Why go Solar

Every time your electricity bills comes in, you may begrudge paying that hefty sum.

Steep increases in electricity tariffs in the past, such as the 19.6% price jump in 2018, might have fueled your wish to find effective ways to reduce your electricity consumption.

 

The first solution that comes to mind is to put strict limits on your usage of heating, air conditioning and household appliances. Many choose this option at the expense of their comfort.

Another path to decreasing utility expenses is to install a photovoltaic (PV) system or, simply put, solar panels yielding energy. Cyprus is an ideal spot for harvesting solar power due to its geographic location where over 300 days per year are sunny.

Net metering

​Net-metering is a billing arrangement where consumers who generate electricity on their residential premises with the use of Photovoltaic System may export the excess of this to the Electric Utility Grid and use it to offset electricity imported from the Grid to the premise during the applicable billing period. In case that the consumption exceeds the production, then the consumer will be billed the difference, while in the opposite case, the production surplus is transferred to be used in the following (forthcoming) two-month billing period. The final clearing will be stated on the last bill of the financial year (February-March). Any surplus may not be transferred to the next billing year.

 

Therefore, an efficient system should be able to produce enough energy to cover your needs, without overproducing power, as this overproduction will come with an increased installation and Grid costs from the EAC.

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Subsidies for the acquisition of net metering photovoltaic systems:

The grant scheme to encourage the “Use of Renewable Energy Sources and Energy Saving for Homes” offers homeowners subsidies for the purchase and installation of PV net metering systems. It should be noted that standalone systems are not covered.

Initially, the Scheme was launched on 12/03/2019 and was due to expire on 02/09/2019. However, this June, it was further extended until 12 December 2020 or until the available funding gets used.

The scheme contemplates 2 types of grants:

 

  1. Basic subsidies for owners of existing homes

Resident homeowners can recoup €250 per every kWp of their PV system (provided it was connected to the grid after 01/10/2019). The most popular household PV systems’ capacities range between 3 to 4kWp.

 

Beyond 4kWp, no compensation is available under the Scheme, as the total subsidy amount in this category is limited to €1000.

 

 

2. Enhanced subsidies for vulnerable consumers

Vulnerable groups are eligible for increased funding amounting to €750 per every kWp of a photovoltaic system. The maximum total subsidy amount is €3750, so, again, no sponsorship is offered in excess of 5kWP for each household PV system.

 

Vulnerable consumers include:

  • recipients of welfare benefits

  • families with more than 3 dependent children provided that the annual gross family income does not exceed a fixed benchmark (i.e. € 51,258 increased by €5,126 for each child after the fourth)

  • recipients of various disability allowances.

Financial considerations

 

A 3kW system would produce approximately 5050 kWh per year, whilst a 4kW system will yield about 6700 kWh per year.

The estimated annual net savings on electricity bills will amount to approximately €1000 for a 3kWp photovoltaic net metering system, and €1350 for a 4kWp system.

 

Documentary formalities

Applications for taking part in the net metering or for requesting a grant must be supported by the requisite packages of documents (such as permanent residence certifications, recent EAC bills, title deeds, building plans and licences).

This can seem like quite a hassle, particularly, for many expats, since the full detailed descriptions of the Schemes’ conditions are officially available only in Greek.

However, in practice, applications can be done by Domenica Solar. Handled this way, the process has been straightforward and stress-free for a number of buyers.

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