Denmark proposes reduced subsidy for small solar power facilities

Nov 7, 2012 - Denmark has proposed a reduction of the solar cell subsidy for private home owners, in a draft agreement, published Tuesday on the website of the Ministry of Climate and Energy.

It will become a little bit less attractive for family-home owners to install solar sells, but this is still very attractive, Minister of Climate and Energy, Martin Lidegaard, told online news portal dr.dk yesterday.

With the current annualised net meter scheme, solar cell owners can sell excess power to utility companies, and buy back power without fees, when the cells do not supply enough electricity to cover their needs. The production and consumption of solar cell owners is calculated and settled on an annual basis. If consumption has exceeded production throughout the year, they pay for the difference.

According to the new proposal, solar cell owners can sell excess power to utility companies at DKK 1.30 (USD 0.22/EUR 0.17) per kWh, but should pay full price for extra power, when the solar cells are producing less power than they are consuming.

The changes aims to make solar cell owners change their consumtion pattern and use most power when the solar cells are producint at their peak.

In exchange, solar cell owners will temporarily get a higher price of DKK 1.30 per kWh for the excess power they generate. The price will be gradually adjusted, until in five years it is equal to the same price as today, DKK 0.60 per kWh. The price will be lowered as the government expects that a solar power facility will become cheaper to install over the years, thus maintaining a pay-back period of some 10 years.

The government will also make it more attractive for companies to invest in big solar power facilities.

The plans is that the new rules should apply for solar power facilities, installed from 2013 onwards.

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