Which are the constraints to the photovoltaic grid-parity in the main European markets?

• The photovoltaic penetration in the distribution grids is subject to technical limits.
• The distribution-grid upgrading with high level of PV penetration increases the tariff.
• The fixed costs in the tariff must be included in the analysis of PV grid parity.
• The PV grid parity is reality in Germany for commercial and residential users.
• The PV grid parity is impossible in Italy for apartment-blocks with the current tariff.

A new concept of Photovoltaic (PV) grid-parity is presented for three typical case studies in Europe by including the distribution-network limits and the fixed costs of the electricity bills. Real cases are described for residential/tertiary sector loads: the PV penetration results, achieved without investments in the distribution upgrading, are presented through the ratio of the admissible PV energy ratio which can be close to 30% of the total consumption for residential users and 45% for tertiary-users. The future approach of distribution limits certainly will increase the electricity bills which have been analysed here in the current situation: in Germany the fixed costs are negligible, whereas in Italy the common loads of apartment-blocks are charged by the cost of the available power. The grid-parity problem is analysed by the net present value which provides the cost effectiveness or not of the PV installation. The results are obtained by the interest rates of 3–6% in Germany and 4–10% in Italy. The grid-parity for dwelling houses and tertiary-sector users is reached in Germany and Central/Southern Italy; it is achieved in Germany for the users in apartment-blocks, while it is unrealistic to be reached in Italy with the current tariff situation.