ATHENS, Greece, June 12 (UPI) -- The Greek parliament has approved a solar energy incentive package of grants and tax breaks as part of the Renewable Energy Sources legislation.
The law, passed Friday, states that commercial applications can receive grants of as much as 30 percent to 55 percent of their solar system's total cost, according to a report in the Solarbuzz journal.
Small domestic systems in Greece will be eligible for a 20 percent tax deduction under the new plan, for a maximum savings of $630 dollars per system. In 2007, the deduction ceiling is set to be raised to $882, according to the report.
Greek electricity customers whose solar systems are grid-connected, meaning the excess electricity they produce is fed back into the national grid, will be paid between 50 cents and 63 cents for their contribution under the new law. This year's prices show that customers on the Greek Islands will receive a slightly higher payment than those on the mainland, the report said.
The prices will be adjusted annually for inflation and increases in electricity's retail price, but the payments are guaranteed for 20 years, according to the report.
The legislation does away with the need to secure permits to install solar energy systems of less than 150 kilowatts peak.
Solar thermal plants also got a boost from the new law, gaining feed-in tariffs that amount to about half of those received by private customers, as well as access to grants, according to the report.