Opportunities for fostering PV diffusion in Lithuania: net metering case

Abstract: In this thesis a renewable energy policy evaluation is conducted to find areas for improvement of the newly adopted net metering scheme’s regulations to foster PV diffusion in Lithuania. Fears of the previous failure of the feed in tariff scheme lead to a creation of policy full of safeguards, unequitable fees, and administrative barriers. Based on quantitative and qualitative methods four criteria of the support mechanism were evaluated. The analysis revealed that the policy is neither effective, nor efficient, and it has a lack of equity and institutional feasibility. The results revealed 12 areas for improvement which were grouped by the logic of political change, reciprocal relations and interconnectivity. The results showed that the opportunities to further PV diffusion rely on ruling political elite, which can initiate improvements of the net metering regulations in Lithuania by (1) developing the (Renewable) Energy Strategy of Lithuania, implementing (2) regulatory changes, and (3) institutional reform. It would not only (1) prevent previous failures of support mechanisms, but would also ensure (2) a stable and effective PV diffusion, and (3) a fair and clear regulatory environment. Suggested immediate actions would reduce return of investment periods for investors in solar energy, reduce waiting periods of the administrative process from 3-5 months to 3-5 weeks, and would considerably reduce initial investment costs, improve aggregation of data and reallocate human resources.