The Spanish government has confirmed that the country has reduced the feed in tariff, which will be paid for new solar power projects. The electricity price for ground mounted equipment will be reduced by 45%, while the electricity price for residential roof system will be reduced by 5%. All existing units will receive a 25 year quotation at the time of connection.

 

Prime Minister Jose Luis Rodriguez Zapatero made these changes to limit electricity prices and improve industrial competitiveness and consumer spending. Since 2005, the power supply cost of Spanish households has exceeded the income of consumers every year. It is expected that the cumulative deficit will reach 14.6 billion euros ($20 billion) by the end of 2010. Renewable energy subsidies account for a large part of the tariff deficit, and the government now has a legal obligation to eliminate them by 2013.

 

Although the existing generating units will continue to operate at established rates for 25 years, the government may limit the number of hours that the existing generating units earn above the market price.

 

The Ministry's press release shows that the reduction of new power plants will reduce the cost of Spain's power system by about 600 million euros in the next three years.