- What are the common legal frameworks used for rooftop PV systems in the country?
- Responsibilities:
- What kind of construction permits are required for PV rooftop construction? Are there any limitations resulting from the planning/zoning law regarding PV rooftop construction?
- What are the relevant authorities regulating operation of PV plants in your jurisdiction?
- What kind of permits are required from energy regulatory perspective?
- Do PV plants have priority rights for connection to the grid?
- How long does the permitting of PV construction take?
- How easy or difficult is it to establish long-term leases or easements?
- Do leases transfer upon sale of the property?
- What happens to PV systems when leases end? Are they removed? Transferred?
- Is the sharing of the costs and benefits of energy efficiency investments between landlord and tenants regulated by law or by customary lease agreements?
- Is there any legal obligation to build PV systems on old or new buildings?
- Are there legal or regulatory uncertainties that affect rooftop PV investments?
- Are there government subsidies available for the PV roof top installations? If so, can you briefly summarise.
jurisdiction
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Slovakia
1. What are the common legal frameworks used for rooftop PV systems in the country?
1. Ownership Options:
Rooftop PV systems in Slovakia can be owned and operated by:
Building owners.
- Tenants.
- Third-party developers.
Building owners occasionally develop the PV system and lease it to third parties.
2. Securing Roof Rights:
Third-party developers commonly secure roof access rights by establishing:
- An easement, which requires registration with the Slovak Land Registry.
- A lease on the property.
3. Electricity Sales:
If the PV system is third-party-owned:
- Electricity generated is typically sold to the building owner or its tenants via a Power Purchase Agreement (PPA) with the PV system operator.
- The operator may also sell excess electricity to a third party, often an electricity trader, necessitating an agreement with the grid operator.
- Rent or fees are paid by the PV system operator to the building owner, which can offset the PPA consideration.
4. Responsibilities:
The PV system operator typically assumes responsibility for:
- Roof repairs and maintenance.
- Overall PV system operation and management.
5. Self-Developed Systems:
When building owners develop rooftop PV systems, they generally contract third-party developers for construction and third-party suppliers for Operations & Maintenance (O&M) services. To sell electricity to a third party, an electricity sale agreement is necessary. Local distribution network operators in industrial parks often facilitate electricity sales to park tenants.
2. What kind of construction permits are required for PV rooftop construction? Are there any limitations resulting from the planning/zoning law regarding PV rooftop construction?
In general, the required construction law permits consist of a zoning permit, a building permit, a use permit (possibly also a trial operation permit) and, if necessary, an environmental impact assessment. Building authorities may make the issuance of a building permit conditional on statements by other state authorities (the civil aviation authority, the monument protection authorities and environmental protection authorities, etc.).
3. What are the relevant authorities regulating operation of PV plants in your jurisdiction?
1. Regulatory Office for Network Industries:
The main regulatory body issues permits for the supply/production of electricity.
2. Ministry of the Economy of the Slovak Republic:
This evaluates applications for energy facility construction certificates against the approved energy policy and may, in the interest of the national economy, impose obligations on various energy stakeholders, including prioritising access, connection, transmission, and distribution of electricity from renewable sources.
3. Slovak Trade Inspection:
This conducts inspections related to project operations and energy efficiency regulations.
4. Slovak Innovation and Energy Agency:
This manages the energy efficiency monitoring system and prepares materials for evaluating progress towards national energy efficiency targets and action plans.
5. Operator of the Electricity Transmission Grid (SEPS):
This is responsible for electricity transmission in Slovakia and interconnection with continental European electricity systems.
6. Operators of Regional Distribution Grids:
Key players include Západoslovenská distribučná, a.s., Stredoslovenská energetika, a.s., and Východoslovenská distribučná, a.s.
7. Building Authorities:
Relevant in the context of building permits.
These may require input from other state authorities such as civil aviation, monument protection, and environmental protection agencies for building permit issuance
8. The relevant tax authority:
In the context of electricity excise duty (if applicable)
4. What kind of permits are required from energy regulatory perspective?
Various regulatory requirements need to be met to set up rooftop PV systems.
The most important from energy regulatory perspective include:
- A licence for the supply of electricity issued by the Regulatory Office for Network Industries (and the fulfilment of notification obligation towards this authority in the case of installations with a total installed capacity up to and including 1 MW) if applicable.
- A licence for the construction of the energy installation (for electricity production from solar energy with a total installed capacity over 5 MW) issued by the Ministry of the Economy.
5. Do PV plants have priority rights for connection to the grid?
Yes, however, this is rather a theoretical right as it is not further specified and in practice it is unclear what this right means. If the producer of electricity from a renewable source meets the legal conditions for production support and does not jeopardise the security and reliability of the system operation, the producer has the right to priority for:
- connection to the distribution grid;
- transmission of electricity;
- distribution of electricity;
- supply of electricity.
6. How long does the permitting of PV construction take?
In straightforward cases, especially when zoning or building permits can be granted based on the applicant’s submitted documents, the building authority is required to make a decision within 30 days, and at the latest within 60 days (in complicated cases) from the start of the procedure. If the building authority cannot reach a decision within 60 days, it must inform the concerned party and provide the reasons for the delay.
In practice, these timeframes are often exceeded, particularly in complex cases. The legal deadlines may also be paused if an incomplete application is submitted.
Once a building permit is issued, it can be challenged by other parties within 15 days. This includes:
- The landowner where the project will be constructed.
- The owner of any structures on the land where the project is planned.
- Individuals with ownership or easement rights over adjacent land or buildings.
- Persons to whom the status of party to the proceedings derives from a special regulation (e.g. Act on EIA).
7. How easy or difficult is it to establish long-term leases or easements?
The legal procedure is generally uncomplicated, and the timeline typically hinges on the commercial negotiations between the parties when establishing the lease or easement agreement. In the case of an easement, once the easement agreement is executed, it must undergo registration with the Land Registry, a process that usually takes 15 days in the accelerated procedure and 30 days in the standard procedure.
8. Do leases transfer upon sale of the property?
In the event of a change in property ownership, it is important to note that the rights and obligations stipulated in the lease will seamlessly transfer to the new owner. If there is a change of ownership of the immovable property, only the tenant may terminate the lease for this reason, even if the contract was concluded for a fixed period of time.
9. What happens to PV systems when leases end? Are they removed? Transferred?
The resolution for the PV system’s handling on the lease’s conclusion is typically stipulated in the lease agreement.
The prevalent options typically considered are:
- Extending the lease period.
- Transferring the PV system to the customer for a nominal or residual value.
- Removing the PV system from the property, which might require additional time, depending on the specific circumstances of the case.
10. Is the sharing of the costs and benefits of energy efficiency investments between landlord and tenants regulated by law or by customary lease agreements?
There are no precise legal requirements regarding this matter. The allocation of costs and benefits hinges entirely on the mutual agreement reached by the parties.
11. Is there any legal obligation to build PV systems on old or new buildings?
At present, no such regulation has been established in the Slovak Republic. At the moment, it is up to everyone to consider whether they are interested in increasing the energy efficiency of their project.
12. Are there legal or regulatory uncertainties that affect rooftop PV investments?
Common Development Obstacles for PV Plants:
- Securing adequate grid connection capacity with the local or regional electricity grid operator;
- Fulfilling all conditions set out in the building permit (from various state authorities); and
- In projects reliant on government subsidies for economic viability, uncertainties often revolve around:
- Eligibility for a subsidy.
- The final subsidy amount granted.
13. Are there government subsidies available for the PV roof top installations? If so, can you briefly summarise.
Various subsidy support schemes are established in regulations governing electricity production and sales, primarily outlined in the Energy Act and the Supported Sources Act. These acts define the guidelines for the electricity and Renewable Energy Source industry, with details specified in subordinate legislation, such as regulations and decrees.
Furthermore, a diverse range of public subsidy funds are dedicated to financing Renewable Energy System Projects, including schemes like the Green Home Fund and Modernisation Fund. These funds are typically overseen and managed by governmental bodies such as the Ministry of the Economy, the Ministry of the Environment, or specialised agencies under governmental control.
Additionally, it's worth noting that support for renewable energy is also accessible through the Recovery and Resilience Plan. The fundamental conditions for awarding aid can be found in the Recovery and Resilience Facility Act.
It is essential to emphasise that the eligibility criteria and subsidy programmes may vary, so it is advisable to verify the most up-to-date information at the beginning of each project’s development.