Photovoltaic Incentives - The advantages from RES

The incentives for renewables established by the FER1 Decree, legislation promoted by the Ministry of Economic Development and aimed at achieving the objectives established by the Energy and Climate 2030 plan, started from 30 September 2019. There are incentives for renewable energies established according to two distinct classes, based on the power of the plants less than or greater than 1 MW with two different access doors, respectively the registers and the rods. For the moment Myenergy have boast 100% of the projects admitted to the registers.

The decree is intended to give new impetus to the market both by encouraging the replacement of asbestos and eternity coverings and especially by favoring photovoltaics. Regardless, the legislation cannot replace a market that currently registers 500 / 600MW of new installations per year in Italy, even in market parity, regardless of public incentives.

Of course, it would be necessary to program a technical discipline at national level which, for example, facilitates the installation and use of various sources and facilitates procedures, such as connection to the network and the sale of energy to third parties: an example is given by the energy communities, districts within which it is allowed to exchange energy with variability of multiple sources and technologies.

What are the incentives for photovoltaics made available by the RES Decree?

The basic contribution rate is determined based on the power of the system, always on systems with a useful life of about 20 years.

The GSE provides an online guide to the 2019 renewable incentives of the Fer 1 Decree: plants admitted, access to incentives, facilitation mechanism.

Installations

First of all, the subdivision of the plants based on type, renewable energy source and category of intervention:

• Group A:
  • newly built on-shore wind farms, full reconstruction, reactivation or upgrading;
  • newly constructed photovoltaic systems.
• Group A-2: newly constructed photovoltaic systems, whose modules are installed to replace roofs of buildings and rural buildings on which the complete removal of eternity or asbestos is carried out.
• Group B:
  • newly built hydroelectric plants, full reconstruction (excluding aqueduct plants), reactivation or upgrading;
  • residual gas plants of new construction, reactivation or upgrading purification processes.
• Group C: plants subject to total or partial renovation
  • on-shore wind farms;
  • hydropower;
  • with residual gas from the purification processes.

Mechanism

Access to incentives involves two ways.

• Registration in the registers: for systems with a power greater than 1 kW (20 kW for photovoltaics) and less than 1 MW belonging to Groups A, A-2, B and C. The registers assign the power quota available on the based on specific priority criteria.
• Participation in tender procedures: plants with a power greater than or equal to 1 MW belonging to Groups A, B and C. Through the auctions, the available power quota is assigned, according to the greater discount offered on the incentive level and, on an equal basis reduction, applying further priority criteria

Bandi

Registration requests, to Registers and Auctions, are presented through the FER-E Portal, transmitting the requested documentation to the GSE. There are seven calls, with the following timescales:

In each of the seven Register or Auction procedures, different power quotas are assigned, according to the group to which the plants belong.

The incentive is recognized for the net electricity produced fed into the grid by the plant, three tariff definitions.

• Reference tariff: determined, according to the source and type of plant and power, applying the tariffs and any reductions provided for by the Ministerial Decree 23/6/2016, for non-photovoltaic systems registered in a useful position in the Registers, which come into operation within a year from the entry into force of the Ministerial Decree 04/07/2019 and who have not benefited from specific priority criteria provided by the latter. And the rates listed in Annex 1 to the Ministerial Decree 04/07/2019 for all other plants.
• Offer rate: calculated by applying any reductions requested by the Responsible Party during registration to the Registers or Auctions to the reference rate, in order to benefit from the related priority criteria.
• Rate due: calculated by applying the further reductions provided for by the Ministerial Decree to the rate offered 04/07/2019 for plants that are in a useful position in the rankings of Registers and Auctions and subsequently admitted to incentives.

Incentives

Finally, two incentive mechanisms:

• All-inclusive tariff (TO): consisting of a single tariff, corresponding to the tariff due, which also remunerates the electricity withdrawn by the GSE;
• Incentive (I), calculated as the difference between the rate due and the hourly zonal price of energy, since the energy produced remains in the operator's availability.

Power plants up to 250 kW can choose one of two modes, with the possibility of switching from one mode to another no more than twice during the entire incentive period. Plants with a power greater than 250 kW can instead access the incentive only.

Furthermore, the fact that the plant is built on a surface on which the reclamation has been carried out makes it possible to participate in a separate Register (Quota A-2) which, based on the final results of the applications submitted to the GSE on the first register (96 files submitted for a requested power of 15 MW, out of an availability of 100 MW, with 59 approved practices with an incentive power of 7.9 MW), presents a greater possibility of obtaining the incentive compared to plants built on asbestos-free roofing ( 522 files submitted for a required power of 92.3 MW, out of an availability of 45 MW, with 169 approved files with an incentive power of 45 MW equal to 100% of the available power).

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