Page 56 - European Energy Innovation - Autumn 2014
P. 56
Autumn 2014 European Energy Innovation


Table 4 Average
consumption Case 1 Case 2
and no PV 4 410 4. 410
1 890 1 890
787.50 258.93
France (reduced VAT 10%) 6 300
592.20 194.67
Own PV electricity use (kWh) 715.65 715.65

PV electricity generation costs at 0.114 26.49

900 kWh/kWp (EUR) (North) 0.086 90.75

PV electricity generation costs at

1 200 kWh/kWp (EUR) (South)

Utility bill (EUR) at 0.159 EUR/kWh 1 001.07

Necessary selling price of PV electricity to
break even at 900 kWh/kWp (EUR/kWh)

Saving (EUR) (North)

Necessary selling price of PV electricity to
break even at 1 200 kWh/kWp (EUR/kWh)

Saving (EUR) (South)

Case2: Savings compared to European citizens. A 30% self- legal framework conditions are
household without PV system generation of solar photovoltaic needed to unlock this potential
if the PV system generates 30 electricity of the more than 210 and revitalize the European
% of the consumed electricity million European households PV market. Possible solutions
and the total production is self- would correspond to 220 TWh or could be the possibility of local
consumed (no feed-in to the about 8% of the current electricity electricity co-operatives or other
grid). Input parameter: system demand. This would require more business models, where a number
price of 1 400 EUR/kWh + the than double the current installed of users would generate the
local VAT rate, 1.5% O&M cost, capacity and thus revitalize the electricity behind one substation,
ROI of 3% and a 20-year financial European market. without feeding electricity
payback. back to the main grid. To make
As not all households have the such a vision come true, a new
As further price reductions for possibility to install a PV system design of the electricity as well
PV systems and rising electricity directly on their roof, either as the distribution of electricity
prices can be expected over the because they are tenants, live in infrastructure costs has to be
coming years, solar photovoltaic multi-family or high rise buildings, realized. As long as Europe blocks
electricity generation is getting or in other buildings which are such new developments its PV
more and more interesting for not suitable, new regulations and market will remain weak. l

Contact details: 1. The 2010 market volume of 20.9 GW includes those systems in Italy, which were reported
Arnulf Jäger-Waldau under the second “conto energia” and installed, but connected only in 2011.
Joint Research Centre
Institute for Energy and Transport 2. European Photovoltaic Industry Association, Global Market Outlook for Photovoltaics until
Renewables and Energy Efficiency Unit 2018, 2014
European Commission
Via E. Fermi 2749 3. Photovoltaic Barometer – EUROBSERVER – April 2014, ISSN 0295-5873
TP 450
I-21027 Ispra (VA) 4. “Construction” covers the labour need for large projects, whereas “installation” reflects the
Italy higher labour intensity of decentralised smaller installations.

5. PVinsight, 18 July 2014,

6. EUROSTAT, Electricity prices for domestic consumers, from 2007 onwards - bi-annual data
[nrg_pc_204]; Last update: 13-06-2014
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