8
July

The legislation of photovoltaic systems in Italy and the new FER 1 Decree



The installation of a photovoltaic system in Italy is very advantageous because there is a favourable legislation and tax advantages that allow users and companies to have a good return on their investment. Moreover it is possible to self-consume the energy produced by the PV plant and sell the surplus on the electricity market in many ways.

In particular, some recent decrees should encourage investments in the sector.

The 2019 Budget Law has extended until 31 December 2019 the bonus for the installation of residential photovoltaic systems with power up to 20 kW. The tax deduction amounts to 50% up to a maximum expenditure of 96,000 euros per single housing unit and is divided into 10 equal annual quotes.

decree-fer1

The decree of reference for photovoltaic plants with power over 20 kW is the Ministerial Decree FER 1, which is currently in the approval phase for the definitive signature to the Court of Auditors. This Decree refers more generally to renewable energy sources, has been drafted for technologies considered “mature” and is based on the concept of technological neutrality. The feed in tariff time horizon is the three-year period 2019-2021.

The decree is based on awarding competitive downward procedures starting from basic rates. Photovoltaic plants with a power below 1 MW are subject to be listed in a register, while PV systems with power over 1 MW must participate to bid auctions.

decree-fer1-register-auctions

Participants to auctions must demonstrate adequate financial and economic soundness and are also required to present a deposit equal to 10% of the investment cost foreseen for the construction of the PV plant (conventional cost 1000 €/kW), half of which is to be paid before participating to the auction.

Before participating in auctions or registers, it is also necessary to have got the certifications for the construction and operation of the PV plant and have accepted the documents necessary for the connection to the electrical grid. The description construction start can be transmitted to the competent administration only after the results of the tender.

Power Quotas

There are 8 announcements with power quotas divided by procedure and technologies.

decreto-fer1-auctions-power-quotas decree-fer1-contingenti-potenza- aste

Feed In Tariff

The  feed in tariff is paid on the electricity fed into the electrical grid by the photovoltaic system:

decree-fer1-feed-in-tariff-formula

–  Inew : Feed In Tariff [€/MWh]

–  Tb : base rate, as shown in the table below [€/MWh]

–  R : percentage reduction awarded on register or auction [%]

– Pz : hourly zone price [€/MWh]

decree-fer1-base-feed-in-tariffs

asbestos-icon

With this new Decree the construction of photovoltaic systems, whose modules are installed to completely replace asbestos roofs, is very advantageous.

In these cases an additional premium of 12 € / MWh is paid on all the produced energy.

 self-consumption.icon

The decree also gives greater attention to small self-consumption PV plants up to 100 kW, with the introduction of a premium equal to 10 € / MWh on the net production consumed on site.

Generally, a photovoltaic system that accesses to the incentives will have the following recognized revenues:

decree-fer1-total-revenues

The energy is in any case available to the producer, who can sell it to a trader of his choice.

Installations under 250 kW, as an alternative to the payment method described above, can request the all-inclusive tariff, which includes the tariff and the sales value of the electricity.

Priority Criteria

The Fer1 Decree provides some priority criteria for the ranking:

REGISTER

  • Plants built on landfills / disused and reclaimed quarries

  • Plants built on schools, hospitals, public buildings

  • Coupling with charging stations for electric vehicles

  • Greater percentage reduction and lower absolute tariff due.

AUCTIONS

  • Greater percentage reduction offered

  • Plants built on landfills / disused and reclaimed quarries

  • All groups: possession of an adequate rating of legality of the Company


Enerray, with 12 years of experience, is an Italian company leader in the design, construction and management of industrial and utility scale photovoltaic systems. We are able to offer support for all aspects concerning legislation, accompanying the customer step by step in the development and implementation of the photovoltaic system, thus maximizing the investment.

Would you like to get more information on the new FER 1 Decree ? Contact us>

 


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