PV targets & policies in European countries

Juan Ceballos

The targets and the different market PV policies of few European countries.
Juan Ceballos Cerrajera
EN0549 Photovoltaics-Economics, Policy and Environment
(Date: April, 2010)
I. Introduction
We are going to discuss the different policies that the main European countries have set
for the implementation of the renewable energies, especially the photovoltaic power.
Their different targets will be presented and also their policies to achieve them. After, a
simple evaluation will be made in order to compare the different supporting measures.
II. European Targets
The EU as a group has set different targets for the global union and for each one of the
members. In order to avoid the climate change by investing in renewable energies,
which also means the creation of new jobs, the reduction of the European independence
of energy from out seas (it is expected to be about 80% by 2020 if nothing is done [1]),
especially oil and gas supply, and the creation a leader market within the REs
(Renewable Energies) field.
However the EUs Directive 2003/54/EC that pretend to open the energy market in the
whole EU, there are still many physical, administrative and commercial barriers which
make that complicated.
The renewable Directive 2001/77/EC was created and also the Directive 2003/30/EC for
the use of renewable fuels in transport. They set few targets to achieve by 2010, the
present year. Within this regulatory framework:
21% of the electricity consumed in the EU by 2010 shall have been
produced from renewable energy sources [2]. See annexe I for more
details.
Also a 12% of the total energy consumption has to come from
renewable sources [3].
A 5.75% of the fuel consumption has to come from renewable sources
[4].
A reduction of the CO2 emissions by 402 million ton each year for
2010[3].
Reduction of the fuel importations by a 17.4%.
However those objectives proposed were not signed by a binding kind-of contract,
hence each country assumed its responsibility to reach the objectives but no penalties
were previewed in case that was not the case. That is probably why those targets have
not been achieved so far but most probably they will not be. It is expected that this year
we will reach a 19% of green electricity since many countries are behind the schedule
[5].
Also the EU has set few targets for 2020 approved in December 2008 and confirmed in
the Directive 2009/28/EC, those are, briefly [6, 7]:

PV targets & policies in European countries

-

Juan Ceballos

Cutting the green house gases (GHGs) by, at least 20% of 1990 levels.
The increase of renewable energies (wind, solar, biomass, etc) to 20% of the
total energy consumption. Currently we are about 8.5%. See annexe II for
more details.
At least 10% of the fuel consumption has to come from renewable sources.
Cutting energy consumption by 20% of 2020 projected levels, by improving
energy efficiency.

Personal targets for each country have been set, depending on their current situation.
To reach the global objective, it has been calculated that a 30-35% of the electricity has
to come from renewable energies, where a 5% will come from PV power as state
Giovanni Federigo De Santi, director at the Institute for Energy (IE), JRC European
Commission, [8].
The value of 5% for PV differs from other sources such as Pierre Dechamps, Adviser
for Energy and Climate Change at the Bureau of European Policy Advisers, who stated
that value around 2-3% [8]. Notice that at the moment, PV power only represents a
0.4% hence a really big growth is needed.
The way how to achieve those objectives is a free choice for each country but they are
obliged to do it since they have signed those binding national targets that they have to
achieve. However, no one can say what will be the consequences for those countries
that will not reach the targets.
The European countries have until June 2010 to present their individual action plans.
The planning targets for the EU are represented in the next figure:

Source: [5]
For PV power, even if it seems that it will not contribute so much that yellow thin line
implies thousand MWh per year and also a big development of this technology from
now.

PV targets & policies in European countries

Juan Ceballos

And also the avoided CO2 emissions expected until 2020:

Source: [5]
III. Supporting Schemes
There different market support mechanisms, they can be based in a certain amount of
renewable energy that has to be produced (quantity-based mechanism) or a certain price
that has to be paid for MWh of renewable energy (price-based mechanism), both can
work theoretically [10].
Usually the countries choose more than one mechanism to stimulate the REs market
since there are many different technologies.
Quantity-based mechanism
Quota obligations: the Government states a certain amount of renewable energy for the
producers, suppliers or consumers, that has to be used, probably in terms of percentage
of the total energy consumed. This mechanism is usually applied along with Tradable
Green Certificates (TGCs) which prove that some amount of energy has been produced
from renewable sources. Hence people can trade with those to prove to the government
that they have produced enough green energy or if not, pay a stated economic penalty
[10].
Tendering: a tender is published for the provision of a fixed amount of energy from a
specific technology source, and then the bidding will make sure that the best offer is
accepted, the cheapest one [10].
Price-based mechanism
Feed-in Tariff (FIT): this means the price per unit of energy (kWh) that the utility or the
supplier has to be pay for renewable energy from private generators. That tariff is
regulated by the government [2]. It is presented along with a feed-in law to oblige the
utility to purchase that energy. This technique is a very common used one in the EU.

PV targets & policies in European countries

Juan Ceballos

Fixed premiums or environmental bonus: it is the same as the FIT but here a premium
has to be paid for renewable energy on top of the market price. The main difference is
that, with this technique producers are encouraged to compete in the electric market
[10].
Fiscal incentives: allow by the Directive 2003/96/EC, as tax exemptions or reductions
are also used in the EU, usually they are not enough to work as the main mechanism
and other measures are required. However in countries where the energy taxes are quite
high this measure could be enough to stimulate this market.
IV. Countries
In the next section we are going to explain briefly the different policies that each
country has adopted and the measures they have taken for PV power.
To have an overall view, in the next figure we can see the policies adopted for each
European country:
Country
Austria
Belgium
Cyprus
Denmark
Finland
France
Germany
Greece
Ireland
Italy
Luxembourg
Malta
Netherlands
Portugal
Spain
Sweden
UK

FITs TGCs

Capital
Tax
Net
Subsides credit metering

Source: [7].

Net metering consist in that the producer of renewable energy consumes his own energy
but in the case too much or too few energy is produced, that can be given or taken to or
from the net, at the end the consumer only pays the net energy taken from the grid. With
this method the energy is always used even if it is produced when is not consumed [11].
The next graph show us the average costs and the supporting level for each European
country for PV:

PV targets & policies in European countries

Juan Ceballos

Source: OPTRES, 2007 [10].

As we can deduce from the graph there are only few countries that have a strong enough
policy to stimulate the PV power, those are: Czech Republic, Germany, Spain, France,
Greece, Italy and Portugal. The PV market development is only possible if a political
support is given through national laws, since the cost of PV is still very expensive (3-7
/Wp for grid connected systems [7]).
IV.I France:
The French target is to achieve a 23% from REs by 2020, with PV being a 1% which
would mean about 5.4GW.
The principal supporting mechanism in France for PV is FITs, distinguishing between
NIPV (non integrated PV) and BIPV which received a bonus. That is the reason why
BIPV is more developed across the country. We can see the value in the next table [7]:
Granting period
20 years
Roof top and ground-mounted
0.32823 c/kWh
BIPV
0.60176 c/kWh
Industrial/commercial buildings
0.45 c/kWh
* These prices are for 2009 and for continental France only.
The previous values are being revised each year depending on the inflation. The French
government also supports other additional measures like tax incentives and in credit
terms.
IV.II Germany:
The German target is 18% from REs by 2020, Karin Freier, Head of Division of the
German Federal Ministry for the Environment said that PV could mean a 2.5% of the
electricity consumption with 23GW installed [8].
In terms of PV, Germany is the leading country due to a very good structured PV
support mechanism, both administratively and economically, developed since 1991. In
fact, Germany installed more PV in 2009 than the rest of the top 10 national markets
combined [12].

PV targets & policies in European countries

Juan Ceballos

The German program is based in a FITs mechanism, with different values depending on
the type of PV and its size. The values are reduced or boosted each year following a
digression rate which is also adapted to the market growth (varying 1% depending
on the number of MWp installed) and the support mechanism is valid for 20 years.
In the next table we can see the values for the next year [7]:
FIT Rooftop

30kW

201
0
201
1

Groundmounted
>30 kW

>100kW

>1000kW

All sizes

Digression
Rate (%)

/kWh

Digression
Rate (%)

/kWh

Digression
Rate (%)

/kWh

Digression
Rate (%)

/kWh

Digression
Rate (%)

/kWh

0.395
7

0.376
4

10

0.356
2

10

0.297
0

10

0.2875

0.360
1

0.342
5

0.324
2

0.270
3

0.2616

There are also another support measures such as credit terms and tax incentives, plus
commercial systems are exempted of VAT (19%).
IV. III Greece:
This country counts with a high irradiation and with a good support PV program
recently readjusted in January 2009 with a new FIT policy. FITs are being annually
adjusted for the inflation after August 2010 and they are guaranteed for a 20 years
period. The law was restructured on 2007 and it also includes subsides or tax deduction.
Probably the reason why PV has not been really installed in Greece is because their too
hard administrative and regulative procedures. The Greek target for 2020 in terms of PV
is to reach 700MWp, 500MWp in land and 200MWp in the islands.
The next table shows the values for the Greek PV policy [7]:
Year

Month

Mainland grid (/kWh)

Autonomous grid (/kWh)
>100 kWp
100
kWp
>100 kWp

100 kWp

0.4
2010
February
0.392
2010
August
0.372
2011
February
0.351
2011
August
0.333
2012
February
0.314
2012
August
0.298
2013
February
0.281
2013
August
(n-1)
1.3*SMC
Year n
*SMC= System Marginal cost.

0.45
0.441
0.419
0.394
0.375
0.353
0.336
0.316
1.3*SMC(n-1)

0.45
0.441
0.419
0.394
0.375
0.353
0.336
0.316
1.3*SMC(n-1)

0.5
0.490
0.466
0.438
0.417
0.392
0.373
0.351
1.3*SMC(n-1)

There is also another program running since June 2009 supporting roof mounted PV
systems up to 10kW. A FIT of 0.55/kWh is granted for 25 years and annually adjusted
with the inflation.
6

PV targets & policies in European countries

Juan Ceballos

IV.IV Italy:
For Italy, FITs are also the main support scheme for PV systems while for other kinds
of renewable energy are also supported through TGCs.
In the next table we can see the FIT values for Italy for 2010 and 2011 from the decree
stated in 2007. These are values are decrease a 2% each year and there are differences
depending on the type of PV, FIPV (Field Installed PV), PIPV (Partially Integrated PV)
and BIPV (Building Integrated PV) [7]:
Rated
Power
(kWp)
Years
1-3
3-20
>20

FIT (/kWh) FIPV

2010
2011

FIT (/kWh) PIPV

2010
2011

FIT (/kWh) BIPV

2010
2011

0.384
0.364
0.346

0.422
0.404
0.384

0.470
0.442
0.422

0.376
0.357
0.339

0.414
0.396
0.376

0.461
0.433
0.414

There are, as usual, also supporting measures as reduction of VAT or reduction of

property taxes.
IV. V Portugal:
PV is supported mainly through FITs policy and also with other measures like
subsidies, reduced VAT or tax credits.
The main law that governs this was introduced in April 2008 (Law Decree 363/2007)
and includes a FIT system which revised each year depending on the success of the
program. The program also includes a new easier way to get license for PV plants and
connecting to the grid, reducing the time to get these plants to produce [13].
The FIT principal values are [13]:
General Regime (any kind of microgeneration)
PV <5.75kW, 25A
Net metering

Special Regime (only for REs)

PV <3.68kW, 16A

61.75c/kWh

These values for the special regime are the same for the first 5 years and after are
revised depending how many MW will be installed in the country, exactly for each
10MW installed the values are reduced in a 5%. Notice that with this program only
scale PV plants are supported and that all the electricity produced must be sold to the
grid.
IV. VI Spain:
Spain had a too favourable FITs program governed by the Royal Decree 436/2004 that
made that much more MWs were produced than expected. The Decree gave the
possibility to the producers whether to receive a fixed price for their electricity sold or
to receive a premium over the market price.

PV targets & policies in European countries

Juan Ceballos

That made that the Spanish government had to change the rules with a new Decrees,
first RD 661/2007 and then 1578/2008, which reduced the FIT for the PV plants, plants
that are usually quite big around 10-30 MW and that also stated a quota of maximum of
MW that can be installed per year.
In the next table, we can see the current values, which are rectified every year according
to the success of previous quarters [7,14].
FIT

Type I Roof

< 20kW

Power
plant
limit size

Tariff
2010, 2

Tariff
2010, 3

CAP
2010

CAP
2011

2MW

0,334652
/kWh
0,303099
/kWh

0,330597
/kWh
0,295200
/kWh

30MW

33MW

265MW

292MW

295MW

325MW

207MW

162MW

500MW

488MW

> 20kW
Type I- Total CAP
Type II- Ground
mounted

10MW

0,2731780
/kWh

0,2655090
/kWh

Total CAP

Also tax incentives are available.

IV. VII United Kingdom:
The main program for UK to promote the REs started in 2002 and stated a percentage
that electricity suppliers have to provide from REs, rising until 15.4% in 2015-2016 [7].
The providers can prove that through:
- Having the correct amount of ROCs (renewable obligation certificates).
- Paying a certain amount for not having electricity from REs.
- Both.
The last program has been launched in 2010, from the 1st April this year a new FITs
governs the market of all the REs. By paying a certain amount for each kWh the British
government pretends to promote REs and to fulfil the European targets for 2020.
The FIT values are kept constant for 25 years, after that the values are decreased in
8.5%, doing that the government pretends to encourage people to invert now in REs and
do not wait any longer.
We can see the values in the next table [15, 16]:
PV plant size
4kW (new

building)
4kW (reformatted

FIT values for new installations (p/kWh)

1st year (1/4/102nd year (1/4/1131/3/11)
31/3/12)

3rd year (1/4/1231/3/13)

36.1

36.1

33.0

41.3

41.3

37.8

PV targets & policies in European countries

building)
4-10 kW
10-100 kW
100kW-5MW
Autonomous

36.1
31.4
29.3
29.3

Juan Ceballos

36.1
31.4
29.3
29.3

33.0
28.7
26.8
26.8

The FIT values are paid for each kWh even if the energy is used for ones own
consumption. If an excess in energy is generated, that can be sold to the grid and an
extra 3p/kWh will be paid.
V. Economic Study
We can do a quickly economic study with an example of a typical PV plant, under the
different policies of the countries mentioned above, similar to those made in [7] and
[11].
The plant would have 10kWp.
The production in each country is supposed to be, taken from RetScreen database:
Country
France
Germany
Greece
Italy
Portugal
Spain
United Kingdom

Energy produced per power

(kWh/kWp)
1115
911
1435
1290
1386
1387
862

Total energy produced

(kWh)
11150
9110
14350
12900
13860
13870
8620

The costs are represented with the formula [7,11]:

C t = F E + c kWh ,t Et u C o C add

Where:
-

F is the FIT value.

c kWh ,t (/kWh) is the electricity price in the t year.
u is a coefficient to take into account the necessary maintenance.
Co () is the initial cost.
Cadd () is the yearly insurance cost.

And we are going to study the values of the net present value (NPV), internal rate of
return (IRR) and the pay back period (PBP):
Ct
C o , where i is the weighted average cost of capital
t
t =1 (1 + i )
(WACC) and is taken equal to 3%.
N
Ct
= 0 , the value of i will be the IRR.
- Co
t
t =1 (1 + i )
N

- NPV =

PV targets & policies in European countries

Juan Ceballos

Other assumptions made are:

-

The WACC is 3%.

The initial cost for each country is the same: 60,000.
It is considered that all the electricity produced is sold to the Grid.
The annual cost for maintenance and insurance is the 0.75% of the total cost.
It is supposed that each year the energy production decreases in 0.8%.
The best FIT (or net metering) values are taken for each country. Other
supporting measures are not taken into account.
The efficiency of the PV plant is considered to be 80%.
The electricity costs are increased each year by 3%, they are in the year 0th
[7]:
European country
France
Germany
Greece
Italy
Portugal
Spain
United Kingdom

ckWh

(c)
12.32
21.95
10.99
21.95
15.25
15.57
16.03
,0

VI. Conclusions
The values of the economic study can be seen in the annexe III. The main values are
represented in the next table:
Country
France
Germany
Greece
Italy
Portugal
Spain
UK

NPV
6,901.30
-14,109.68
7,778.92
37,926.83
-30,670.53
12,732.01
2,227.74

IRR
4%
0%
5%
9%
5%
3%

PBP (years)
14
20
11
9
Never
12
15

These values are just useful to make a comparison between the countries, since not
every supporting measure has been taken into account.

10

PV targets & policies in European countries

Juan Ceballos

80,000.00

Acumulative cash-flow

60,000.00
40,000.00

UK
Spain
Italy

20,000.00
-

-20,000.00

10

15

20

Greece
Germany

25

France
Portugal

-40,000.00
-60,000.00
-80,000.00
Years

As we can see from the graph, under the conditions assumed, the best country to install
PV plants are (in this order): Italy, Greece, Spain, France, UK, Germany and Portugal.
Germany had 85% of the total PV in Europe in 2005 where the total power was 10MW,
the German program is the most successful one and very effective, that creates the
development of this sector in the country with a lot of research and new jobs. Following
the previous graph Germany would be one of the worst countries, this can only be
explained knowing that not every supporting measure has been taken into account.
In general for a good supporting PV system, it is necessary a coherent strategy for the
long term that FIT systems should be granted for few years so inversions can be done
without some many risks. It is obvious that the economic support is necessary and
without it the sector will not be developed. Also the statement of real targets has to be
done.
Apart from all of that it is also essential that simpler administrative procedures are set,
with less technical requirements for the small PV plants.
Those are the reasons why, following the previous graph, the first countries where a
good supporting scheme is supposed to exist, it really does not work so well. Countries
like Greece or Italy, with a high radiation levels, do not have so many installed MW like
Germany or Spain who are leading the European countries.
About the other countries, UK has just recently implanted a new FIT system which is
expected to make the PV market grown but it is still to see; about Portugal their PV
supporting systems only benefits to smaller power plants than what we have considered
that is why its economic results are not so good.
About the policies that the countries have chosen, FIT is the main one because it is
support scheme which has achieved the best results and that is why, most of the
countries have adopted this measure. Also all the countries have adopted more extra
measures to complement the precious one.

11

PV targets & policies in European countries

Juan Ceballos

Annexe I
The targets of the different European countries for 2010 in terms of percentage of
renewable electricity are [17]:
Belgium
Denmark
Germany
Greece
Spain
France
Ireland
Italy
Luxembourg
Netherlands
Austria
Portugal
Finland
Sweden
United Kingdom
Community

REs-E (TWh) 1997

0.86
3.21
24.91
3.94
37.15
66.00
0.84
46.46
0.14
3.45
39.05
14.3
19.03
72.03
7.04
338.41

REs-E (%) 1997

1.1
8.7
4.5
8.62
19.9
15.0
3.6
16.0
2.1
3.5
70.0
38.5
24.7
49.1
1.7
13.9

REs-E (%) 2010

6.0
29.0
12.5
20.1
29.4
21.0
13.2
25.0
5.7
9.0
78.1
39.0
31.5
60.0
10.0
22

Notice that here are only represented the EU-15 countries, for the EU-27 the target the
percentage is a little less, 21%. [Source: Official Journal of the European Communities
L283/39. 27/10/01].

12

PV targets & policies in European countries

Juan Ceballos

Annexe II
The targets of the different European countries for 2020 in terms of percentage of
renewable energy are [18,19]:
% of energy from
renewable sources
in 2005.
Belgium
2.2
Bulgaria
9.4
Czech Republic
6.1
Denmark
17
Germany
5.8
Estonia
18
Ireland
3.1
Greece
6.9
Spain
8.7
France
10.3
Italy
5.2
Cyprus
2.9
Latvia
32.6
Lithuania
15
Luxembourg
0.9
Hungary
4.3
Malta
0.0
Netherlands
2.4
Austria
23.3
Poland
7.2
Portugal
7.2
Romania
17.8
Slovenia
16
Slovak Republic
6.7
Finland
28.5
Sweden
39.8
United Kingdom
1.3
* ETS= Emission Trading System.

Reduction target in
sectors not
covered by the EU
ETS* compared to
2005 (%).
-15
20
9
-20
-14
11
-20
-4
-10
-14
-13
-5
17
15
-20
10
5
-16
-16
14
1.0
19
4
13
-16
-17
-16

%-target of energy
from renewable
sources in 2020.
13
16
13
30
18
25
16
18
20
23
17
13
40
23
11
13
10
14
34
15
31
24
25
14
38
49
15

[Source: Official Journal of the EU L140/46. 5/6/09].

[Source: Directive 2009/28/EC].
This data are taken from the Directive 2009/28/EC, on the promotion of the use of
energy from renewable sources and amending and subsequently repealing Directives
2001/77/EC and 2003/30/EC.

13

PV targets & policies in European countries

Juan Ceballos

Annexe III
The results of the economic study are presented below:
France
Size of the plant(kWp)
WACC
Cost of the plant

10
3%
60,000.00

ckWh,0
Year
Energy
produced
(kWh)

Income ()
M&I Cost ()
Electricity price
(/kWh)

Acumulated
Cash-flow ()

0.80%
11150
0.75%

0.1232

FIT (c/kWh)

Total balance
Ct ()

Production decrease
Energy produced (kWh) in 0th
M&I Cost (0th)

10

11

12

13

14

15

16

17

18

19

20

11060 10972
11150
.8
.314
0.3
0.32
0.32
282
82
82
3,659.7 3,630. 3,601.
6
49
44
477.4
450.0
463.5
05
0.1 0.126 0.130
232
896
7029

10884.
53509
0.3
282
3,572.6
3
491.72
715
0.1346
23966

10797 10711 10625 10540

.459
.079
.391
.387
0.32
0.32
0.32
0.32
82
82
82
82
3,544. 3,515. 3,487. 3,459.
05
70
57
67
506.4 521.6 537.3 553.4
7896
7333
2353
4324
0.138 0.142 0.147 0.151
6627
8226
1072
5205

1045
6.06
0.32
82
3,431
.99
570.0
465
0.156
066

10372 10289 10207

.416
.436
.121
0.32
0.32
0.32
82
82
82
3,404. 3,377. 3,350.
54
30
28
587.1 604.7 622.9
4793
6237
0524
0.160 0.165 0.170
7481
5705
5376

1012
5.46
0.32
82
3,323
.48
641.5
924
0.175
654

10044 9964.
.46
1046
0.32
0.32
82
82
3,296. 3,270.
89
52
660.8 680.6
4017
6538
0.180 0.186
9234
3511

9884.
392
0.32
82
3,244
.35
701.0
853
0.191
942

9805.
317
0.32
82
3,218
.40
722.1
179
0.197
7

9726.
8741
0.32
82
3,192.
65
743.7
8143
0.203
6308

9649.
059
0.32
82
3,167
.11
766.0
949
0.209
74

9571.
8666
0.32
82
3,141.
77
789.0
7772
0.216
0319

4,58
4,57 4,558
3.4
0.6
.2
55416. 50846 46287
6
.0
.8

4,54
6.2
41741.
6

4,534 4,523 4,513 4,503

.8
.8
.3
.3
37206 32683 28169 23666
.8
.0
.7
.4

4,49
3.8
1917
2.6

4,484 4,476
.7
.2
14687 10211
.9
.7

4,46
0.5
1283.
2

4,453
.3

4,446
.7

4,44
0.5

4,43
4.8

4,429
.6

4,42
4.8

4,42
0.5

3170.
1

7616.
8

1205
7.3

1649
2.1

20921
.7

2534
6.5

29767
.0

60,000.
00
60,000.
00

NPV

6,901.30

IRR

4%

PBP

14 years

Germany
Size of the plant(kWp)

10

Production decrease

4,468
.1
5743.
6

0.80%

14

PV targets & policies in European countries

WACC
Cost of the plant

Year

Income ()
M&I Cost ()

Acumulated
Cash-flow ()

9110
0.75%

0.2165

Energy
produced
(kWh)
FIT (c/kWh)

Electricity price
(/kWh)
Total balance
Ct ()

Energy produced (kWh) in 0th

M&I Cost (0th)

3%
60,000.00

ckWh,0

Juan Ceballos

10

11

12

13

14

15

16

17

18

19

20

9110

9037.
12

8964.
823

8893.1
04456

8821.
9596

8751.
3839

8681.
3729

8611.
9219

8543.
027

8474.
6823

8406.
8848

8339.
6298

8272.
913

8206.
7294

8141.
0756

8075.
947

8011.
339

7947.
2487

7883.
671

7820.
6013

0.2
875
2,619.1
3
450.0

0.26
16
2,364.
34
463.5

0.23
81
2,134.
33
477.4
05
0.229
6849
3,716
.0

0.2
167
1,926.7
1
491.72
715
0.2365
75396
3,53
8.9

0.19
72
1,739.
28
506.4
7896
0.243
6727
3,382
.5

0.17
94
1,570.
08
521.6
7333
0.250
9828
3,244
.9

0.16
33
1,417.
34
537.3
2353
0.258
5123
3,124
.3

0.14
86
1,279.
46
553.4
4324
0.266
2677
3,019
.1

0.13
52
1,155
.00
570.0
465
0.274
256
2,92
7.9

0.12
30
1,042.
64
587.1
4793
0.282
4834
2,849
.4

0.11
20
941.2
1
604.7
6237
0.290
9579
2,782
.5

0.10
19
849.6
5
622.9
0524
0.299
6866
2,726
.0

0.09
27
767.0
0
641.5
924
0.308
677
2,67
9.1

0.08
44
692.3
8
660.8
4017
0.317
9375
2,640
.8

0.07
68
625.0
3
680.6
6538
0.327
4757
2,610
.4

0.06
99
564.2
2
701.0
853
0.337
3
2,58
7.2

0.06
36
509.3
4
722.1
179
0.347
419
2,57
0.5

0.05
79
459.7
9
743.7
8143
0.357
8415
2,559
.9

0.05
26
415.0
6
766.0
949
0.368
577
2,55
4.7

0.04
79
374.6
8
789.0
7772
0.379
6341
2,55
4.6

15311 12700 1011

.2
.8
3.7

7543.
2

4983.
3

2428.
6

126.0

0.2 0.222
165
995
4,14
3,91
60,000. 1.4
6.1
00
60,000. 55858. 51942 48226 44687.
00
6
.5
.5
6

NPV

-14,109.68

IRR

0%

PBP

20 years

Greece
Size of the plant(kWp)
WACC
Cost of the plant

10
3%
60,000.00

41305 38060 34936 31916 2898

.1
.3
.0
.9
9.0

Production decrease
Energy produced (kWh) in 0th
M&I Cost (0th)

26139 23357 20631 1795

.6
.1
.0
2.0

0.80%
14350
0.75%

15

PV targets & policies in European countries

ckWh,0
Year

0.1099
0

Energy
produced
(kWh)
FIT (c/kWh)
Income ()
M&I Cost ()
Electricity price
(/kWh)
Total balance
Ct ()
Acumulated
Cash-flow ()

Juan Ceballos

14350

14235 14121 14008.

.2
.318
34785

13896 13785 13674 13565 13456 13349 13242 13136 13031 12927 12823 12721 12619 12518 12418 12318
.281
.111
.83
.431
.91
.253
.459
.519
.43
.175
.758
.17
.4
.443
.3
.949

0.4950
000
7,103.2
5
450.0

0.452
0000
6,434.
31
463.5

0.331
0000
4,599.
67
506.4
7896
0.123
6934
5,812
.1

0.404
5000
5,712.
07
477.4
05
0.116
5929
6,881
.1

0.3620
000
5,071.0
2
491.72
715
0.1200
90697
6,26
1.6

0.1 0.113
099
197
8,23 7,58
60,000. 0.3
2.2
00
60,000. 51769. 44187 37306 31044.
00
7
.5
.4
8

NPV

7,778.92

IRR

5%

PBP

11 years

Italy
Size of the plant(kWp)
WACC
Cost of the plant

10
3%
60,000.00

0.294
5900
4,060.
96
521.6
7333
0.127
4042
5,295
.6

0.262
1851
3,585.
34
537.3
2353
0.131
2263
4,842
.5

0.233
3447
3,165.
42
553.4
4324
0.135
1631
4,445
.5

10

11

12

13

14

15

0.091
8582
1,168.
54
701.0
853
0.171
221
2,645
.6

17

0.081
7538
1,031.
68
722.1
179
0.176
357
2,535
.1

18

0.072
7609
910.8
5
743.7
8143
0.181
648
2,441
.0

19

0.064
7572
804.1
7
766.0
949
0.187
097
2,361
.5

20

0.207
6768
2,794.
69
570.0
465
0.139
218
4,098
.1

0.184
8324
2,467.
37
587.1
4793
0.143
3946
3,794
.4

0.164
5008
2,178.
40
604.7
6237
0.147
6964
3,529
.5

0.146
4057
1,923.
26
622.9
0524
0.152
1273
3,298
.8

0.130
3011
1,698.
01
641.5
924
0.156
691
3,098
.3

0.115
9680
1,499.
14
660.8
4017
0.161
3919
2,924
.6

25232 19937 15094 10649 6551.

.7
.2
.7
.1
1

2756.
6

772.9

4071.
7

7170.
0

10094 12869 15514 18049 20490 22852 25147

.6
.3
.8
.9
.9
.5
.4

Production decrease
Energy produced (kWh) in 0th
M&I Cost (0th)

0.103
2115
1,323.
56
680.6
6538
0.166
2336
2,774
.6

16

0.057
6339
709.9
9
789.0
7772
0.192
7103
2,29
4.9

0.80%
12900
0.75%

16

PV targets & policies in European countries

ckWh,0
Year
Energy
produced
(kWh)

0.2195
0

FIT (c/kWh)
Income ()
M&I Cost ()
Electricity price
(/kWh)
Total balance
Ct ()
Acumulated
Cash-flow ()

10

11

12

13

14

15

16

17

18

19

20

12796 12694
12900
.8
.426
0.3
0.35
0.34
640
70
99
4,695.6 4,568. 4,441.
0
46
27
477.4
450.0
463.5
05
0.2 0.226 0.232
195
085
8676

12592.
8702
0.3
429
4,317.6
3
491.72
715
0.2398
53577

12492 12392 12293 12194

.127
.19
.053
.708
0.33
0.32
0.32
0.31
60
93
27
62
4,197. 4,080. 3,966. 3,856.
42
57
96
52
506.4 521.6 537.3 553.4
7896
7333
2353
4324
0.247 0.254 0.262 0.269
0492
4607
0945
9573

1209
7.15
0.30
99
3,749
.16
570.0
465
0.278
056

12000 11904 11809

.373
.37
.135
0.30
0.29
0.29
37
76
17
3,644. 3,543. 3,444.
78
31
67
587.1 604.7 622.9
4793
6237
0524
0.286 0.294 0.303
3977
9896
8393

1171
4.66
0.28
59
3,348
.77
641.5
924
0.312
955

11620 11527
.945
.978
0.28
0.27
01
45
3,255. 3,164.
54
90
660.8 680.6
4017
6538
0.322 0.332
3432
0134

1143
5.75
0.26
91
3,076
.79
701.0
853
0.341
974

1134
4.27
0.26
37
2,991
.13
722.1
179
0.352
233

11253
.514
0.25
84
2,907.
86
743.7
8143
0.362
8001

1116
3.49
0.25
32
2,826
.91
766.0
949
0.373
684

11074
.178
0.24
82
2,748.
20
789.0
7772
0.384
8946

7,07
6,99 6,920
7.2
8.1
.0
52922. 45924 39004
9
.7
.7

6,84
6.3
32158.
4

6,777 6,712 6,651

.1
.2
.6
25381 18669 12017
.3
.1
.5

6,54
2.8

6,494
.5

6,450
.2

6,409
.8

6,37
3.3

6,340
.6

6,311
.7

6,28
6.4

6,26
4.8

6,246
.9

6,23
2.4

6,22
1.5

1120.
4

7615.
0

14065 20475
.2
.0

2684
8.3

33189 39500
.0
.7

4578
7.1

5205
1.9

58298
.8

6453
1.2

70752
.7

16

17

18

19

20

60,000.
00
60,000.
00

NPV

37,926.83

IRR

9%

PBP

9 years

Portugal
Size of the plant(kWp)
WACC
Cost of the plant

10
3%
60,000.00

ckWh,0
Year

Juan Ceballos

6,595
.1
5422.
3

Production decrease
Energy produced (kWh) in 0th
M&I Cost (0th)

0.80%
13860
0.75%

0.1525
0

10

11

12

13

14

15

17

PV targets & policies in European countries

Energy
produced
(kWh)
FIT (c/kWh)
Income ()
M&I Cost ()
Electricity price
(/kWh)
Total balance
Ct ()
Acumulated
Cash-flow ()

13749 13639
13860
.12
.127
0.6
0.61
0.61
175
75
75
8,558.5 8,490. 8,422.
5
08
16
477.4
450.0
463.5
05
0.1 0.157 0.161
525
075
7873

13530.
01402
0.6
175
8,354.7
8
491.72
715
0.1666
40868

13421 13314 13207 13102

.774
.4
.885
.221
0.61
0.61
0.61
0.61
75
75
75
75
8,287. 8,221. 8,155. 8,090.
95
64
87
62
506.4 521.6 537.3 553.4
7896
7333
2353
4324
0.171 0.176 0.182 0.187
6401
7893
093
5558

1299
7.4
0.61
75
8,025
.90
570.0
465
0.193
182

12893 12790 12687

.424
.277
.955
0.61
0.61
0.61
75
75
75
7,961. 7,898. 7,834.
69
00
81
587.1 604.7 622.9
4793
6237
0524
0.198 0.204 0.211
9779
9472
0957

1258
6.45
0.61
75
7,772
.13
641.5
924
0.217
429

12485 12385
.76
.874
0.61
0.61
75
75
7,709. 7,648.
96
28
660.8 680.6
4017
6538
0.223 0.230
9514
6699

1228
6.79
0.61
75
7,587
.09
701.0
853
0.237
59

1218
8.49
0.61
75
7,526
.39
722.1
179
0.244
718

12090
.984
0.61
75
7,466.
18
743.7
8143
0.252
0593

1199
4.26
0.61
75
7,406
.45
766.0
949
0.259
621

11898
.302
0.61
75
7,347.
20
789.0
7772
0.267
4097

1,66
1,69 1,729
3.7
6.1
.2
58336. 56640 54911
4
.2
.0

1,76
2.9
53148.
0

1,797 1,832 1,867 1,904

.2
.2
.7
.0
51350 49518 47650 45747
.8
.6
.9
.0

1,94
0.8
4380
6.1

1,978 2,016 2,055

.4
.6
.5
41827 39811 37755
.8
.2
.7

2,09
5.1
3566
0.7

2,135 2,176
.4
.4
33525 31348
.3
.9

2,21
8.1
2913
0.8

2,26
0.6
2687
0.2

2,303
.9
24566
.3

2,34
7.9
2221
8.4

2,39
2.6
19825
.8

16

17

18

19

20

1229
5.65

1219
7.29

12099
.708

1200
2.91

11906
.887

60,000.
00
60,000.
00

NPV

-30,670.53

IRR

-3%

PBP

Never

Spain
Size of the plant(kWp)
WACC
Cost of the plant

10
3%
60,000.00

ckWh,0
Year
Energy
produced
(kWh)

Juan Ceballos

Production decrease
Energy produced (kWh) in 0th
M&I Cost (0th)

0.80%
13870
0.75%

0.1557
0

1
13870

13759 13648
.04
.968

4
13539.
77594

13431 13324 13217 13111

.458
.006
.414
.675

9
1300
6.78

10

11

12

12902 12799 12697

.727
.505
.109

13
1259
5.53

14

15

12494 12394
.768
.81

18

PV targets & policies in European countries

FIT (c/kWh)
Income ()
M&I Cost ()
Electricity price
(/kWh)
Total balance
Ct ()
Acumulated
Cash-flow ()

0.2
0.26
0.25
693
26
60
3,735.1 3,612. 3,494.
9
68
18
477.4
450.0
463.5
05
0.1 0.160 0.165
557
371
1821

0.2
496
3,379.5
7
491.72
715
0.1701
37594

0.24
0.23
0.23
0.22
34
73
13
56
3,268. 3,161. 3,057. 2,957.
72
51
81
51
506.4 521.6 537.3 553.4
7896
7333
2353
4324
0.175 0.180 0.185 0.191
2417
499
9139
4914

0.21
99
2,860
.51
570.0
465
0.197
236

0.21
0.20
0.20
44
91
38
2,766. 2,675. 2,588.
68
94
17
587.1 604.7 622.9
4793
6237
0524
0.203 0.209 0.215
1532
2478
5252

0.19
87
2,503
.27
641.5
924
0.221
991

0.19
0.18
38
89
2,421. 2,341.
17
75
660.8 680.6
4017
6538
0.228 0.235
6507
5102

0.18
42
2,264
.94
701.0
853
0.242
576

0.17
96
2,190
.65
722.1
179
0.249
853

0.17
51
2,118.
80
743.7
8143
0.257
3484

0.17
07
2,049
.30
766.0
949
0.265
069

0.16
65
1,982.
09
789.0
7772
0.273
0209

5,44
5,35 5,271
4.8
5.7
.3
54555. 49199 43928
3
.5
.2

5,19
1.5
38736.
7

5,116 5,044 4,977 4,914

.0
.8
.8
.8
33620 28575 23598 18683
.7
.9
.1
.3

4,85
5.9
1382
7.4

4,800
.8
9026.
6

4,701
.8

4,65
7.8

4,617
.3

4,580
.2

4,54
6.5

4,51
6.1

4,488
.9

4,46
4.8

4,44
3.8

424.6

5082.
4

9699.
6

14279
.8

1882
6.3

2334
2.4

27831
.2

3229
6.0

36739
.9

60,000.
00
60,000.
00

NPV

12,732.01

IRR

5%

PBP

12 years

UK
Size of the plant(kWp)
WACC
Cost of the plant

10
3%
60,000.00

ckWh,0
Year
Energy
produced
(kWh)
FIT (c/kWh)

Juan Ceballos

Production decrease
Energy produced (kWh) in 0th
M&I Cost (0th)

4,749
.4
4277.
2

0.80%
8620
0.75%

0.1603
0

10

11

12

13

14

15

16

17

18

19

20

8620
0.4

8551.
04
0.41

8482.
6317
0.37

8414.7
70627
0.3

8347.
4525
0.37

8280.
6728
0.37

8214.
4275
0.37

8148.
712
0.37

8083.
522
0.37

8018.
8542
0.37

7954.
7033
0.37

7891.
0657
0.37

7827.
937
0.37

7765.
3137
0.37

7703.
1912
0.37

7641.
566
0.37

7580.
433
0.37

7519.
7897
0.37

7459.
631
0.37

7399.
9543
0.37

19

PV targets & policies in European countries

Income ()
M&I Cost ()
Electricity price
(/kWh)
Total balance
Ct ()
Acumulated
Cash-flow ()

60,000.
00
60,000.
00

Juan Ceballos

150
50
95
3,577.3 3,548. 3,219.
0
68
16
477.4
450.0
463.5
05
0.1 0.165 0.170
603
109
0623

795
3,193.4
1
491.72
715
0.1751
64138

95
95
95
95
3,167. 3,142. 3,117. 3,092.
86
52
38
44
506.4 521.6 537.3 553.4
7896
7333
2353
4324
0.180 0.185 0.191 0.197
4191
8316
4066
1488

95
3,067
.70
570.0
465
0.203
063

95
95
95
3,043. 3,018. 2,994.
16
81
66
587.1 604.7 622.9
4793
6237
0524
0.209 0.215 0.221
1551
4298
8927

95
2,970
.70
641.5
924
0.228
549

95
95
2,946. 2,923.
94
36
660.8 680.6
4017
6538
0.235 0.242
406
4681

95
2,899
.97
701.0
853
0.249
742

95
2,876
.77
722.1
179
0.257
234

95
2,853.
76
743.7
8143
0.264
9515

95
2,830
.93
766.0
949
0.272
9

95
2,808.
28
789.0
7772
0.281
087

4,50
4,49 4,184
9.1
7.0
.3
55490. 50993 46809
9
.9
.5

4,17
5.6
42633.
9

4,167 4,159 4,152 4,145

.4
.7
.3
.5
38466 34306 30154 26009
.5
.8
.5
.0

4,13
9.1
2186
9.9

4,133 4,127
.2
.7
17736 13608
.7
.9

4,11
8.2
5368.
0

4,114
.1
1253.
9

4,110
.5

4,10
7.3

4,10
4.6

4,102
.4

4,10
0.6

4,09
9.2

2856.
5

6963.
8

1106
8.4

15170
.8

1927
1.4

23370
.6

NPV

2,227.74

IRR

3%

PBP

15 years

4,122
.7
9486.
2

20

PV targets & policies in European countries

Juan Ceballos

[1] Arnulf Jger-Waldau. Photovoltaics and renewable energies in Europe.

Renewable and sustainable energy reviews.11(2007). 1414-1437. Science Direct.
[2] European best practice report. Assessment of 12 national policy frameworks for
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[3] Libro blanco de las energas renovables. Available online:
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[4] Renewable energy road map. Available online:
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[5] Programa de trabajo de la energa renovable. Las energas renovables en el siglo
XXI: construccin de un futuro ms sostenible. COM(2006) 848 final. Available
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[6] Citizens' summary. EU climate and energy package.
[7] Dusonchet, L., Telaretti, E., Economic analysis of different supporting policies for
the production of electrical energy by solar photovoltaics in western Europena Union
countries. Energy Policy (2010), Elsevier. doi:10.1016/j.enpol.2010.01.053
[8] Policy still needed for solar growth. Renewable energy focus.
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online: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?
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[10] The support of electricity from renewable energy sources. Commission of the
European Communities. COM(2008) 18 final.
[11] Campoccia, A., Dusonchet, L., Telaretti, E., Zizzo, G. Feed-in Tariffs for Gridconnected PV Systems: The situation in the European Community. University of
Palermo. 2007.
[12] Hering, G., P. Hirshman, W. (2010). Top of the world. Photon International,
2-2010, p.50.
[13] M.C. Brito, J.M. Serra, J. Maia Alves, K. Lobato, A. Vallra. EVALUATION OF
THE IMPLEMENTATION OF PV FEED-IN LAW IN PORTUGAL. Faculty of
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[14] Zabalza B., I. Bloque 1:Rgimen especial: sistema de precios y primas.
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(Instituto espaol de comercio exterior). 2010.

21

PV targets & policies in European countries

Juan Ceballos

[16] The information site for the new guaranteed payments for renewable electricity in
the UK. Online: http://www.fitariffs.co.uk/
[17]. Official Journal of the European Communities L283/39. 27/10/01
[18]. Official Journal of the EU L140/46. 5/6/09
[19]. Directive 2009/28/EC

22