This bachelor thesis examines the consequences of the multiple law reforms for establishing photovoltaic systems on properties owned by the municipality. In the past two years Denmark has seen a massive prevalence of photovoltaic systems, going from 4,176 systems with an installed capacity of 27 MW to 74,431 systems with a capacity of 407 MW in 2012. The massive prevalence has to been seen in light of the Chinese mass production of solar cells which caused the solar cell prices to drop substantially. Low prices combined with a very lucrative settling of the electrical consumption and production made a very cost-effective business for photovoltaic systems. Owners of photovoltaic systems could settle the production and consumption once a year, which gave the opportunity to store the production in the public electricity grid for later use, without paying taxes for the electricity. The prevalence of photovoltaic systems and the settlement caused a great loss of revenue from electrical taxes. Therefore the government rushed a bill through in 2012, with a new way of settling production from renewable sources of energy. The new bill sets new terms for settlement, each hour the delivered and collected electricity from and to the grid has to be calculated, which require the owners of photovoltaic systems to use the electrical energy as it is produced, otherwise the production is sold to the public electricity grid to a temporary raised support rate. The committee agreed to reconsider the support when the capacity in Denmark had reached 500 MW, to make sure the support is up to date, and limit the prevalence according to the strategy. The bill, only allows systems with an installed capacity less than 400 kW to receive the temporary support. A loophole in the new law made the limit of 400 kW inoperative, and resulted in systems above 400 kW receiving the temporary support, causing higher expenses for the government, paid by the electrical consumers through public service obligations. Furthermore it caused larger prevalence than expected.
In March 2013, the government introduced a new bill into the committee, to avoid systems above 400 kW and to reduce the expenses for the support. The new bill proposed only systems installed on roofs could receive the temporary support. This would not have any consequences for establishing photovoltaic systems in a municipality, because these communities already want to place the systems on roofs. During the reading of the bill the government discovered the capacity had already reached the 500 MW goals, and due to this fact, they further restricted the temporary support in June 2013 to households not exceeding a capacity of 6 kW. To be able to use the electrical energy produced by photovoltaic systems, the system has to be owned 100 % by the user, and has to be connected to the consumer installation, otherwise the entire production is sold to the public electricity supply. When a municipality deals with electrical production, the production system has to be in a separate company with limited liability according to the law of electricity supply. This makes it impossible for the municipalities to use the production from photovoltaic systems since the owner and user is not the same legal unit. The original intention for the law of electricity supply was to handle the liberalization of the electrical market, and define that electrical production in municipalities has to take place in a separate company. This is to avoid the production to be financed by the taxpayers’ money. While everyone except the municipalities have been able to establish photovoltaic systems, the municipalities have been waiting to be granted an exemption from the requirements of legal separation. Some municipalities have not been aware of the requirement, and have already established photovoltaic systems; these systems economy is dependent of being granted an exemption. Energistyrelsen is responsible to developing guidelines for the exemption in a departmental order. Only 20 MW is allowed the exemption.
Receiving yearly based settling and temporary raised support will no longer be possible, however the municipalities are still waiting for the guidelines to waive the rule. If the municipalities succeed to waive the rule, it will still be attractive to the municipalities to establish photovoltaic systems, because of the high taxes on electricity bought. The systems will be established under particular circumstances, which mean the size of the systems is reduced considerable. They have to be able to use the production in the same hour it is produced, and only rarely sell electricity to the electricity grid to make a cost-effective business.