• Renewable producers say ‘sun tax’ penalizes solar to benefit of fossil fuels •
The Supreme Court of Spain has agreed to hear arguments in a challenge to the government’s controversial regulation of self-consumption of solar energy, approved by Congress in October with the votes of the governing conservative Partido Popular (PP) and widely referred to in Spain as the “sun tax.”
The regulation provides for higher charges on self-generated electricity consumed by homeowners or businesses using PV systems and denies any compensation to the homeowners or businesses for returning electricity to the public grid for use by other consumers.
But the Supreme Court has now ruled that it will hear an appeal entered by Spain’s Association of Renewable Energy Producers (APPA), which claims that the regulation violates both Spanish and European Law by over-valuing the electricity that is self-consumed and thereby making it less competitive in the marketplace against electricity produced using non-renewable sources such as carbon, oil and gas.