Tax solar energy? Indeed, in the long run we are all dead

solar energyWhen we just lived here we found out that the guys we bought the place from hadn’t exactly renovated it according to the rules. One of the things that they didn’t do was using solar energy as the primary source for hot water, as it is mandatory here when renovating houses. After a long battle between our architect Mario and the authorities it was decided that they would waive the requirement as those big black tanks on the roof didn’t fit the character of El Guarda. Alternatively we would have proposed to use photovoltaic solar panels instead but it never came that far.

This week we heard that the Spanish government is planning to tax homes that produce their own energy through solar power and store some of it using batteries. A draft decree prepared by the Energy Ministry establishes a new fee to discourage the use of batteries or other storage systems by people who produce electricity, with solar or photovoltaic panels for instance, and who are connected to the national power grid.

Under the new rules, these self-reliant consumers will not be able to use products such as the Powerwall battery recently launched by American automotive and energy-storage company Tesla, and will additionally be penalized for the storage systems that come included with the latest generation of solar panels. Only off-grid consumers who have their own, completely independent energy-production systems will be able to use batteries without being penalized for it. Modern storage devices typically have an autonomy of two hours or so, making it difficult to be entirely self-reliant. The new fee will not affect systems without storage, which work only for instantaneous consumption. The tax will depend on the wattage that each consumer is getting from their energy provider. Prices will range between €8.90 and €15.30 per kilowatt  for wattage of less than 15 kW connected to low-voltage services. It is expected that this amount should be high enough to act as a deterrent. To further discourage self-production, the draft legislation also makes it clear that any energy surplus that individual self-producers feed back into the grid will not result in any monetary benefits.

In 2010, the Popular Party government of P.M. Rajoy raised the ire of international investors when it made cuts to subsidies for renewables as part of a review of its energy policies. A law suit by 14 photovoltaic renewable energy producers, who complained that the Spanish government had unfairly changed the rules of the game, was rejected by the Supreme Court, which ruled that the cuts did not infringe the legal security of investment and were justified by the need to trim the tariff deficit (the difference between what utilities claim it costs to produce electricity and what they may charge customers).

The Spanish government’s attitude is in contrast to other countries, such as Germany (and Holland…) which is encouraging the use of solar panels with batteries. May be we should move over there?

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About The El Guarda Posts

We are a Dutch couple - Miranda and Hans - that has after having searched for a small hotel to buy in several countries around the world we came across El Guarda and fell in love with it straight away. We would love to share our excitement for the place and its surroundings with our guests and invite you to stay with us for some days when travelling through gorgeous Andalucía.
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