alvar palm (iiiee, lund university) lessons from swedish pv policy 18022016
TRANSCRIPT
Swedish PV market and context
• ~100 installation firms (typically small, diversified)• Installed capacity: ~100 MW• ”Free” electricity market Surplus can be sold at spot
prices (or more if there is a buyer)• Low electricity prices
Swedish PV policy: Overview
• Support:– Investment subsidy (2009-)– Free grid connection (2010)– Tax reduction (2015-)– Tradable permits (general support for renewable
electricity) (2003-)• Tax rules: Ambiguous…• Overall policy environment: Complex,
uncertain
Tradable certificates (2003-)
• Main Swedish support for renewable electricity• ”Technology neutral”, ”market based”• Certificates granted corresponding to renewable
production (others need to buy certificates)• Poorly adapted for micro-production
– Hassle obtaining/trading small quantities– Difficult/costly for self-consumption
• Only 30% of PV users have joined (all are formallyentitled)
Investment subsidy• Main driver of Swedish PV market – but…• Unpredictable (decisions have been taken at very short
notice)• Capped – when money runs out, no more applications are
approved (until new funding is secured)– Long queue (one year in 2013)– Problems for installers (stop-and-go market)
More expensive for consumers
Guaranteed grid connection (2010)
• Legal right to connect PV to grid• Grid operator must install metering
equipment without charge• Effective, low-cost intervention!
Tax reduction (2015-)
• Introduced ”instead of” net metering• Tax reduced by 0.06 €/kWh for electricity fed
into grid (up to 30,000 kWh/year)• Also for sold electricity• Individuals and organisations• Main fuse <100 A
Tax rules
• VAT on sold electricity– Ambiguous rules (mandatory says tax agency, no/few
individuals have registered)– High transaction costs (for individuals and society)– Uncertain future
• Tax on self-consumed PV electricity– Ambiguous rules (no/few individuals pay)– From July 2016: Exempt <255 kW– Fairness issue – organisation structure:
1000+ stores, one juridical person600+ stores, many juridical persons
Local initiatives
• Grid operators– Sell and market PV– Arrange information seminars– Buy electricity at favourable rates– Often backed by municipalities (owners)
Successful for increasing PV uptake! (Palm, 2016)
Implementation process
• EU compatibility – poor knowledge of what is allowed (led to severe delays/uncertainties)
• Internal compatibility – existing rules are not adapted to micro-production
• Policy learning: Instead of learning from successful cases (Germany), Sweden tried toreinvent the wheel – with poor result
Better approach: Germany
• Procedure:– Decide how profitable PV systems should be (e.g.
7% yearly return on investment)– Set subsidies accordingly, guaranteed for several
(15-20) years– Frequently monitor price reductions of PV systems
and reduce subsidies for new entrants
Lessons from Sweden• Avoid uncertainties
– Installers: What will the market look like a year from now?– Users:
• Will I get subsidies, permits (building, grid connection)?• General system trust: Will new taxes/whatever be introduced after I
buy PV?• Avoid complexity
– Overlapping financial supports– Difficulties of use/understand
• Check compatibility early (EU, internal), update outdatedrules in tax/electricity system
• Efficiency/fairness: Favour small actors/installations?• Emulate the best, not the closest