A Backlash for PV Systems?
PV System Sprawl
Just a decade ago an investment of a solar system would not have been economically viable due to high investment costs, low efficiency and undeveloped technique. However, governmental subsidies and schemes to encourage electricity production from PV systems parallel to developed technology and reduced costs have led to a PV-progression over the last five years. In fact in 2014, according to IEA-PVPS, the installation of PV systems in Sweden doubled for the fourth year in a row. Despite of this progression of PV system installations, solar energy only contribute to approximately 0,05 % of Sweden’s total energy consumption (Energimyndigheten, 2015) to be compared with Germany where solar energy contributes to 5,8 % which mainly is a result of encouraging policy strategies and an electricity price double that in Sweden making a PV installation more economically viable (energytransition.de, 2015). In Sweden, a considerable measurement to encourage PV installation was the recent introduction of net-debiting enabling PV owners to waive over-production of electricity with consumption. This was not possible just a few years ago hence the PV system needed to be designed to meet owner's peak load (Ny teknik, 2015). Recently a non-government bill was raised by the Swedish Finansdepartementet suggesting taxation of SEK 0,30/kWh of PV-produced electricity, which is currently tax-exempted, effective summer 2016, by systems larger than 144kW, which equals an approximate PV-surface of 1 000 square meters. The taxation applies also if a juridical or natural person owns multiple smaller PV systems individually smaller than 144kWh but together exceeds 144kW. (DI, 2015)
Just a decade ago an investment of a solar system would not have been economically viable due to high investment costs, low efficiency and undeveloped technique. However, governmental subsidies and schemes to encourage electricity production from PV systems parallel to developed technology and reduced costs have led to a PV-progression over the last five years. In fact in 2014, according to IEA-PVPS, the installation of PV systems in Sweden doubled for the fourth year in a row. Despite of this progression of PV system installations, solar energy only contribute to approximately 0,05 % of Sweden’s total energy consumption (Energimyndigheten, 2015) to be compared with Germany where solar energy contributes to 5,8 % which mainly is a result of encouraging policy strategies and an electricity price double that in Sweden making a PV installation more economically viable (energytransition.de, 2015). In Sweden, a considerable measurement to encourage PV installation was the recent introduction of net-debiting enabling PV owners to waive over-production of electricity with consumption. This was not possible just a few years ago hence the PV system needed to be designed to meet owner's peak load (Ny teknik, 2015). Recently a non-government bill was raised by the Swedish Finansdepartementet suggesting taxation of SEK 0,30/kWh of PV-produced electricity, which is currently tax-exempted, effective summer 2016, by systems larger than 144kW, which equals an approximate PV-surface of 1 000 square meters. The taxation applies also if a juridical or natural person owns multiple smaller PV systems individually smaller than 144kWh but together exceeds 144kW. (DI, 2015)
Will the Sprawl Continue?
In spite of high investment costs and slow return of investment, commercial businesses, private house holds and industries have taken a step in the direction of becoming at least partially self-suppliant of electricity by installing PV systems. The introduction of net-debiting, on top of government subsidies and EU-grants, spurred growth of PV produced electricity in Sweden over the last five years. A continuous development in the same direction would lead to an increase of electricity self-supporting private house holds, industries and property owners and people becoming more habituated with PV power. However, the non-government bill on taxation not only will amerce those already invested in the environment but also those who have plans to. Property owners planning on installing multiple smaller PV systems will be taxed although the individual systems are smaller than 144kW each. The already stressed economical aspect on a PV investment would be even more pinned down and plans on PV integration in new buildings and installation by property owners and companies might be resigned or at the least reconsidered due to the taxation. The general responsibility of the increase of PV produced electricity should fall on state-level in terms of management control measurements, active investment aids, knowledge dispersion and normalization of incidence of PV systems, not the other way around. Thus reforming of the current monopoly-like electricity market in order to lay up for a future with numerous smaller electricity producers. Paradoxically, to be achieved by a government that owns and controls a majority of the power plants generating substantial state yield.
In spite of high investment costs and slow return of investment, commercial businesses, private house holds and industries have taken a step in the direction of becoming at least partially self-suppliant of electricity by installing PV systems. The introduction of net-debiting, on top of government subsidies and EU-grants, spurred growth of PV produced electricity in Sweden over the last five years. A continuous development in the same direction would lead to an increase of electricity self-supporting private house holds, industries and property owners and people becoming more habituated with PV power. However, the non-government bill on taxation not only will amerce those already invested in the environment but also those who have plans to. Property owners planning on installing multiple smaller PV systems will be taxed although the individual systems are smaller than 144kW each. The already stressed economical aspect on a PV investment would be even more pinned down and plans on PV integration in new buildings and installation by property owners and companies might be resigned or at the least reconsidered due to the taxation. The general responsibility of the increase of PV produced electricity should fall on state-level in terms of management control measurements, active investment aids, knowledge dispersion and normalization of incidence of PV systems, not the other way around. Thus reforming of the current monopoly-like electricity market in order to lay up for a future with numerous smaller electricity producers. Paradoxically, to be achieved by a government that owns and controls a majority of the power plants generating substantial state yield.
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