During the presentation of the project "Photovoltaics for All", scheduled to take effect in early 2024, the Minister of Energy, Commerce, and Industry, Georgios Papanastasiou, provided details about the project. The project aims to enable all residential consumers to install a photovoltaic system by creating a new category "Photovoltaics for All". The project will allow owners of existing residential properties to install photovoltaic systems without initial capital requirement. The maximum power was determined as 4.16 kW (the power was estimated for the needs of an average household consumption, with total electricity consumption in the preceding year reaching approximately 6 thousand kWh).
How can a photovoltaic system reduce electricity bills?
As part of the attempt to promote the renewable energy and contribute to environmental protection, the Ministry of Energy, Commerce, and Industry of Cyprus offers several programs for the purchase and installation of photovoltaic systems, contributing to environmental preservation in doing so. Net-Metering project allows residents of the island to save on electricity bills by generating electricity using a photovoltaic system.
All permanent residents have the right to install a photovoltaic system on the roof of their residence or on their land plot. The maximum allowable power for the Net-Metering system in Cyprus is 10.4 kW. The system is directly connected to the Cyprus Electricity Authority (EAC) grid. The energy produced by photovoltaic modules is used for personal consumption by property owners where the system is installed. When solar collectors generate more energy than the owners consume, the excess energy is stored in the EAC grid and used in the following month.
It is worth noting that in cases where the consumption of electricity by owners exceeds the energy produced by the system, electricity is drawn from the EAC grid, and such consumption is included in the next electricity bill.
Details of "Photovoltaics for All" project
·Application will open in January 2024.
·Approximately 6 thousand applications will be accepted.
·The subsidy will be provided through the Renewable Energy Fund with a total budget of 30 million euros.
·Applications will be submitted through an electronic platform with a processing time of less than three months.
·Applicants can apply for the installation of the system in a private house, apartment building, or land plot.
·Applications will be accepted for small and medium-size households with a consumption of 1,1 thousand kWh over two months period.
What can applicants expect?
·Applicants will receive pre-approval for their applications and can proceed with installation without initial capital requirement.
·Applicants will benefit from energy savings from the first day of the system connection.
·Applicants will settle the balance due through monthly payments of 150 euros by included in their electricity bills.
Financing options
The budget for the "Photovoltaics for All" project, provided by the Renewable Energy and Energy Conservation Fund, amounts to 30 million euros, and is expected to cover 6 thousand applications. The total budget for all categories is set at 70 million euros, with beneficiaries divided into the following three categories:
General Category
·Financing: 375 euros per kW
·Maximum amount: 1,5 thousand euros (4 kW system)
·Financing recipient: the applicant
·Settlement of due balance: by the applicant (personal funds, bank loan, etc.)
Vulnerable groups of the population
·Financing: 100% for systems up to 5 kW
·Financing recipient: the applicant or photovoltaic installation company
·•Settlement of due balance: none
"Photovoltaics for All"
·Financing: for systems up to 4.16 kW (consumption in the previous year ≈ 6,000 kWh)
·Financing recipient: the installation company
·Settlement of due balance: 150 euros per month paid to the supplier (Cyprus Electricity Authority - EAC).
The ministry is currently working on optimizing procedures and expediting the payment system for all categories. Photovoltaic companies will be involved in the project, taking on part of the paperwork burden to assist applicants. Additionally, as part of the Project, a computerized payment system will be launched, allowing applicants to monitor financial data related to the payments for their photovoltaic system.
What will the electricity bills look like?
The Minister of Energy provided examples of the electricity bills from the Cyprus Electricity Authority (EAC) for those participating in the Project and installing systems with power of 4 kW and 3 kW.
For a household with an average consumption of 1,1 thousand kWh over a two-month period, which currently corresponds to an electricity bill of 370 euros for two months, after installing a 4kW photovoltaic system, the bill will decrease to 207 euros. This amount includes 150 euros payment for the installed system. After the balance due is repaid, over a period from 4 to 5 years, the electricity bill will further decrease to 57 euros for a two-month period.
The financing for the purchase and installation of the photovoltaic system will be directly released to the photovoltaic company, which must be registered in the relevant registry of companies participating in the Project. The funding amount will include VAT, and companies will partly handle the bureaucracy issues to assist applicants.
Finally, it is worth mentioning that the Project does not impose financial criteria for the applicants. The only criteria would be the power limitations for the system (up to 4.16 kW), estimated to cover the needs of medium and small households, and an assessment of average electricity consumption, which should be approximately 1,1 thousand kWh.
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