Transition from Feed-in Tariff to Net Metering in Greece

1. The step from the Feed-in Tariff to Net Metering Photovoltaic Sector in Greece 8th International Scientific Conference on “Energy and Climate Change” 7-9 October 2015 Athens, Greece Organized by Energy Policy and Development Centre (KEPA) Coordinator of P R O M I T H E A S The Energy and Climate Change Policy Network Dr. Anastasios Antonakos General Manager NanoDomi

2. SOLAR PV MARKET GLOBALLY Mature, cost competitive technology 37 GW in 2013 , 40 in 2014 Cumulative capacity 178 GW

3. EUROPEAN PV MARKET Installations slowed down, transitioning period, PV integration into electricity market

4. PV MARKET in Greece 5th worldwide to per capita installed PV capacity, 1 GW of new installations in 2013, 2014 only 17 MW. 4,5 bn € invested during the last 5 years, cumulative installed capacity 2600 MW. (blueannual installed capacity) - (red cumulative installed capacity)

5. PV SEGMENTATION IN GREECE Yellow:Islands –Blue:Mainland

6. PV SEGMENTATION IN GREECE Yellow:Ground mounted systems –Blue:Roof mounted systems

7. FIT SUPPORT SCHEME FIT was created to support a not competitive energy source Investment returns reached exotic figures Policy was reviewed retroactively Return on Investment Evolution

8. BUILDING INSTALLATIONS WITH FIT FIT support scheme for building installations was created Compensation prices had to be reduced EVOLUTION OF THE FIT FOR THE ROOF MOUTNED INSTALLATIONS IN GREECE

9. NET METERING Became available due to the lower cost of PV systems, Prices decline 75% in the last 10 years

10. How does Net Metering work • Under the net metering scheme, the installed photovoltaic system is connected to the power grid. The produced power is consumed directly by the consumer and any instant excess is channeled to the grid. • Energy offset per energy bill & yearly.

11. How does Net Metering work

12. Net metering advantages • Minimize the cost of electric energy. • Energy offset • Capability to minimize the cost for heating – cooling – hot water by combine net metering with heat pumps. • Sustainable model. The net metering does not does not burden the system and other consumers On the contrary, it stabilize the grid and it is according to the “smart grid” future scheme, where energy production should be done near to consumption. • Low risk, no revisions in countries where it is already running • enhances the energy class and value of the property. • In line with the New Building Regulations. • The energy which is produced but not consumed instantly is not lost (like in off grid systems) but it is transferred up to a year to offset against days when production is less than consumption

13. What is the applicable law regarding net metering? • Self consumption on mid and low voltage connections • Currently only via photovoltaic technology is allowed • The energy offset takes place annual • The maximum installation is 20kw for houses or businesses  except factories that can have installed 50% of their nominal power (ie also Medium voltage is capable now) • Maximum 20kw on not grid connected islands and 50kw for Creta • For charitable companies even 100% of nominal power can be installed • Installation not only on rooftop, but also in your field or in the next door field • Not only owners but also leaseholders can install net metering PV • On a block of flats every flat can have its own PV system

14. Feed-in-tariff VS NET METERING

15. 10 KwRESIDENTAL INSTALLATION

16. 10 KwRESIDENTAL INSTALLATION compared witH fit and time deposit

17. 25 Kwcommercial INSTALLATION CONSUMPTION –PRODUCTION PROFILE

18. 25 Kwcommercial INSTALLATION

19. 25 KwCOMMERCIAL INSTALLATION compared witH fit And time deposit

20. EXAMPLE COUNTRIES wiTHneT METERING scheMes • Denmark • Netherlands • Belgium • Italy • Cyprus • Hungary • Canada • USA (offers net metering for other renewable sources as well)

21. Conclusions – Proposals • Solar PV technology is a reliable cost-competitive energy source that can power the future of humanity. • Feed in tariff support schemes supported the growth of the market. • Policy mistakes were made in the past this should not be charged to the technology itself. • Today many developed countries offer net-metering (USA for other renewable technologies as well) • Net metering can offer very good financial returns especially if combined with other energy saving technologies (such as heat pump). • The risk of such investment is considerably lower than FIT • A stable economic environment combined with an organized market could resurrect the solar PV market and restore the faith to the technology. • An additional boost to the market could be given if net-metering was accompanied by addition incentives such as:

22. Conclusions – Proposals • An additional boost to the market could be given if net-metering was accompanied by addition incentives such as: • Grant or/and government guaranteed bank loans to the producer • Excess energy (or part of the excess energy) was compensated with the grid marginal price • Excess energy was stored in batteries • Additional funding for the batteries, that would eventually drive their cost down

23. End of presentation Dipl. Eng. Konstantinos LOUKIDIS Energy Engineer, Project Manager, ENTEKA S.A. Dr. Anastasios ANTONAKOS General Manager, NanoDomi Dipl. Eng. Konstantinos GKARAKIS Energy Engineer MSc, TEI Athens/Energy Engineering Dept.