New Photovoltaic Regulations

30 November 2010

Following on months of uncertainty, on November 23 the Official State Gazette (no. 283, section 17976) published Royal Decree 1565/2010 dated November 19th, which regulates and modifies specific aspects relating to the activity of electrical energy production under the special regime. Its entry into effect took place on November 24, 2010.

As regards effects to the tariff regime for photovoltaic installations, the new regulation features some significant changes. In the first place, existing photovoltaic installations, the economic regime of which is governed by Royal Decree 661/2007, will experience a withdrawal of this tariff starting from its twenty-sixth year. Therefore, the tariff provided in the Royal Decree 661/2007 shall only be applicable to such installations during the first twenty five years of operations.

Secondly, a reduction of the photovoltaic tariff is established for new installations including (i) a 5% reduction for installations with power lower or equal to 20 kW located on rooftops, (ii) a 25% reduction for installations with power above 20 kW located on rooftops, and (iii) a 45% reduction for all ground installations. Although the wording of the new Royal Decree has generated certain doubts regarding the beginning date, up to which said reduction shall apply, everything suggests that the projects obtaining the Registration in Tariff Provisional Assignment Registry in the second quarter of 2011(Q2 2011) would be the first ones among affected.

Furthermore, the new Royal Decree has introduced several obligations of technical nature that must be fulfilled by all installations or only by those ones that reach a certain power capacity. Finally, the proceeding to obtain Registration in Tariff Provisional Assignment Registry has been changed. Now it is necessary to file – only possible in the online mode – a request for each calling in which the photovoltaic project or installation are to participate.

For further information please contact Antonio C. Jiménez: