DIRECTORATE GENERAL FOR NEIGHBOURHOOD AND ENLARGEMENT NEGOTIATIONS – DG NEAR Short Term High Quality Studies to Support Activities under the Eastern Partnership HiQSTEP PROJECT STUDY ON THE EFFECT OF THE PLACEMENT OF SOLAR PANELS ON BUILDINGS TO INCREASE ENERGY SECURITY AND ENERGY EFFICIENCY AND DEVELOP CLEAN ENERGY IN THE EASTERN PARTNERSHIP COUNTRIES Component 1 Report: Review of the EU Experience with Building-PVs July 2017 This report has been prepared by the KANTOR Management Consultants Consortium. The findings, conclusions and interpretations expressed in this document are those of the Consortium alone and should in no way be taken to reflect the policies or opinions of the European Commission List of abbreviations AM Armenia ANRE The National Regulatory Authority for Energy in Moldova AREA Azerbaijan State Agency on Alternative and Renewable Energy Sources AZ Azerbaijan BY Belarus CBA Cost Benefit Analysis CEER Council of European Energy Regulators DGPV Distributed Generation from Photovoltaics EaP Eastern Partnership EC European Commission ECT Energy Community Treaty EU European Union EUD EU Delegation GE Georgia GEDF Georgian Energy Development Fund GWNERC Georgian Water and Energy Regulatory Commission HiQSTEP Short term high quality studies to support activities under the Eastern Partnership MD Moldova NEURC National Energy and Utilities Regulatory Commission of Ukraine PSRC Public Services Regulatory Commission of the Republic of Armenia PV Photovoltaic(s) R2E2 Armenia Renewable Resources and Energy Efficiency Fund RES Renewable Energy Sources SAEEE State Agency on Energy Efficiency and Energy Saving of Ukraine STL Study Team Leader T&D Transmission and Distribution TOR Terms of Reference UA Ukraine MS Member State SPE Solar Power Europe ROO Renewable Obligation Order i Table of Contents Preamble .................................................................................................................................... 7 1 Introduction ......................................................................................................................... 8 1.1 PV deployment in the EU ............................................................................................. 8 1.2 Support schemes for PV deployment in the EU .......................................................... 11 1.2.1 Current trends ..................................................................................................... 11 2 Building - PVs .................................................................................................................... 14 2.1 A quick overview of PV technology ............................................................................. 14 2.1.1 PV module types ................................................................................................. 15 2.1.2 Roof mounting systems ....................................................................................... 16 2.1.3 Building integrated PV (BIPV) ............................................................................. 18 2.1.4 Inverter and electromechanical equipment .......................................................... 20 2.1.5 PV system costs .................................................................................................. 22 2.2 Legal and regulatory specificities of building-PV systems ........................................... 26 2.3 The effect of storage in self-generation and the era of prosumers .............................. 28 2.3.1 Storage in decentralised PV systems in buildings ............................................... 28 2.3.2 Worlds collide: generation profile meets demand profile at a building level ......... 29 2.4 Grid integration of PV-based distributed generation ................................................... 34 2.4.1 Power systems transition and overview of impacts .............................................. 34 2.4.2 Specific considerations in relation to an increased PV penetration rate ............... 36 2.4.3 Impact on operations ........................................................................................... 42 2.4.4 Impact on infrastructure ....................................................................................... 50 3 The framework for building-PV deployment ....................................................................... 56 3.1 Legal & regulatory framework ..................................................................................... 56 3.1.1 European framework ........................................................................................... 56 3.1.2 Licensing ............................................................................................................. 58 3.2 Overview of support mechanisms ............................................................................... 59 3.2.1 Capital cost based support .................................................................................. 60 3.2.2 Production based support ................................................................................... 61 3.2.3 Funding of the support schemes ......................................................................... 63 3.3 Rooftop market decision making consideration .......................................................... 64 3.4 Ownership & business models for roof top PVs .......................................................... 66 4 Overview of framework conditions in selected MS ............................................................. 68 4.1 Germany .................................................................................................................... 69 4.1.1 Licensing ............................................................................................................. 71 4.1.2 Grid connection ................................................................................................... 71 4.1.3 Support mechanisms........................................................................................... 72 4.1.4 Project financing .................................................................................................. 73 4.1.5 Ownership and business models ......................................................................... 74 4.2 Greece ....................................................................................................................... 75 4.2.1 Licensing ............................................................................................................. 76 4.2.2 Grid connection ................................................................................................... 77 4.2.3 Support mechanisms........................................................................................... 77 4.2.4 Project financing .................................................................................................. 80 4.2.5 Ownership and business models ......................................................................... 80 4.3 Italy ............................................................................................................................ 81 ii 4.3.1 Overview ............................................................................................................. 82 4.3.2 Licensing ............................................................................................................. 83 4.3.3 Grid connection ................................................................................................... 84 4.3.4 Support mechanism ............................................................................................ 85 4.3.5 Project financing .................................................................................................. 87 4.3.6 Ownership and business models ......................................................................... 88 4.4 Netherlands ................................................................................................................ 89 4.4.1 Licensing ............................................................................................................. 90 4.4.2 Grid connection ................................................................................................... 91 4.4.3 Support mechanisms........................................................................................... 91 4.4.4 Project financing .................................................................................................. 92 4.4.5 Ownership and business models ......................................................................... 93 4.5 UK .............................................................................................................................. 93 4.5.1 Licensing ............................................................................................................. 95 4.5.2 Grid connection ................................................................................................... 96 4.5.3 Support mechanisms........................................................................................... 96 4.5.4 Project financing .................................................................................................. 98 4.5.5 Ownership and business models ......................................................................... 99 4.6 Conclusions on the framework conditions of selected MSs ...................................... 100 5 Review of pilot programmes ...........................................................................................