Environmental Engineering Reference
In-Depth Information
5.5.2 Incentive Schemes
Whereas small-scale photovoltaic island systems are already competitive today, the
energy production costs for grid-connected photovoltaic systems are in most cases
still higher than normal market prices. It currently only makes sense to install large
numbers of grid-connected photovoltaic systems if state incentive schemes are avail-
able. In Germany, compensation is regulated through the Renewable Energy Law
(Erneuerbare Energien Gesetz, EEG). Other countries have also adopted the com-
pensation principle. A fi xed price is stipulated for each kilowatt hour a photovoltaic
system feeds into the public electricity grid. The relevant electricity company pays
this fee but is allowed to split any associated additional costs among all its electricity
customers. The law is aimed at making solar power competitive. The law therefore
provides an annual degression for systems in buildings. The compensation for new
systems thus drops each year (Table 5.5). The increased compensation is guaranteed
for 20 years after a system has been installed. After this, the fee drops to normal
market prices.
Table 5.5
Compensation in Germany for grid-connected photovoltaic systems in cents/kWh
based on the Renewable Energy Law.
Commissioning 2005 2006 2007 2008 2009 2010
a
2011
a
2012
a
Building systems 54.53 51.80 49.21 46.75 43.01 39.57 36.01 32.77
As of 30 kW 51.87 49.28 46.82 44.48 40.91 37.64 34.25 31.17
As of 100 kW 51.30 48.74 46.30 43.99 39.58 35.62 32.42 29.50
As of 1000 kW 51.30 48.74 46.30 43.99 33.00 29.70 27.03 24.59
Façade bonus 5.00 5.00 5.00 5.00 0.00 0.00 0.00 0.00
Open space systems 43.42 40.60 37.96 35.49 31.94 28.75 26.16 23.81
a
Compensation rates for 2010 to 2012 can vary slightly depending on total installed power for the previous year.
The EEG law has succeeded in triggering a photovoltaic boom in Germany since
2004. Other countries, including Spain, have adopted the same type of law. There
are countries that use other incentive models, such as prescribed quotas for renew-
able energies. However, compared to the German EEG, these models have not
proven to be very successful.
If, as predicted, the costs go down, photovoltaics at certain locations could become
economically competitive in less than ten years without an increase in compensa-
tion. Many countries that have high solar radiation levels experience a large increase
in electricity demand because of air-conditioning systems used in the summer. Due
to the associated high electricity costs in summer, photovoltaics can become
economically viable even earlier in these countries. In many countries the high
initial investment required to install photovoltaic systems is made easier because
low-interest loans or grants are available. However, the conditions and programmes
for these are often subject to change.
