reuse the power made by renewable installations. The difference in cost is spread over all of the customers of the power grid. FIT requires net metering regulation to account for electricity purchased from the grid and energy sold to the grid.

FIT is seen as more effective than quotas enforced on power companies, because it satisfies the morality of people. What follows is a simplified summary 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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