Changes to the Legal Framework for Renewable Energy Installations
Note on This Update:
The original text is based on Law No. 4152/2013. Since then, the Greek legal framework for renewable energy has changed considerably, in particular through Laws No. 4414/2016, No. 4685/2020, No. 4964/2022 and No. 5037/2023. The text below takes account of the rules currently in force.
Current Legal Framework (June 2026)
Photovoltaic installations have developed into one of the most attractive and profitable investments in Greece – for Greek nationals and foreign investors alike. This investment opportunity is open to any interested party on Greek territory and offers significant economic advantages and return potential within the current institutional framework.
Letter of Guarantee
Upon acceptance of the final grid connection offer for installations generating electricity from renewable energy sources (RES) or from high-efficiency combined heat and power (CHP), a letter of guarantee must be submitted to the competent network operator (DEDDIE or ADMIE), in accordance with the provisions currently in force under Law No. 4685/2020 and Law No. 4964/2022.
Acceptance of the final grid connection offer must take place within two (2) months of its issue. Failure to accept it within this period automatically voids the offer by operation of law. The letter of guarantee must have a term of at least 2 years and must be extended before expiry – until trial operation of the installation begins or, where no trial operation is envisaged, until the grid connection is commissioned.
Amount of the Letter of Guarantee (Current Amounts under Law No. 4964/2022 and Ministerial Decisions):
Capacity Range | Amount per MW |
Up to 1 MW | €60,000 (pro rata for capacity under 1 MW) |
1 MW to 10 MW | €30,000 |
10 MW to 100 MW | €20,000 |
Over 100 MW | €10,000 |
Note:
The amounts above may have been adjusted by more recent ministerial decisions. A check with the competent network operator or with RAE (Regulatory Authority for Energy) is recommended.
The letter of guarantee is forfeited in favour of the special account for renewable energy (administered by DAPEEP S.A., the successor to LAGIE), unless it is extended at least three (3) working days before expiry, or if the corresponding grid connection agreement does not take effect within the validity period of the final grid connection offer.
Once the grid connection agreement takes effect, the amount of the letter of guarantee is reduced to ¼ of the original amount.
Exception:
Photovoltaic installations installed on buildings are exempt from the obligation to submit a letter of guarantee, regardless of installed capacity.
Support System – From Guaranteed Feed-in Prices to Competitive Procedures
The support system for renewable energy has changed fundamentally since 2013. Under Law No. 4414/2016 and subsequent amendments, the following applies:
- The fixed feed-in tariffs for new installations have been abolished.
- The system of operating aid agreements (ΣΛΕ) in the form of a sliding premium (Sliding Premium / Contract for Difference – CfD) has been introduced.
- Reference prices are now determined through competitive procedures (tenders) held by RAE under Law No. 4685/2020 and Law No. 4964/2022.
- Tenders are held on either a technology-specific or a technology-neutral basis; the result determines the reference price for each successful installation.
Self-Supply and Energy Offsetting (Net Metering / Virtual Net Metering):
- Net metering (energy offsetting) has been enshrined in law and expanded, allowing private individuals and businesses to offset the energy generated against their consumption.
- Virtual net metering extends this possibility to several consumption points.
- Articles 14A and 14B of Law No. 3468/2006 apply, as amended by Law No. 4964/2022 and supplementary ministerial decisions.
Special Solidarity Levy – Abolition
The special solidarity levy (rates of 34% to 42%), introduced by Law No. 4152/2013 and applicable to installations commissioned from 2013 onward, has been abolished for the vast majority of cases. These measures constituted extraordinary crisis-related arrangements of the economic crisis and no longer apply to new installations.
Transitional arrangements may apply to installations that fall under the old power purchase agreements (ΣΠΕ) and continue to operate under the old support regime. An individual legal review is required.
Production Licences and Exemptions – Law No. 4685/2020
Law No. 4685/2020 (“Modernisation of the Renewable Energy Permitting Procedure”) considerably simplified the permitting system:
- The obligation to obtain a production licence for RES installations with a capacity of up to 1 MW (previously 500 kW) has been abolished.
- The RES producer certificate has been introduced as a simplified procedure for smaller installations.
- For installations of more than 1 MW, a production licence from RAE continues to be required; the procedure has been supported by the Information System for Renewable Energy (PSAPE).
Annual Fee for Maintaining the Production Licence:
The obligation to pay an annual fee of €1,000/MW to DAPEEP (formerly LAGIE) for holders of production licences who have not yet commissioned their installation continues to apply, under the following conditions:
- For photovoltaic installations: after one (1) year from the date the production licence is issued.
- For other RES installations: after three (3) years from the date the production licence is issued.
Failure to pay the fee in time results in the automatic lapse of the production licence by operation of law.
National Target Pathway and Framework for 2030
Under the National Energy and Climate Plan (NECP) and the revised NECP 2024–2030, Greece has set ambitious targets:
- An RES share of at least 80% in electricity generation by 2030.
- Installation of photovoltaic capacity of over 13 GW by 2030.
- Expansion of energy storage (battery storage, pumped storage) as an indispensable complement to renewable energy.
Important Legal Notice
All information on these pages is provided without guarantee or liability. June 2026.
The legal framework for renewable energy in Greece is continuously evolving. For any investment decision, we recommend consulting a specialised legal or energy adviser and checking the legislation currently in force through the following bodies:
- RAE: www.rae.gr
- DAPEEP A.E.: www.dapeep.gr
- DEDDIE A.E.: www.deddie.gr
- National Printing House (Government Gazette): www.et.gr
FAQ
The law aimed to regulate investment in photovoltaics (PV) in Greece during the crisis situation at the time. It gave both Greek citizens and international investors access to the benefits and profit distributions of such installations.
Upon acceptance of a final connection offer for RES or SITHYA (combined heat and power) installations, a letter of guarantee had to be submitted to the operator.
- Deadline: acceptance of the offer within two months of issue, otherwise forfeiture.
- Term: at least two years, extendable until trial operation or commissioning.
- Amount (by rated capacity): up to 1 MW €60,000 (reduced proportionally), 1–10 MW €30,000/MW, 10–100 MW €20,000/MW, over 100 MW €10,000/MW.
- Forfeiture: the letter of guarantee was forfeited in favour of a special account if it was not extended at least three working days before expiry, or if no connection agreement was concluded.
- Reduction: upon the connection agreement taking effect, the amount of the guarantee fell to a quarter of the original amount.
- Refund: investors could recover guarantees already submitted for connection works not carried out, if they made a sworn declaration within two months of the law entering into force that they were not continuing the project.
Yes, PV installations on buildings (regardless of size) were generally exempt from the requirement to submit a letter of guarantee.
Where a connection offer already existed before the law entered into force, without an agreement having been concluded, the letter of guarantee had to be submitted within one month – in these cases the amount was only half of the standard rates.
The conclusion of connection and sale agreements (with LAGIE, the predecessor of today's ΔΑΠΕΕΠ) for PV electricity was suspended until 31 December 2013. Exempt were PV installations on buildings (in particular rooftops), provided a complete file was ready for signature by that date.
The special solidarity surcharge was set as follows, depending on the date of commissioning:
- 34% to 37%: for installations connected to the grid between 1 January 2013 and 30 June 2013 (excluding farmers and non-interconnected islands).
- 40% to 42%: for installations commissioned after 1 July 2013.
(For more on the general solidarity surcharge for PV producers, see our separate FAQ on this topic.)
Holders of production licences had to pay an annual fee of €1,000 per MW to LAGIE, beginning one year after the licence was issued (PV) or three years after approval (other RES installations); in the event of late payment, the production licence automatically lapsed.
As of June 2026. All information on these pages is provided without guarantee or liability.