Solar & Wind ExchangeVaasa Energy Week , Vaasa, Finland22 March 2017

Solar power in FinlandFinSolar Project Director & Researcher, M. Sc. (Eng.) Karoliina Auvinen

Sun shines in Finland

• Cool climate is favorable for solar energy production • Finnish solar energy industry: approx. 100 companies!

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Grid connected solar PV capacity in Finland - market growth over 100 %/y during 2014-2016

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2016

20 MW

2015

8-10 MW

2014

4 MW

Source: http://www.ren21.net/wp-content/uploads/2016/10/REN21_GSR2016_KeyFindings_en_10.pdf

Estimated growth in 2016: +70 GW

Global 300 000 MW 15 000 times more than Finland’s 20 MW solar PV capacity

Source: http://www.ren21.net/wp-content/uploads/2016/10/REN21_GSR2016_KeyFindings_en_10.pdf

Germany’s 40 000 MW is 2 000 times more than Finland’s 20 MW solar PV capacity

Solar PV system prices in 2016 – price reduction 5-10% from 2014-2015Size, kW Prices €/kWp (VAT 0%)

Grid connected > 1000 kW (1 MW) 1 200 – 1 000 €/kWp

Grid connected > 250 kW rooftop 1 300 – 950 €/kWpGrid connected 10 – 250 kW rooftop 1 350 – 1 050 €/kWp

Grid connected < 10 kW 2 000 – 1 300 €/kWp

Offgrid > 1 kW PV + battery 3 500 €/kWp

Offgrid < 1 kW PV + battery 5 000 €/kWp

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7Source: http://www.finsolar.net/aurinkoenergian-hankintaohjeita/aurinkosahkon-hinnat-ja-kannattavuus/

Solar PV system LCOE prices, c/kWh (30 year lifetime)

System price

 LCOE price

(VAT 0%)

Example application

Subsidies & taxes

Application LCOE price

Cheapest 950 €/kWp 4,2 c/kWh

Rooftop 900 kW PV system in industrial site

25 % investment grant, VAT

0%

3,3 c/kWh

Most expensive

2000 €/kWp 8,6 c/kWh

Small 3 kW rooftop in house

cooperative

No subsidies, VAT 24%

11 c/kWh

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Electricity purchase prices c/kWhCompare: Solar PV

LCOE 11 - 3,3 c/kWh

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0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 20

0.010.020.030.040.050.060.070.080.090.1

0.110.120.130.140.150.160.170.180.190.2

0.210.220.230.240.25

9% ROI

7% ROI

5% ROI

3% ROI

Investment cost of solar PV system eur/Wp (VAT 0%)

Pric

e of

reta

il el

ectri

city

[e/k

Wh]

(VA

T 0%

)

Price of electricity in investigated investment cases in 2014 by FinSolar project

Return on investment (ROI) 1-8%

Price of PV system eur/Wp without investment aid

Price of PV system eur/Wp

with 30% investment aid

Solar PV & Finnish energy policy• Solar electricity self-consumption exempted from grid fees

and electricity taxes up to 100 kVA system size or 800 MWh/year production limit

• 25-40% investment grants available for municipalities and companies - housing sector & state properties are excluded

• Single houses can get household tax deduction from solar system installation work (approx. 5-10% from the whole investment price)

• House co-operatives are excluded from all incentives! • Government doesn’t have solar energy targets, strong focus

in bio energy• Solar PV is excluded from the current feed-in tariff system

• Next support scheme based on auctioning - solar PV is not likely to be competitive with wind power

Karoliina Auvinen

Policy challenge: Solar PV in energy communities• Current legislation doesn’t

aknowledge house co-operative grids

• FinSolar experiment project• Piloting virtual metering and

micro-grid solutions• Goal to unlock the solar PV

market for the house co-operatives: 2 million people live in 80 000 apartment buildings in Finland

Karoliina Auvinen

Photo: Janne Käpylehto

Distribution grid

Net metering service not legal now?

Kiinteistösähkö

Sähköverkko

Oman sopimuksen

asukkaat

Aurinko-sopimuksen

asukkaat

Aurinkosähkö-tuotanto

Lisämit tari

As.OynAurinkoenergia ”osuuskunta”

Sähkö-pää-keskus

Challenge: Now every apartment meter calculates taxes & grid fees

Solution: taxes & grid fees for solar calculated at the grid connection point by net metering service provider

Karoliina Auvinen

Grid challenge: Will solar PV owners save grid fees in the future?Case calculation: If energy based grid fees change to power-based or fixed tariffs, the payback time of municipality’s solar PV investment changes from 13 to 23 years

Comparison of PV capacity and policies between Finland, Sweden and Denmark

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Support policies Installed capacity

Finland Investment grant, no grid fees and taxes up to 100 kVA or 800 MWh

Approx. 20 MW (2016)

Denmark Premium tariffs, net-metering 791 MW (2015)Sweden Investment grants, subsidy

for residential battery storage costs, tax returns

85 MW (2015)

Sources: https://cleantechnica.com/2016/11/22/sweden-will-offer-60-subsidy-residential-battery-storage-costs /, https://www.worldenergy.org/data/resources/region/europe/solar/, http://www.res-legal.eu/search-by-country/denmark/single/s/res-e/t/promotion/aid/premium-tariff-law-on-the-promotion-of-renewable-energy/lastp/96/

Solar energy is already feasible in Finland, but market growth would improve with support policies

Thank you! More information:www.finsolar.netwww.smartenergytransition.fi

Contact:Karoliina Auvinenkaroliina.auvinen@aalto.fi+358 50 462 4727Aalto University, Helsinki