VE-Law
The Renewable Energy Promotion Act
The purpose of the RE Act is to promote the production of energy using renewable energy sources in accordance with climate, environmental and socio-economic considerations. The Act includes four schemes administered by the Danish Energy Agency. Read more about the four schemes below or on the Danish Energy Agency's website.
Green Pool
Installers of renewable energy plants must pay an amount to the Green Pool corresponding to:
- DKK 313,000 per MW for onshore wind turbines
- DKK 125,000 per MW for photovoltaic systems
The funds must be paid directly from the installer to the municipality as a one-off payment after grid connection (or continuously over a number of years).
The municipality administers the Green Pool, and the funds can be used widely for local initiatives. The intention is that the funds will primarily support projects applied for by close neighbors to the renewable energy plant and green initiatives in the municipality.
Funds that are not allocated within 5 years after the payment to the Green Pool, the municipality must pay to the treasury.
VE bonus
The RE bonus scheme entitles residents of households located within 4-8 times the height of the wind turbine and/or 0-200 meters from the photovoltaic system to receive an annual payment corresponding to a portion of the system's production. The size of the payment depends partly on how much the renewable energy installation produces and partly on the market price of the electricity produced.
The RE bonus is calculated on the basis of production from 9.75 kW RE plants. For example, if a 9.75 kW renewable energy system consisting of solar cells produces 10,000 kWh/year and the electricity price is 50 øre/kWh, the renewable energy bonus is DKK 5,000/year. If the renewable energy system consists of several technologies, e.g. solar and wind, the renewable energy bonus is received from 9.75 kW of each technology.
The household (i.e. the occupants at any given time) is entitled to a renewable energy bonus from the first kWh produced by the installation and throughout the life of the installation. The RE bonus is paid tax-free to the household once a year in arrears with a deadline of May 1 and is calculated on the entire production of the installation.
Loss of value scheme
The value loss scheme entitles owners of residential buildings to receive compensation for loss of value due to the establishment of a renewable energy plant.
All residential buildings are covered by the scheme. The decisive factor is whether there is a depreciation of more than 1% of the value of the residential property as a result of the establishment of the renewable energy plant. Thus, there is no geographical limitation of who can receive compensation for loss of value.
Owners of residential properties located within six times the height of the nearest turbine and/or within 200 meters of the solar PV installation can file a claim for compensation for loss of value free of charge. Owners outside this distance must pay a fee of DKK 4,000, which is paid when filing a claim for compensation for loss of value. If the loss of value is awarded (i.e. if the loss of value is greater than 1%), the DKK 4,000 will be refunded.
Put option scheme
The sales option scheme allows owners of residential properties that are wholly or partially located within a distance of six times the turbine height from the nearest wind turbine and/or within 200 meters of the photovoltaic installation, to file a claim for a sales option. The sales option means that the installer of the RE installation must buy the neighboring property.
The sales option is valid if the residential property is awarded a loss of value according to the value loss scheme (i.e. if there is a loss of value of more than 1% of the value of the residential property).
Get answers to your questions
If you have any questions about the project, you can probably find the answer on our frequently asked questions page. If not, you are of course always welcome to contact us.