Local governance changes to encourage society to install renewable energy to self-consumption

By project SHREC

Published on 28 June 2022

Spain

País Vasco

Arrasate/Mondragón

About this good practice

Local authorities can adapt its own legislation through local ordinances, which are mostly related to taxes, payments, and permissions. In 2007 an ordinance related to the installation of renewable energy systems was developed and at that time it was not allowed the installation of FV systems in some type of buildings.
However, currently, the legal framework has change considerably. The need to decarbonize the economy and increase the use of renewable energy is very important, so local authorities decided to adapt its rules to the new scenery.
To start with these changes two local rules were analysed and reformulated: the first one was related to the impediment of installing photovoltaic solar panels in rural houses, and the new rule, apart from eliminating this impediment was adapted to the current needs; the second rule has modified some of the tax burdens, reducing those who are directly related to the dwellings who has installed FV panels.
With this last change it is expected to influence the payback on the investment, as well as to increase the number of installations. Furthermore, all the owners who install FV panels on their roofs will be the beneficiaries of the practice, and even more, some that before this good practice were not able to install FV currently they are able to do so.

Resources needed

The resources needed to change these local rules have been internal human resources.
However, there will be a local budget reduction because as a consecuence of changing the local tax collection is expected to be lower.

Evidence of success

Before this good practice was implemented, there was no option to install FV systems in some of the buildings around the city. With this change, and the other that have been introduced, the objective is to encourage citizens to install more FV systems on their dwellings. The impact of the practice will be measurable comparing the number of new installations, paying special attention in those emplaced on the buildings that previously was forbidden.

Potential for learning or transfer

This practice could be replicated by those policy makers who can design their own policy rules, because the main objective is to facilitate a legal framework and create favourable conditions to the installation of new photovoltaic systems.
To do so it is necessary to analyse what the current situation is and try to develop new legal requirements to encourage citizens to jump to sustainable energy self-consumption.