Source: http://database.pv-financing.eu/en/database/pvgrid/slovenia/national-profile-14/residential-systems/2701/residential-building-rooftop-pv-systems-1.html
Timestamp: 2018-12-13 12:05:29
Document Index: 388766766

Matched Legal Cases: ['§ 23', '§ 23', '§ 23', '§ 11', '§ 23', '§ 11', '§ 17', '§ 20']

Slovenia, Residential Systems, Residential building rooftop PV systems
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Slovenia: Residential building rooftop PV systems
The sector of small rooftop systems on residential buildings in Slovenia has developed rapidly in the years 2010-2012. Changes in the support mechanism in late 2012 (lower/regressive feed-in prices) and 2015 (introduction of a tendering procedure) led to an almost complete stop in terms of investments into the PV industry. The tendering process was not opened untill late 2016. Due to current tender criteria in the support ... (Unhide text)scheme PV appliances have little to no chances to compete with other renewable energy source systems. PV installations of up to 10 kWp may however opt for the "net-metering" scheme.
Based on past experiences the obstacles concerning this segment have been:
1. an investor is forced to register either a businnes activity or run a company due to tax legislation (specific criteria apply to farmers and pensioneers);
2. due to poor regulations and little to no case law electricity distributors have (too) much authority when it comes to connecting the appliance to the network, as a result this can crucially influence the price and length of an investment;
3. the favourising of larger PV installations in the past has left many small producers less willing to invest. (Hide text)
Rooftop PV systems on residential buildings fall under the general legislation for RES Systems up to 1 MWp (simple devices).
Acquire the Location information
In order to avoid complications in terms of land use legislation (ex. if the site is in Natura 2000 or similar) the investor is advised to aquire the preliminary location information from the local municipality if there is any special land-use legislation applicable to the location of the planned PV installation. The procedure follows the general administration process and requires a small fee.
Spatial Planning Act
Long waiting time to get approval
If the building on which the PV plant will be installed is for example close to road or railway or in some protected areas (ex. Natura 2000) or if the cable entry would pass through such an area, an approval from a competent institution would be required, which may delay the overall process.
§ 23 ff. of the Decree on Energy Infrastructure
Check the suitability of the roof
The investor and the project planning office make an assesment of the suitability of a roof (the incline, positioning, angle to the sun, static etc.) and make a preliminary plan deciding upon where and how to build the PV installation.
§ 23 ff. Decree on energy infrastructure
Unsuitable roof positioning
More than half of residential house roofs are inadequate for building PV systems due to unsuitable positioning. Roof owners wishing to install PV systems find this difficult to understand sometimes.
Check the suitability of the electric cable entry
PV systems up to 20kWp can usually be connected to the house’s existing electricity supply. Should an additional cable run over neighbouring land plots their agreement is also required. A preliminary check with the electricity distribution company is advised.
Engineer from the Electricity Distribution Company
Decree on general conditions for the supply and consumption of electricity
If for the building of PV systems cables need to run through the land plot of the neighbour, this can only be done with his acquiescence. Should the neighbour deny his agreement, it can only be replaced by the ruling of the Civil Court. These procedures can significantly delay the construction of the PV system and create additional work and costs. This is however not widely spread.
Law of Property Code, Code of Obligations, Civil Procedure Act
Check the roof ownership
The investor either needs to have a rent agreement which allows the installation of PV systems on the desired roof or be the owner of it. For small rooftop systems it is almost exclusively building owners who decide on the investment (in Slovenia the majority of inhabitants own their houses or flats; very few houses are rented). Small PV systems are also not interesting for investors that would decide to hire other roofs as the financial yield of the project is too small to cover the rent fees.
Request for the project plan conditions
The investor files to the respective electricity distribution company a request of issuing of project conditions. In the case of small PV plants this is fairly simple and has no special requirements. The distributor finaly needs to agree that the conditions have been met.
Electricity distributor’s project manager
Construction Act, Regulation on classification of construction with regard to their complexity, Rules on design documentation
Prepare a detailed plan (PZI)
A detailed plan for the implementation of the construction is a prerequisite for further construction (in case of smaller installations the scope of the detailed plan is smaller). This plan encompasses mainly:
- the obtaining of the location information
- a lead folder (with the needed approvals and textual descriptions)
- the placement of the PV installation
- the obtaining of all necessary approvals (mainly permits needed in protected areas)
- the project of building structures (static assessments)
- the project plan of electrical installations
- the lightning protection project
- the fire safety study
The Slovenian Chamber of Engineers
In order to manage the bureaucracy the investor may need to hire a project officer to prepare all the required documentation on his behalf.
Apply for a preliminary Grid Connection Permit
It is necessary to submit an application for information to the respective energy distributor for an agreement of connection to the distribution grid and in which the investor defines the planned size of the PV system. The respective Grid operator sends an engineer to check the possibility of a connection and issues his approval/disapproval. This is simply a preliminary (informative) agreement and not the actual connection agreement.
Electrical engineer who plans the number of modules as well as the numbers and types of inverters.
Energy Act (EZ-1) , General Conditions for connection to the distribution Electric system, Rules on the system operation of the electricy distribution network General Administrative Procedure Act
Unfair competition from electricity distributors
Some electricity distributors are building their own PV systems and are delaying issuing approvals and contracts to other providers or they simply give priority to certain investors.
Energy Act (EZ-1), General conditions for the supply and consumption of electricity from the electricity distribution grid
Rules for connection are not clear or uniform
Standards and procedures are not uniform; each electricity distributor has its own requirements and procedures.
General conditions for the supply and consumption of electricity from the electricity distribution grid
Appeal against a negative decision
Appeal against the decision of an electricity distributor is possible through the Energy Agency within 15 days. Standard practice for this area does not yet exist.
Energy Act (EZ-1), General Administration Procedure Law
Credit with a bank or Eco Fund
For the financing of a PV installation it is possible to obtain a credit with a commercial bank. Conditions vary from bank to bank. Alternatively one may apply for a soft loan. Every year the Slovenian Eco fund invites tenders for a limited amount of funds with which credits with a more favourable interest rate - also including PV installations of up to 50 kWp.
Commerical banks, Eco fund (public fund), Public Companies Tenders
Environmental Protection Act, Founding Act of the Environmental Fund of the Republic of Slovenia, General conditions governing the activities for promoting development in the field of environmental protection
Appeals against a decision of the Eco Fund are not permitted, the investor however has the right to enter into a legal dispute (administrative dispute).
In the case of small PV installations the investor may start a business or alternatively obtain the status of a sole trader and then register as liable for tax. In essence - if he does not register as liable for tax, this means the investment will be more expensive, due to the VAT return system and general taxation rule governing normalized costs.
District court, AjPES (Agency of the Republic of Slovenia for Public Legal Records and Related Services), Tax administration
Personal Income Tax Act, Tax Office Explanation from 2010
In the instance that the investor is an individual natural person it is accepted that the entire income from the feed-in tariff counts as a basis for income tax and furthermore cannot get the VAT return. Specific limitations and/or complications arise if the investor is a farmer and/or pensioneer (receiving a pension). Further information can be obtained at the Financial Administrative Office (FURS).
The investor finds an installer qualified to install PV systems. In terms of rooftop systems the installation is classified as building maintenance and therefore does not require any building allowances.
§ 23 a - c of the Decree on Energy Infrastructure, Construction Act
Construction Check-up
The installer/investor needs to make sure that the PV installation adheres to the following conditions:
1. the positioning needs to be in accordance with spatial planning acts,
2. the roof has to be be able to hold the mounted PV plant,
3. the entire plant has to be firesafe and protected against lightning strikes.
The project planner himself must make sure that these conditions are adhered to and sign a statement in which he confirms this and files it to the grid operator. The Energy Inspectorate may prove this if prompted to do so.
Energy Inspectorate, System Grid Operator
PV installations with a capacity of up to 1 MWp are too expensive compared to larger PV systems and therefore, are not attractive enough for investors.
After the PV system has been constructed and before the grid connection procedures begin, the distribution system operator sends his employees to check whether the installation has been installed appropriately.
Electrical engineer of the network operator
Negotiate a Grid Connection Agreement
The preliminary grid connection permit represents the basis for an agreement for grid connection. This is handled with the respective electricity distributor after the investor has constructed the PV installation. In the agreement both parties set out their mutual obligations for the future.
Electricity distributor employee
Energy Act (EZ-1), Decree on general conditions for the supply and consumption of electricity, § 11 of System operating instructions for electricity transmission network
There are not enough clear and uniform measures for connection, therefore every electricity distributor or electrical inspector imposes their own demands, which can lengthen the procedure or make it more expensive/complicated.
Energy Act (EZ-1)
Passing of the costs of grid reinforcement to the investor
Electricity distributors are entirely free to decide where the grid will be strengthened or if a PV system even requires it. Fundamentally it is often the electricity distributor’s fees that are passed on to the investor.
The investor has to present certain documents to the electricity distributor such as:
1. a confirmation that the PV installation is not in contrary to the acts in force regarding spatial planning,
2. a static assessment (analysis for the extra load on the roof),
3. an analysis of fire safety and an analysis of lightning protection
§ 23 c of the Regulation on Energy Infrastructure, Distric System Operator Rules
Take additional measurements
During the time of interim connection to the grid the PV system operator must take measurements for electric shocks, run tests on the galvanized metal objects connections, test the resistivity and other defence measurements and finally submit a written statement that the connection is in accordance with the agreement. The respective inspector supervises this process and notes if the construction has been built correctly and is meeting the safety and technical conditions for the start of a commercial operation.
Inspectorate for Transportation, Energy and Space
Part III and IV of the Decree on general conditions for the supply and consumption of electricity, § 11 of System operating instructions for electricity transmission network
Some grid operators require additional grid readings (sometimes while the plant is already operating), additional protection (frequency, impedance), and additional demands for the connection box measurement. Problems can also arise through eventual requirements for the changing of electrical cables.
Distric System Operator Rules
Appeal against the negative decision or unreasonable requirements
In the case of disagreement with the connection the resolution of arguments takes place in an authoritative district court.
Sign the Grid Connection Agreement
As the final step the investor signs a contract for access to the grid with the respective electricity distributor. This agreement allows the producer to supply the produced energy into the network and sell it on the market and/or receive support for the produced energy.
Obtain the Declaration for the production unit
The owner of the PV Installation files a request to the Energy Agency for the issuing of a Declaration for the production unit - which is a confirmation that the facility is producing electricity from a renewable energy source. This declaration is necessary for the follow-up steps. All the necessary documentation is listed on the website of the Energy Agency with detailed information.
Energy Agency administrative worker
Energy Act (EZ-1), General Administrative Procedure Act
Appeal to the responsible Ministry is possible within 15 days upon receiving a (negative) decision.
Sign into the business register (AJPES) and open an account at the Energy Agency
After the PV System operator has obtained the declaration it is necessary for him/her to register with the Slovenian Business Register (AJPES) and open a producer account at the energy agency.
AJPES (The Agency of the Republic of Slovenia for Public Legal Records and Related Services)
Regulation on issuing of the Declarations for the production units and of the Guaranties of Origin
Compete on the tender
In October each year the Energy Agency is obliged to issue a tender for the following calender year in which producers of electricity from RES are invited to apply to and compete against each other in order to receive support.
The PV producer needs to present a number of information such as the efficiency ratio, cost ratio, environmental ratio (CO2 reduction etc.), power yield, and similar factors of its installation to the Agency.
In its application the investor has to bid his price of electricity in EUR per MWh produced in the production unit and the planned annual production of the proposed project in MWh.
The offered (bid) price of electricity cannot exceed the value of the reference costs calculated via the formula provided by the Energy Agency. The price needs to be divided into a fixed and variable part.
Energy Act (EZ-1), General Administrative Procedure Act; The methodology for determining the price of electricity generating plants and reference costs of electricity generating plants.
Low Competitivness of PV technology
With the new Energy Act (EZ-1) the support scheme is now distributed in the form of a public tender where RES and CHP appliances contest against each other in terms of their efficiency, cost ratio, environmental ratio (CO2 reduction etc.) and similar factors. PV installations have a weaker competitiveness position in regard to other RES installations.
Energy Act (EZ-1), General Administrative Procedure Act , Public tender
Relative low ammount of allocated funds
The 2017 tender allocated 2 million € for the group in which PV installations may compete. This group is compromised from the "losers" of Round 1 and other more competitive RES technologies as well as cogeneration plants and certain fossil fuel installations - in essence making it HIGHLY unlikely for PV installations to win in the bidding process (info: roughly 105 PV applications applied in the 2017 tender round - representing more than half of all applicants).
The energy agency publishes a listing of all applicants (all RES technologies, date of submitted form, its kWp power output etc.). If the PV installation was successful in the bidding process (the decision rests in the hand of the commission at the Energy Agency) a final decision is issued (in 2017 it is estimated that the final decisions will be made by the end of June).
With a positive Decision from the Energy Agency the investor can sign a contract with Borzen d.o.o. - the Slovenian operator of the support scheme.
Energy Agency, Borzen d.o.o.
Energy Agency administrative worker, Borzen d.o.o. administrative worker
Maintenance of the PV installation
There are two types of maintenance; either a scheduled or an unplanned. The first one aims at preventing any malfunctions and to ensure a normal functioning of the PV installation while the second is in case of any damage or as a response to any errors on the installation. It is recommended that the PV installation is checked at least once a year.
PV installation workers
Security measures requirements
In order to ensure a reliable and stable operation of the PV installation and to reduce any feedback effects from the operation of the plant, the user has to install appropriate protective equipment. These need to be in accordance with the conditions of the transmission network on a specified site and should not impair the operation of the network (all specified in the connection agreement).
System Operator Engineer
§ 17 of the System Operation Rules for the Transmission Network of Electric Energy
No clear and uniform criteria
There are not enough clear and uniform measures so every electricity distributor or electrical inspector may impose their own demands, which can lengthen the procedure or make it more expensive.
Telemetry of the electric flow
For flow measurements of the electricity system the system operator (in accordance with the connection agreement) has to set the main, alternative and control measurement points and test sites. As a rule, the main measuring points are on the High Voltage Grid sites of transformers, the alternative measuring sites are on the Middle/Low Voltage Grid sites of transformers or on the generator terminals. The operator also needs to install an automatic synchronization device (sending data to the operator) and to participate in the voltage regulation.
§ 20 of the System Operation Rules for the Transmission Network of Electric Energy
Transmission of certificates of origin
The issued certificates of origin (by the Energy Agency) are automatically transmitted to Borzen (Centre for RES/CHP Support) in the case that the producer has signed an agreement for either feed-in or premium tariff.
Energy agency, BORZEN
Employees of both insitutions
Regulation on the support of electricity produced from renewable energy sources