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Croatia announces drastic FIT cuts

The Croatian government has drastically lowered the country’s renewable energy feed-in tariffs (FITs). The period for which they are paid, however, has been extended.

The Croatian government is moving solar support from ground-mounted to rooftop systems.

Flickr/maxually

At the beginning of June, the new tariffs saw prices for ground-mounted photovoltaic plants decreasing to just €0.15 per kilowatt hour (/kWh). Previously plants up to 10 kilowatts peak (kWp) in size had received €0.52/kWh.

Rooftop photovoltaic systems, meanwhile, saw a more gradual decrease, with tariffs now ranging from between €0.35/kWh for systems up to 10 kWp and €0.22/kWh for systems between 10 and 30 kWp.

While the tariffs have been reduced, the period for which they can be received has been increased from 12 to 14 years. Furthermore, the addition of a new clause means tariffs will be 15 percent higher, if the project uses local content and resources.

As with many European markets, like Italy, the new tariff rates indicates a shift in focus from ground-mounted plants to rooftop systems. This year, less than one megawatt (MW) has been connected to the Croatian grid. However, under the new FIT policy, there is room for up to 15 MW to be added until the end of December.

Several conferences dealing with renewable energy in Croatia have shown a growing interest from international investors in the country, which in 2013, will become the youngest member state of the European Union.

At the end of May, Germany’s Fraunhofer ISE institute announced an investment of approximately €700 million in a photovoltaic module factory. It is scheduled to be operational  by 2015. The realisation of the project will guarantee a long-term interest of the Croatian government in the development of the solar energy market.

Edited by Becky Beetz