Feed-in tariffs (FITs) in Europe

On March 7, 2014, the Greek government introduced a raft of measures that significantly reduced incentives for solar power producers retroactively. As a consequence, after the end of the current power purchase agreements (PPAs) all solar PV plants that had been operating for less than 12 years as of January 2014 will be given two options: to sell the generated power to the energy market at whatever price they can get; or to sell the energy they produce to the grid at a set price of €80/MWh (US$110). To make up for the lower FITs, YPEKA has allowed renewable power producers to extend their PPA with Greek electricity market operator LAGIE by five years.

The new measures also mandate that solar photovoltaic energy producers must contribute 35% of their 2013 income to electricity market operator LAGIE, in order to plug a €700 million gap in LAGIE’s fund. However, rooftop solar PV installations are exempt from this measure.

Source:pv magazine article on Greek FIT

Greek FIT table (Rooftop)

Greek FIT table

Hungary

Source:E.ON Individuals

E.ON Individuals Price

E.ON Business

Hungarian FIT table

Ireland

The Small and Micro-Scale Generation Pilot Field Trials quota has been met and the call for proposals is closed.

Italy

As of July 5, 2013, Italy ceased offering FIT payments because its €6.7 billion cap was reached 30 days prior on June 6. The FIT immediately prior to cancellation is shown below.

The Italian feed-in tariff scheme degresses every six months. It last degressed on February 27, 2013 and is next set to degress on August 27, 2013.

Standard feed-in tariff

Standard self-consumption tariff

PV plants using innovative technology feed-in tariff

PV plants using innovative technology self-consumption tariff

Concentrating PV plants feed-in tariff

Concentrating PV plants self-consumption tariff

* For PV plants with a nominal power over 1MWp, the GSE does not purchase the electricity produced but pays a feed-in premium that is determined as the difference between the feed-in tariff above and the applicable average electricity market price.

The feed-in premiums in the table are further increased by the following increments:

• €0.02/kWh for plants using modules and inverters that were produced in the European Union or European Economic Area if they enter into operation on or before 31 December 2013; €0.01/kWh if they enter into operation on or before 31 December 2014; and €0.005/kWh if they enter into operation after 31 December 2014.
• €0.03/kWh for plants up to 20 kW nominal power installed on rooftops with simultaneous complete removal of asbestos and €0.02/kWh for plants above 20 kW nominal power if they enter into operation on or before 31 December 2013; €0.02/kWh up to 20 kW nominal power and €0.01/kWh above 20 kW nominal power if they enter into operation on or before 31 December 2014; and €0.01/kWh up to 20 kW nominal power and €0.005/kWh above 20 kW nominal power if they enter into operation after 31 December 2014.

Source:McDermott Will & Emery Legal Analysis of Italian FIT

Latvia

Source:Latvian Government FIT law

Lithuania

Sources:RES Legal on Lithuanian FIT

Luxembourg

Source:RES Legal on Luxembourg FIT

Macedonia

Source:Energy Agency of the Republic of Macedonia

Malta

Sources:Malta Resources Authority

Malta Justice Services

Montenegro

The Montenegro FIT is only available for rooftop or building-integrated photovoltaic installations.

Source:OIE on Montenegro FIT

Netherlands

The Energy Investment Allowance (EIA) still allows entrepreneurs to deduct 44% of the investment costs for PV equipment (purchase and/or production costs) from their company's fiscal profit, over the calendar year in which the equipment was purchased (up to a maximum of €113 million).

Sources:Dutch FIT table (See under “Procedure” for the dates of each phase.)

Portugal

Sources:RES Legal

International Energy Agency

Romania

Romania has a Green Certificates scheme, with the certificates selling for between 108€ and 220€ for each MW produced from solar sources for the next 6 years. Currently, the renewable energy sector is overwhelmingly made up of hydropower, with wind struggling to get a foothold.

Source:pv magazine article on Romanian Green Certificates

Serbia

Source:RES-Legal

Slovakia

Slovakia had FITs for larger installations, but as of April 1, 2011, an amendment to Act No. 309/2009 abolished the state aid scheme for PV systems with a capacity of more than 100kW which are not on the roof or exterior walls of a building. Thus, the FIT is only applicable to rooftop or BIPV installations under 100 kW in capacity.

Sources:RES Legal Slovakian FIT analysis

Slovenia

These payments degress by 2% per month. If a building-mounted installation under 5 kW is connected behind a user's meter, the system receives a 5% greater tariff payment.

Sources:RES Legal on Slovenian FIT

Spain

The new Spanish government, under Prime Minister Mariano Rajoy, has suspended all incentives for photovoltaic systems in response to the current financial situation. They have not made clear when, if ever, any incentives will be reinstated. They did make clear that this will not retroactively affect installations which previously secured feed-in tariffs. In place of the FIT, there is legislation in place that allows small generators of up to 100 kW to connect to the grid and receive the market price for any electricity they feed in. Prior to suspension, the planned tariffs were as follows:

The Spanish tariff is also limited in how many hours per year it will be paid under Royal Decreto (RD) 14/2010. Until 31 December 2013, the number will be fixed across the country, but from 2014, the country will be divided into five climactic zones (shown in image below) with corresponding limits as follows:

Sources:Spanish Royal Decreto 14/2010

pv magazine article on Spanish FIT suspension

Suelo Solar information on Spanish FIT

Sweden

Sweden offers a direct capital subsidy for the installation of grid-connected PV systems, which covers 35% of the installation cost. This is available to systems with a cost below SEK 37,000/kWp (excluding value-added tax). For solar power and heating hybrid systems, this maximum is SEK 90,000/kWp (excluding value-added tax). If the system costs more than SEK 1.2 million, then only the part of the system below this value is subsidized.

Sweden also has a green electricity certificate system and shares a joint certificate market with Norway. In 2013 the average price of a certificate was SEK 197/MWh. Currently only about one eighth of all PV-generated electricity receives green electricity certificates, because only surplus exported electricity receives certificates.

Sources:IEA-PVPS

Switzerland

Source:Swiss Solar 2013 FITs

Ukraine

To prevent exchange risk, the Ukrainian FIT provides a minimum tariff (i.e. a safety net) based on the exchange rate of the Ukrainian Hryvna to the Euro on 1st January, 2009. As of January 1, 2012, the Green Tariff Law will also require that 30% of the value of the materials, works and services used in construction must come from Ukraine. As of January 1, 2014, this increases to 50%.

Sources:Ukrainian FITs law

International Energy Agency on Ukrainian FITs

United Kingdom

In addition to the feed-in tariff, any excess electricity exported into the grid receives an export tariff. This is index-linked to the retail price index and was £0.0477/kWh as of April 1, 2014.

Sources:OFGEM FIT information

Information about UK FIT