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Last updated: 3 February 2002

After what was effectively a two and a half year sales vacuum created by the premature announcement of a rooftop PV subsidy programme, the Italian scheme is now underway.

The Italian Environment Ministry is providing ITL 40 billion (USD 19 million) for the year up to April 2002, to be supplemented by a 42% contribution from regional governments. This is expected to result in the installation of 2 000 systems at 75% subsidy. The subsidy is capped at ITL 15,5 million (USD 7 400) per kW for systems between 1 and 5 kW, while larger systems up to 20 kW will be eligible for up to ITL 14 million (USD 6 700) per kW. In total some 5 000 new systems could be installed by the end of 2002, although the budget for FY 2002 is not yet confirmed.

Korea is also on the verge of commencing an ambitious subsidy programme that could see 30 MW of PV installed on residential rooftops by the end of 2006. For the first 1 000 investors or two years of the five year programme, a subsidy of two-thirds of the installed costs, equivalent to KRW30 million (USD 23 000) for a typical 3 kW system, may be available. Thereafter systems will be financed via low interest loans in combination with a preferential buy-back rate of 400 KRW/kWh (0,3 USD/kWh). The Korean government, which has a target to meet 2% of the nation’s electricity requirement from renewables by 2003, anticipates that the programme can contribute towards a 60% reduction in installed prices and help cut PV generation costs in half by 2006.

Meanwhile in the UK, a second phase of the PV Domestic Field Trial (DFT) was announced in May. DFT2 will add a further GBP 3,4 million (USD 4,9 million) to the GBP 1,4 million committed under phase one which commenced in 2000. The DFT is viewed as a learning opportunity for utilities, building developers and other players. Again the funds will meet up to 100% of the system installed costs and are expected to result in a further 300 residential PV systems to add to the 166 (220 kWp) supported under the first phase. Installation of three of the nine projects supported under DFT1 has been completed, pending commissioning. Rumours abound of a follow-on 70 000 rooftop initiative, but as yet this is unconfirmed by UK government officials.

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