Denmark to expand solar scheme

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Danish climate, energy and building minister Martin Lidegaard has called for the expansion of Denmark’s net-metering scheme, but a cut to the country’s feed-in tariff.

Presented to the Folketing, Denmark’s parliament, Lidegaard’s draft bill has laid out plans to abolish the current ceiling of 6kW for solar power plants in order to encourage larger developments. 

The proposal also includes cutting financial incentives by more than 50%. Lidegaard has asked that a temporary rate of DKK 1.3 (US$0.23) per kWh be offered for all solar installations as well as other small renewable energy plants. This rate will be gradually phased out to fall to DKK 0.60 (US$0.102) per kWh after five years.

With module prices having fallen from DKK 30,000 (US$5,113) per kW in early 2011 to approximately DKK 18,000 (US$3,068) per kW in September 2012, which the government believes reduces the need for support. 

Domestic PV installations in Denmark have grown exponentially in 2012 reaching 223MW this month from just 17.5MW at the end of last year.

Expected to come into force in 2015, the minister intends to reassess the level of support annually from 2018 onwards.

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