A decree law passed in 2002 paved the way for establishing prices and premiums for purchasing electricity from qualified producers. Qualified producers are those that produce electricity from renewable energy sources, or in facilities with higher than average efficiency for combined heat and power.
Under the scheme producers can choose to receive either fixed feed-in tariffs or premium feed-in tariffs from the network operators. A Purchase Agreement is concluded, valid for 10 years. According to the Law on Energy, the uniform annual prices and premiums are set at least once a year. Feed-in tariffs and premiums are differentiated in terms of both technology and size. In 2006, the size differentiation was removed for solar energy, and increased the tariff and premium for biomass. Producers can also choose to adhere to a double tariff system, whereby either the tariff or premium amount varies according to season and time of day. This system is advantageous to producers that can adapt their production.
As of January 2012, new rates for the feed-in premium allocated to renewable power producers on top of the electricity price for technologies have been adjusted. Premiums for all technologies and for plants smaller than 5 MW were increased, except for biomass and CHP. Tariffs for solar PV projects greater than 5 MW were reduced and increased for biomass and CHP.