Teknel Srl

ENERGY

Photovoltaic Systems

NEW ENERGY REPORT 2007

Beneficiaries of the "Energy Account"

• individuals

• juridical persons

• public persons

• blocks of owned housing flats and/or buildings (Ref: art.3, clause 1)

Incentive power with energy account in net metering:

The nominal power of the systems must be higher than 1 kWp, divided into three power ranges:

- 1 < P <3 kWp

- 3 < P <20 kWp

- P > 20 kWp

As well as this value of nominal power, the energy cannot be exchanged with the Distributing Body in the net metering regime, but directly marketed.

Types of system

• “non-integrated" photovoltaic systems
• “partially integrated” photovoltaic systems
• photovoltaic systems with “architectural integration"

Non-integrated systems

When the units are installed:

• in the ground

• not level with the surfaces on which they are fixed, both in the event of urban furniture elements and various elements (*), as well as roofs (only in the event of pitch roofs) or building façades. (*) including sound barriers, cantilever roofs, pergolas and canopies. Also including parking roofs, street-lamps (always network connection and therefore battery-free), pollution systems installed in the ground. (Ref: art.4, clause 5; art.2, clause 1 / letter b1; attachment 2)

Examples of non-integrated systems

Partially-integrated systems

When the units - not being materials that determine the support surface - are installed:

• on flat roofs and the terraces of buildings and structures (1) ;
• in a coplanar way to the surfaces of the buildings on which they are fixed (pitch roofs, coverings, façades, balustrades, parapets);
• to elements of street furniture and various other elements (2).
  (1) also parallel to inclined units and therefore not coplanar to the roof; if there is a balustrade around the latter they must be installed with an inclination such that the share corresponding to half of the height of the units does not exceed the height of the balustrade.
• (2) coverings for car parks, bus stops, photovoltaic (battery-free) lamps (Ref: art.4, clause 1; art.2, clause 1/letter b2; attachment 2)

Examples of Partially-integrated systems

Systems with architectural integration

1. The units replace the materials used for covering roofs, the façades of buildings and structures, having the same inclination and architectural function.

2. The units and relative support systems make up the covering structure of marquees, pergolas and canopies.

3. The units replace the transparent or semi-transparent part of façades and skylights, guaranteeing the access of natural light to the building’s interior.

4. The units replace part of the sound-absorbent panels of the acoustic barriers.

5. The units replace the sun-exposed section of the reflective parts inserted in lighting elements (street-lamps with lights exposed to reflective surfaces).

6. The units and relative support systems make up sun breakers.

7. The units make up the covering elements of balustrades and parapets.

8. The units replace or integrate windowpanes.

9.  The units make up the structural elements of window-blinds.

10. The units make up the covering adhering to the surfaces described in the above types.

(Ref: art.4, clause5; art.2, clause1/letter b3; attachment 3)

Incentive rates access procedures

1. Once the system is completed this is communicated to the network manager (ESM) and the system’s preliminary project is forwarded to the network manager (local electricity distributor) requesting connection to the network.

If the system in question is of between 1 and 20 kWp in power and the “on-site exchange” service for the electricity produced is required, this must be clearly specified. (Ref: art.5, clauses 1 and 3)

2. The following must be forwarded to the ESM (electricity system manager) within 60 days from the system start-up:

- Request for the incentive rate grant

- The final start-up documentation (attachment 4 of the decree) 
(Ref: art.5, clause 4)

3. The ESM, within 60 days from the request for the incentive rate, will inform the owner of the system of the rate granted. (Ref art.5, clause 5.)

On-site exchange or On-line transfer

For systems of between 1 and 20 kWp, on-site exchange is normally preferred (considering the economic advantages that said choice allows) to the online transfer of the produced energy.

On-site exchange: an “exchange regime” (net metering) is used with the local electricity network:

• during sunlight hours, the system produces energy that is (if required) used directly and/or transferred to the electricity network of the Distributor Body;
• during night-time hours, the user still takes the necessary energy from the Distributing Body.
  At the end of the year, the Distributing Body will close the balance between the overall energy produced via the FV system and that used.

Online transfer: it is possible to transfer the energy produced online by selling it to the network manager or rather on the free market.

Connection for the “Energy Account” systems

Authorisations

If no authorisation is necessary (e.g., landscaping authorisation, reservoir organisation authorisation, etc.) for the construction and activity of photovoltaic systems, the single authorisation is not necessary. The start of work report (D.I.A.) is sufficient.

If one other type of authorisation is required, this provision replaces the single authorisation. (Ref: art.5, clause 7)

Systems of less than 20kWp are not considered industrial systems and therefore are not subject to environmental inspections, as long as they are not located in protected areas. (Ref: art. 5, clause 8)

Photovoltaic systems can be installed in agricultural areas: it is not therefore necessary to change the allocation for use of the site in which the system is to be installed. (Ref: art.5, clause 9)

Incentive rates

These rates apply to those systems that started activity after the day following the AEEG resolution and before 31^st December 2008.

The incentive rate is allowed for 20 years and remains constant over time, with no inflation tax update. (Ref: art.5, clause 1)

Rates before 31/12/2008

From the 1^st January 2009

These will be reduced by 2% for every year after 2008.

They will be valid for 20 years and will remain constant in the same period, without being affected by inflation. (Ref: art.6, clause 2)

From 2009 new decrees updating the rates will be issued every 2 years.

Should this not happen, the rates valid in 2010 will be valid, until such a time when new decrees are published.
(Ref: art.6, clause 3)

 
Rates valid from 1^st January 2009 to 31^st December 2010

How the rates will vary after 31^st December 2010

From 2009, new decrees will be issued to update the rates.  

Should this not happen, the rates valid in 2010 will be valid, until such a time when new decrees are published.
(Ref: art.6, clause 3

Rates increase (1)

The rates will be increased when:

1. most of the energy produced is consumed by the system’s registered owner.
2. on some public buildings
3. for integrated systems installed on agricultural companies and in the case of asbestos decontamination (Ref: art.6, clause 4/letter a)

Rates increase (2)               

Increase of 5% for “non-integrated” systems of which 70% of the energy producing is consumed through general use. (Ref: art.6, clause 4/letter a)

Increase of 5% for systems on schools and public health structures, and on public buildings of councils with at least 5000 inhabitants. (Ref: art.6, clause 4/letter b and d)

Increase of 5% for “integrated” systems for agricultural companies and “integrated” systems that replace asbestos covers. (Ref: art.6 clause, 4/letter c)

EThere are “PREMIUMS” for the efficient use of energy (1)

These are applicable to systems that work in the “on-site exchange” regime.

• A certification of energy qualification (*) is drawn up for offices in which a photovoltaic system is already installed or is about to be installed, specifying those interventions which can reduce the building’s consumption.
• After the photovoltaic system is activated, some interventions are carried out (already indicated by the energy certification) to reduce energy consumption by at least 10%.
  A second energy certificate will confirm the results.
• Both certificates (before and after the intervention) are sent to the ESM to apply for the premium, which will be calculated from the solar year following the request date.
• The premium will be a rate increase of a percentage equal to half of the energy savings, a percentage obtained thanks to the interventions carried out. The premium will be no more than 30%.
  (*) this will be replaced by the energy certification as soon as the national guidelines for the energy certifications of buildings come into force. (Ref Art.7, clauses 1, 2, 3, 4, 5, 6)

“Premiums” on newly-constructed buildings

As well as the incentive, are there other benefits?

In addition to the incentive rate and the premium recognised on all of the energy produced for systems of less than 20 kWp, you can also benefit from the onsite exchange regime.

For those systems that do not benefit from onsite exchange, the energy produced, once issued on the network, is obtained by the local electricity distributor or transferred to the market. (Ref: art.8)

Can I combine the energy account incentive and the premium with other forms of incentives? (1)

You cannot use the incentive and premium if other public incentives have been granted in capital accounts and/or in accounts with interest higher than 20% of the investment costs.

Only public schools and public health structures can take advantage of both incentives in the capital account and/or in interest accounts as well as the incentive and premium in the energy account.
(Ref: art.9, clause1)

Can I combine the energy account incentive and the premium with other forms of incentives? (2)

No, you cannot combine the incentive rate and the premium with:

• Green certificates
• Energy efficiency shares (Legislative Decree 75/1999 and Legislative Decree 164/2000)

The following systems cannot benefit from the incentive and the premium:

• Systems built for the issuing of the energy certificate (Legislative Decree 192/2005 and further amendments or Law L.296/2006 and further amendments) which was introduced after 31/12/2010;
• Systems for which tax deductions were recognised or requested for building value recuperation interventions. (Ref: art.9, clauses 2, 3 and 4)

How are the incentives granted?

Payment is made the following month after the bimestrial amount accumulated exceeds € 250, for systems of 1 to 20 kWp, and € 500 for systems of more than 20 kWp. (Ref: art.10)

Examples of FV Systems (1)

Let’s take into consideration a partially-integrated, 49.5 kWp FV system at Crotone:

Productibility: 84,051 kWh /year

Incentive: 0.40 €/kWh

System economic account

1. Annual realisation of the incentive: incentive X production = 0.40 X 84,051 =33,620.40
2. Predicted annual consumption: 70,000 kWh
3. Final savings: Consumption times Enel rate = 70,000 kWh x 0.18 € = 12,600 €
4. Surplus energy: Production - Consumption = 84,051-70,000 = 14,051 kWh
5. Sale of surplus energy to Enel: Quant. energy – purchase rate = 14,051 kWh x 0.095 = 1,334.8 €
6. Total annual profit: incentive + final savings + energy sales = 33,620.40 € + 12,600 € 1,334.8 € =47,554.80 € /year.