Cypriots installing more solar panels

The constant increase in electricity tariffs has forced the islanders to go into economic mode.

Some have limited the use of heaters, air conditioners, and household appliances. Others have gone the other way, installing photovoltaic systems or, simply put, solar panels in their homes.

According to fresh figures from the Ministry of Energy, one in ten homes in Cyprus is equipped with a photovoltaic system. Every month, the Electricity Authority of Cyprus (EAC) receives around 1.5 thousand applications from residents of the island. At the same time, at the end of December 2023, the total number of PV systems installed by Cypriots reached 52,883. Of these:

1. 52,125 were net metering systems with a total capacity of 240 MW (net metering refers to PV systems up to 10 kW);
2. 758 net-billing systems with a total capacity of 65 MW (net-billing refers to PV systems over 10 kW for locations with higher needs, such as large houses and stores).

Interest in installing PV systems in Cyprus is expected to increase further.

As a reminder, Cyprus is an ideal location for solar energy plants due to its geographical position.

The state encourages families to participate in solar energy production through several of its initiatives. These include subsidies for the installation of photovoltaic systems and the opportunity to participate in net metering.

Net metering allows families to share their unused energy - it is not lost but rather sent to the Electricity Company of Cyprus (EAC) grid where it can be accessed by other consumers. As a result, solar panel owners receive compensation for exporting electricity, which can be used to pay off their bills.

Simply put, if your solar panel produces more energy in a given month than your family needs, the EAC buys the excess from you. An alternative way to utilize the excess energy produced is to store it in batteries, which however have their limitations in terms of cost, longevity, and capacity.

If you opt for a net metering scheme, the PV system will be connected to the EAC grid via a customer service panel and a dedicated meter. Solar panels generate power mainly during sunny daylight hours. During the day, when you are away from home and electricity use is minimal, most of the energy generated by the solar panels will be exported to the EAC grid.

If you remain at home during daylight hours, the PV system will power your electrical devices. If the energy produced by the new system is not enough to meet your needs, the rest will come from the grid. At night, when the sun is out, you will only get electricity from the grid. You have consumed more than you have produced - at the end of the two-month billing period, you pay only for the difference. Spent less - the excess will be transferred to the next billing period.

Note that Cyprus provides subsidies for the installation of photovoltaic systems. Depending on the category, applicants can expect the following state subsidies:

1. Category 1: Thermal insulation of ceilings in existing houses. Funding of 45% of the applicant's eligible costs is provided. At the same time, the maximum amount of state support cannot exceed €2,250.
2. Category 2: Thermal insulation of ceilings in existing houses in combination with the installation of a photovoltaic system. Financing for thermal insulation of the roof in the amount of 55% of the eligible costs of the applicant is provided. The maximum amount of state support cannot exceed €2,750. In turn, for the installation of a photovoltaic system, the maximum amount of state support may not exceed 1800 euros. The maximum amount of sponsorship in aggregate per application may reach €4,550.
3. Category 3: Installation of a net metering photovoltaic system in existing houses. The amount of sponsorship is 375 euros for each peak kW. At the same time, the maximum amount of state support cannot exceed €1,500. At the same time, for vulnerable categories of consumers, the amount is increased up to EUR 1000 per kW. The maximum amount of state support cannot exceed €5,000.

For applicants whose homes are located in mountainous areas, the amount of state subsidies is doubled. Applicants for increased state subsidies are determined based on the postal code provided by the Commissioner for the Development of Mountain Communities.