Renewable Energy Support Schemes

Promotion of solar PV as a renewable energy and implementing energy policies has been a priority for more than 80 countries of the world. Renewable energy contributed 22.6% of gross electricity generation in Germany in 2012 and it is targeting to achieve 80% share of renewable energy in the total electricity supply by 2050 (Lutkenhorst and Pegels, 2014). A number of renewable energy programmes in Germany such as renewable energies loan programme (KFW), federal energy research programme, solar PV storage loan programme, innovation alliance PV has been launched to support solar energy and renewable energy installation (Lutkenhorst and Pegels, 2014).

Growth of PV market in Australia has been supported by programmes such as Australian Government’s Solar Homes and Communities Plan (SHCP), Renewable Energy Target (RET) mechanisms, National Solar Schools Program (NSSP) and feed-in-tariffs (Moosavian et al., 2013). Solar energy market in China, the leading renewable energy investor in 2009, is supported by central government with various initiatives such as ‘Golden Roof’ (Moosavian et a., 2013).

Production of renewable energy has been supported by various schemes across the world. Market actor is obliged in quota based support to provide a certain share of electricity from renewable energy sources (Held et al , 2014; Sayigh, 2012). Renewable energy producers are remunerated for the energy production in tender systems. Customer producer can take advantage of net metering when they are connected to central grid and provided a meter which can turn backward (Sayigh, 2012; Sunlighelectric, 2013). If energy is produced more than consumption, consumer gets remuneration.

Producer can sell all the renewable energy produced to grid operator in a fixed set price with feed-in-tariff schemes and Government can provide tax avoidance, tax write-off, capital grants and soft loans services for the development of renewable energy (Sayigh, 2012). In USA, the energy policy act of 2005 has provision of providing tax credit for residential energy property (, n.d.). Support mechanisms can be generation based or capacity based and government can support the solar industry either by total remuneration or partial payment (Held et al., 2014). Feed-in-tariff is total price coverage scheme whereas quota based supports get partial financial coverage (Held et al., 2014).

References (n.d.) Residential Renewable Energy Tax Credit. [Online] Available at [Accessed on 11 August 2015].

Held, A., Ragwitz, M., Gephart, M., Visser, E.D., Klessmann, C. (2014) Design Futures of Support Schemes for Renewable Electricity. [Online] Available at www. [Accessed on 11 August 2015].

Lutkenhorst, W. and Pegels , A. (2014) Germany’s Green Industrial Policy Stable Policies- Turbulent Markets : The Costs and Benefits of Promoting Solar PV and Wind Energy. [Online] Available at [Accessed on 21 August 2015]

Moosavian, S.M., Rahim, N.A., Selvaaj, J. and Solangi, K.H. (2013) Energy Policy to Promote Photovoltaic Generation. Renewable and Sustainable Energy Reviews 25, pp. 44-58.

Sayigh, A. (2012) Comprehensive Renewable Energy: Photovoltaic Solar Energy. Vol 1 , Elesevier, Italy.


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