selling electricity from pv directly to third parties ... · ega w a tt pea k source: bnetza,...

Selling electricity from PV directly to third parties: opportunities and obstacles in

Germany

PV Financing Workshop:

“Suitable Business Models & Financial Schemes for PV development in Europe”

Brussels, February 19, 2016

Dr. Steffen Herz

We offer comprehensive legal support for projects in the field of renewable energy and CPH

Conceptual and strategic advice

Drafting and reviewing of contracts

Expert analysis of legal inquiries

Representation in administrative proceedings,

proceedings concerning energy industry law and

civil litigations

Our clients are plant operators, utilities, project developers, equipment manufacturers, energy traders, farms and financing banks.

Facts:

• 7 attorneys• seated in Berlin-Mitte• We speak: German,

English, Spanish, Italian, French

About us…

Dr. Steffen Herz – PV Financing Workshop - Brussels, 19.2.2016 2

Content

Facts and Figures Local Direct Selling asa Business Model

Obstacles

Legal Framework


Feed-in-Tariffs as market drivers


5

275

211

290

368

344

309

313

292

293

223

218

166 19

311

015

616

3 204

188

343

140

110

7510

610

8 123

99 97 98 101

9616

026

413

081 70

145

0

100

200

300

400

500

Jan

13Fe

b 13

Mrz

13

Apr 1

3M

ai 1

3Ju

n 13

Jul 1

3Au

g 13

Sep

13O

kt 1

3N

ov 1

3D

ez 1

3Ja

n 14

Feb

14M

rz 1

4Ap

r 14

Mai

14

Jun

14Ju

l 14

Aug

14Se

p 14

Okt

14

Nov

14

Dez

14

Jan

15Fe

b 15

Mrz

15

Apr 1

5M

ai 1

5Ju

n 15

Jul 1

5Au

g 15

Sep

15O

kt 1

5N

ov 1

5D

ez 1

5

Source: BNetzA, BSW-Solar

in MWp

Without special effects, ca. 100 MWp new PV-installations per month on average

New PV-Installations per month (2013 – 2015)

© BSW-Solar


6

0

500

1.000

1.500

2.000

2.500

3.000

3.500

2013 2014 2015

Pho

tovo

latik

-Neu

inst

alla

tion

in M

egaw

attp

eak

Source: BNetzA, BSW-Solar

1.900 MW

1.460 MW

© BSW-Solar

Political aims were missed 2 years in a row

Political Aim3.300 MW


7

0-5 kWp >5-10 kWp >10-40 kWp >40-100kWp

>100-1.000kWp >1.000 kWp

Jan - Dez 2013 88.061 505.156 534.393 301.169 710.587 1.164.443Jan - Dez 2014 66.005 311.677 257.546 191.075 461.955 610.966Jan - Dez 2015 47.789 226.194 122.352 103.069 355.914 606.649

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

Jan - Dez 2013Jan - Dez 2014Jan - Dez 2015

Source: BSW-Solar, BNetzA

in k

Wp

-27,

6%

-52,

5%

Less new installations in all segments

-27,

4%

-46,

1%

-23,

0%

-0,7

%


© BSW-Solar

Content


Obstacles

Legal Framework


Renewable Energy Source Act (RESA)

Feed-in tariffs

Technical requirements

RESA-surcharge

Energy Industry Law

General obligations for

energy suppliers

Labeling of electricity

Contract design

Reporting obligations

Grid costs

Grid operation

MeasurementDr. Steffen Herz – PV Financing Workshop - Brussels, 19.2.2016 9

Relevant Legal FrameworkCivil Code

Contract design

Law on General Terms of Service

Energy Tax Law

Tax law

Business tax

Income tax

VAT

How does it work? The three central principles of RESA

Priority access

RESA plants are granted priority access to electricity grids.

Priority purchase and transmission

of all electricity from renewable energy sources.

Guaranteed fixed minimum feed-in fees

to be paid for electricity generated in these plants using renewable energy sources

only.


Guaranteed fixed minimum feed-in fees

Guaranteed period of fixed feed-in fee payment

20 calendar years following the date of commissioning, plus the remaining year of

commissioning

Minimum feed-in fees may not be reduced by contract, the amount of fees depends

on various factors:

The type of renewable energy source

The plant’s capacity (sliding scale fees)

The year of commissioning

Statutory annual degression depends on year of commissioning

Once commissioned, a plant is granted the same feed-in fee of the commissioning year over

the full feed-in period of 20 years!


Changes in RESA 2014 concernig direct selling

New funding scheme

Instead of fixed feed-in tariffs direct marketing as a rule

Feed-in tariffs only as an exemption (existing and small plants

£ 100 kW (since 2016), 80 % of the guaranteed fee in „emergency“ situations )

From 2017 on funding granted through tenders (amount of funding determined by

tender)

Deletion of the „Solar Greenpower Privileg“

No further reduction of 2 ct/kWh on the RESA surcharge for the local direct selling of

Solar-Power

Introduction of a partial RESA surcharge on self supply


Content



Obstacles

Legal Framework

Definition of local direct selling / „TenantPower“

14

Decentral produced electricity from PV-Plants (and/or CHP-Plants, energy storage

facilities, etc.) used on site by commercial or private users of a facility

No feeding-in or transmission over the public electricity grid

No feed-in tarrif or other direct subsidies for the electricity


15

Stakeholders and legal relations

Dr. Steffen Herz – PV Financing Workshop - Brussels, 19.2.2016

Tenant 1Tenant 1

MeasuringOperator

Real Estate Owner

EnergySupplier

GridOperator

Local Energy Supplier

Tenant 2Tenant 2

Tenant 3Tenant 3

Electricitytrader

Full supply with eclectricityAgreement on the use of theroof

Direct marketingFeed-in of(surplus-)electricity(RESA)

Agreement on theoperating of the measurement

Surplus electricityover the grid

Tax and levy exemptions in Germany

Exemption for Energy tax (2,05 ct/kWh)

Energy from a renewable-energy-grid

Energy from decentralized small plants (< 2MW)

Exemption for concession fee, CHP-levy, offshore levy and grid costs

If public electricity grid is not used (e.g. when landlord delivers energy directly

to tenants with CHP or solar power or self supply)

16Dr. Steffen Herz – PV Financing Workshop - Brussels, 19.2.2016


Savings in numbers

Savings with local direct selling

Network Costs ~ 5,76 ct/kWh

Concession Fee ~ 1,66 ct/kWh

CHP-Levy 0,445 ct/kWh

§ 19 StromNEV-Levy 0,378 ct/kWh

Offshore-Levy 0,04 ct/kWh

Energy Tax 2,05 ct/kWh

Summe (ø, brutto) 10,33 ct/kWh

(Assumptions: 2016; Houshold with 3.500 kWh)

Potential for direct selling in real estate

1 - 1,5 million private or commercial apartment buildings

GdW (= German Real Estate Association): A potential of up to 3,4 Mio. apartments

for „Tenant Power“ (20 % of the flats in apartment buildings).

Other target groups:

Owners of apartments

Commercial tenants, e.g. in shopping malls

Possible providers

Landlords

Energy suppliers

Contractors

Cooperatives

…

18Dr. Steffen Herz – PV Financing Workshop - Brussels, 19.2.2016 18

Interest in the real estate industry

19

Source: „Möglichkeiten der Wohnungswirtschaftzum Einstieg in die Erzeugung und Vermarktung elektrischer Energie“, Endbericht des IWU

Is tenant power a potential business model for your company?


Yes

Rather Yes

Rather No

NoNumber of Answers: 110

Content



Obstacles

Legal Framework

Full RESA surcharge

Strict personal identity between producer and consumer as legal requirement for a

self supply and even then only a reduced RESA Surcharge (40 %) applies

Hardly ever met in direct selling or tenant power models with many participants

Therefore full RESA surcharge of 6,354 ct/kWh (2016) applies

Solution:

Reduced RESA Surcharge for local direct selling models (possibly with additional

requirement)

Politically rather not feasible


Full business tax

Reduced business tax for real estate businesses in Germany

If companies include additional economic activity, like e.g. tenant power, they

loose this privilege

Solution:

Extansion/change of the relevant tax law


Measuring concept

Direct selling and tenant power require complicated and expensive measuring

concepts

Reason: Legal requirements of the Energy Industry Law

Solution:

Change of the relevant clauses of the Energy Industry Law or implementation of

exceptions

In individual cases: agreement with the electricity grid operator


THANKS FOR THE ATTENTION!

PLEASE DO NOT HESITATE TO AKS QUESTIONS……


von Bredow Valentin HerzPartnerschaft von Rechtsanwälten mbBLittenstraße 10510179 BerlinT: +49-30-8092482-20F: [email protected]


Dr. Steffen Herz

[email protected]

mailto:[email protected]

mailto:[email protected]

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