Recent PV Subsidy Policies and News You Need to Know

New subsidy policy in France in 2023

Bonus for installing solar panels increased in 2023.

In addition to its financial and environmental benefits, solar energy has become more accessible to private individuals thanks to falling installation costs. According to Greenpeace, the average price of a residential solar system has fallen from 12,000 euros in 2010 to around 7,500 euros in 2022.

What’s more, French people wishing to install solar panels can take advantage of a range of attractive financial incentives. One of these is the Energy Transition Tax Credit (CITE). Under this scheme, part of the cost of installing solar panels can be deducted from income tax, reducing the total cost of the investment. In addition to the CITE, there are local grants, such as those from the Agence Nationale de l’Habitat (ANAH), which provide financial support for energy renovation projects, including the installation of solar panels.

The government can also pay a self-consumption bonus. This is available subject to certain conditions, and ranges from €110 to €500 per kWp depending on the size of the photovoltaic installation. Prime Minister Elisabeth Borne promised last September that the scheme would be extended to 2023. Households installing photovoltaic panels in 2023 will be eligible for a premium of €1,290 for a 3 kWp installation, and €1,920 for a 6 kWp installation. Individuals can also benefit from a zero-rate eco-loan (PTZ). This can be used to finance part of their solar project. The amount can range from €7,000 to €30,000.

New subsidy policy in Italy in 2023

In 2023 there are two types of incentives for the installation of photovoltaic panels.

The first is the IRPEF deduction 50% of the expenses incurred for the purchase and installation of the PV system.

The second is the 90% superbonus (in 2023 the rate is reduced from 110% to 90%) for photovoltaic systems and storage batteries, which are, however, trailed interventions. From 2023, access is also restricted on the basis of household income, which must be below 15,000 euro, and is only allowed for dwellings used as first homes.

The incentives stipulated that anyone producing electricity by installing a photovoltaic system that harnesses the sun’s energy, and thus produces energy from a renewable and non-polluting source, could access state funding for the remuneration of the kilowatt hours (KWh) produced at a price above the market price, for a period of twenty years.

In this way, those who have installed a system with photovoltaic panels and produce electricity for their own consumption (or even a surplus), will no longer have to pay electricity bills to the energy distribution company (subject to fixed costs per year of a few dozen euros). In fact, for a period of twenty years, it will collect a contribution (called ‘state financial incentive’) directly proportional to the amount of energy produced.

The extra energy produced by a grid-connected photovoltaic system is then sold to the energy distribution company.

New subsidy policy in Sweden in 2023

As of 1 January 2021, a new subsidy for solar cells, a so-called green deduction applied. The solar cell grant is given in the form of a tax deduction of 20% (previously 15%) of material and labour costs. You can receive a maximum of SEK 50 000 per person per year from the new investment subsidy for solar panels.

In order to apply the green tax deduction to a turnkey contract, a standard rate for material and labour costs is used. According to the standard, 97 per cent of the total cost is counted as material and labour costs. The green tax deduction is therefore 19.4 per cent of the total cost of solar cells (0.2*0.97 = 0.194).

NOTE! The green tax deduction for solar cells was increased from 15% to 20% on 1 January 2023.

To summarize, policy development in European countries will enhance PV market terminal demand. According to InfoLink, PV module demand in the European market (including the UK)  ranged between 92 and 114 GW in 2023. Although the short term is hampered by issues such as excess inventory and delayed grid connection progress due to a lack of work, it is expected that in the long run, in line with favorable policies and the optimization of supply chain technologies and costs, module demand in the European market will reach 141-160 GW by 2027, with an annualised compound growth rate (CAGR) of about 7%-8.9%, indicating that the European PV market’s growth potential is still present.

PV Price Trends

PV cell prices under pressure to fall, PV glass prices ushered in a rebound.

PV Cell

This week’s mainstream transaction price of PV cells in China continued to fall slowly, M10 cell mainstream transaction price of 0.73 yuan (0.095 euros) / W, G12 cell mainstream transaction price of 0.72 yuan (0.094 euros) / W, M10 monocrystalline TOPCon battery people’s price of 0.78 yuan (0.10 euros) / W.

From the supply side, the cell link still maintains full production, and the overall supply is more adequate; from the demand side, the module cost pressure transfer to the cell link, with part of the specialized module enterprises maintaining production cuts and reduced procurement demand for batteries; part of the battery enterprise forced to ship pressure, low price to keep a single, but the PV module enterprise price pressure mentality is strong, and it is expected that in the short term.

From the supply side, PV module start mainly by the first-line factory support, part of the specialised PV module enterprises continue to reduce production to the upstream pressure; from the demand side, the terminal demand increment is still less than expected, the PV module market competition is fierce, the integration module enterprises continue to maintain the low price advantage, specialised module enterprises intend to raise, but the price rise support is insufficient, is expected that in the short term the PV module price is still mainly to remain stable.

In Chinese market, auxiliary materials, this week, glass prices rose sharply, 3.2mm thickness of glass mainstream price of 28 yuan (3.61 euros) / ㎡, 2.0mm thickness of glass mainstream price of 20 yuan (2.58 euros) / ㎡, respectively, rose 7.69%, 11.11%. Recently, the photovoltaic glass no new capacity to put, the market turnover situation is still good, but the price of soda ash remains high, glass companies are forced by cost pressures, the trend of upward adjustment.