Monumentally daft regulations proposed by the current Spanish Government would make solar-power generation at home economically unviable, despite Spain’s natural abundance of sunshine.
The Spanish Photovoltaic Union (UNEF) has launched a scathing attack on the Spanish government over draft legislation that it claims will cripple the country’s push toward energy self-sufficiency.
The Ministry of Industry is preparing a new law it says will be passed before the end of the current parliamentary term. But according to UNEF, which represents 300 companies in the renewable energy sector, the proposed rules do more harm than good.
“Spain is the only country in the world actively drafting legislation to prevent the development of energy self-sufficiency,” said UNEF’s managing director José Donoso, in comments to the Spanish press
31 years to break even
UNEF argues that the proposed legal changes will make it economically unviable for consumers to invest in solar power systems. Under the new rules, it estimates that an average household would need 31 years to recoup their investment, while small businesses would require around seven and a half years.
At the heart of the controversy is a revived version of the much-criticised “sun tax”, a surcharge for those who maintain a mains electricity connection while generating their own power—typically via rooftop solar panels—and feed surplus electricity back into the grid.
This charge, now rebranded but no less contentious, is based on the argument that everyone using the national infrastructure should help pay for it. The Ministry claims that exempting solar users from this cost would unfairly pass the burden onto other consumers.
Penalising self-sufficiency
While UNEF doesn’t oppose fair contributions to grid maintenance, it takes issue with what it sees as punitive treatment of those choosing to generate their own power.
“Self-sufficiency should be treated like any other form of energy efficiency,” says the association. “Instead, this law imposes higher costs on those who try to reduce their dependency on the grid.”
One of the biggest concerns is the taxation of self-generated electricity—a move UNEF describes as the worst aspect of the law. On top of that, the draft prohibits network access for solar and wind systems that use battery storage, a decision Donoso warns could backfire when storage technology inevitably becomes more competitive.
In another blow to the sector, the draft law also prohibits low-tariff users from pursuing self-sufficiency, further narrowing the pool of viable adopters.
Draconian sanctions
The proposed legislation doesn’t stop at unfriendly economics. It also includes an eye-watering sanction regime, with fines of up to €60 million for installations that fail to comply—retroactively—with the new rules.
UNEF points out that this figure is twice the fine for a nuclear leak and calls it “disproportionate to the point of absurdity”.
“No judge in their right mind would apply such a fine,” Donoso commented, reflecting the association’s confidence that any attempt to enforce such sanctions would be overturned in court.
Public consultation open
The Ministry has submitted the draft law to the National Commission for Markets and Competition (CNMC) and opened it up for public consultation. That may offer a glimmer of hope for revision, but for now, Spain’s solar sector sees itself under threat from the very authorities meant to support the energy transition.
Mark Stücklin says:
“I am appalled by the cynicism, hypocrisy and downright dishonesty of this act by the government, but I have lost the capacity to be surprised by them,” Stewart told me when I last talked to him about this.
http://www.spanishpropertyinsight.com/2013/07/24/government-plans-to-penalise-renewable-energy-production-at-home/
GarySFBCN says:
The previous actions by the current ruling party that allows for the ‘solar panel police’ to break down your door to do an inspection for tax purposes without a judge’s consent was enough to prevent me from installing solar panels. This current effort to further punish those who, at great expense, choose to not increase “greenhouse gasses”, is not logical, so I have to ask ‘who benefits from this’ ? Is this proposed law another example of corruption or is it just idiocy ? Not to mention that air pollution in Barcelona seems worse this year, than in the previous 10 years.
Roy Benahavis says:
No sense to try to give a logical comment either way on this subject as it just all absolutely typical of the Spanish State and their behaviour almost contempt for the intelligence of their citizens and non residents.
This is not even a political situation as whatever Government has been in power and in the Automonous Regions they have all been guily of this indefensible style behaviour;
Just such a great pity that in such a lovely country with such a beautiful culture the Authorities seem continuously bent on alienating the people who live here and introducing policies; laws and draconIan enforecement measures which are beginning to drive people away.
Buster says:
…& where could they run to?, since Corporate Fascism(Government controlled by & for corporate interests) has it’s iron grip on every country in the Western World & beyond.
Think it’s bad now, just wait ’til they do away with cash entirely. Then the real fun’ll begin!
Brave new World heh!
Roy Benahavis says:
Was not my intention to get into any political argument on this nor score any political points but in terms of where could they run to –
– UK has no inheritance tax between spouses:/ has no requiement to decalre ww assets ( only Spain has brough this in )
– Portugal has no inheritance tax and for ex pats zero tax on income from outside Portugal for ex pats
– Belgium has no wealth tax and minimal inheritance tax between spouses
-Italy has no inheritance tax betwwen spouses
– Countries like Belgium/Germany/France etc with far less sun than Spain actively encourage solar pawer and even pay people for any excess electricity they produce and not the other way round etc etc
List is endless and none of these countries have anything close to the tax ‘violation’ penalties that Spain has recently introduced whereby the fine could be as much as or even more than the actual items not disclosed- this is the policy of a fourth world country not a member of the EU.
Dr Shah says:
Well said