NET-METERING

 

How it works:

Net-metering is a method that offset the amount of electricity imported from the grid to the premise against the electricity generated from the PV system and exported to the grid.

The netting of electricity measurements will be done by the respective supplier with whom the consumer has contracted, either bi-monthly or monthly (depending on the category of the consumer) for a period of 36 months. Any surpluses will be transferred over to the next billing period (for the next 2 months or 1 month) while any deficits will be billed normally, withing a specific billing period. The final clearing of surpluses (if and when they exist) will be done in the last bill of the 36 months (for households it is the meter regarding the February or March/ for non-households it is the last bill of March). Any surpluses beyond this time-frame will be deleted without any compensation and will not be transferred from one three-years’ time period to the next.

 

What should be taken into our consideration for the feasibility study/ estimation study re the size of the PV system?

In order to select properly the size of the PV system that will be installed the annual consumption of each premise, as well as the expected production of the PV system, which will be calculated using simulation programs for that specific area, must be taken into account. It is very important to correctly calculate the size of the PV system, in order to satisfy the real electrical needs of each premise. A PV system with greater output power than the required will not benefit from the additional production during the yearly account reconciliation that takes place during the billing time period of 36 months. On the other hand, a PV system with less output power than the required, will not lead a satisfactory reduction of the electricity bill and energy saving. Therefore, energy study must be undertaken in order to find the optimal and most efficient solution that suits the customer's consumption profile.

For premises with a single-phase electric power, a single-phase PV system with a power output of up to 4.16 kWp can be installed (or up to 5.2 kWp with storage) without any justification. For premises with a three-phase electric power, a three -phase PV system with a power output of up to 4.16 kWp or a three-phase PV system with a power output of up to 10.4kWp with justification can be installed (submission of a thorough dimensioning study justifying the power of the PV System. In any case the inverter which will be installed can be up to 1 KVA more powerful than the power of PV Panels.  

 

Where can such a system be installed and how much surface area does it need?

A net-metering PV system can be installed on flat or inclined roofs of existing premises with building permit or in the plot in which the consumer’s premises are or common border blocks. Attention must be placed on the choice of the installation area of the PV modules to avoid any shading, especially during the hours of 9 a.m. to 3 p.m.

For the installation of 1 kW PV system on inclined roof, with PV modules size 1.72 m x 1.13 m, a net surface area of about 5m2 is required. Thus a 3 – 5 kW PV system requires 15mand 25mrespectively.

For the installation of 1 kW PV system on a flat roof, with PV modules size 1.72m x 1.13 m, a net surface area of about 10m2 is required. Thus a 3 – 5 kW PV system requires 30mand 50mrespectively.

 

What is the cost of the PV system and what are the annual savings?

The energy produced in Cyprus from 1 kW PV system is estimated at 1650 kWh per year. From PV projects we have already installed in Cyprus we have seen that, in many cases, the energy produced is much higher especially to the PV Systems that have a south orientation and are clear from various obstacles likely to cause shading. Examples of energy savings of various PV System with different power sizes as per their first year of operations can been seen in the table below. In general, the payback time for such investment is 5 years, same can be reduced to 4 years if his/her is a beneficiary of the sponsorship of the Ministry RES and Energy Conservation Fund.

PV system

Indicative cost of PV system (€)

Annual energy production (kWh)

Annual energy consumption (kWh)

Electricity saving 
rate (kWh)

4kw

5,800

6,600

8,000

83%

5kw

7,250

8,250

9,000

92%

7kw

10,150

11,550

13,000

89%

10kw

14,500

16,500

18,000

92%

*All the consumers who have installed a PV System with the method Net-Metering, will pay the applicable charges to their supplier as determined by CERA (Cyprus Energy Regulatory Authority).

 

What is the process for licensing/approval and for the operation of the PV system?

We undertake the whole procedure of licensing for the PV system. Firstly, we proceed with the application of the District Administration/Municipality in order to obtain the exemption from a building permit and after obtaining this form we proceed with the Application to EAC. The Applications are submitted to EAC as Distribution System Operator (DSO). During the submission of the application, the Applicants will pay the required fee of €332.85+VAT, which reflects to the cost of handling the application by the DSO, the cost of the meter, the cost of inspection and connection of installation with the Distribution System (Term of Connection) and the Remote-Control System. In case of rejection of the application, the amount of €200+VAT is refunded. Upon receipt of the approval from the DSO, the net-metering offset contract form is signed. The applicants should obtain the approval from the DSO, to finalize the installation and the connection of the PV System within 60 working days.

 

When is someone eligible for sponsorship and how much is it?

The Renewable Energy Sources and Energy Conservation Fund (the Fund) is the main financial tool of the Republic of Cyprus to promote Renewable Energy Sources (RES) and Energy Conservation (EC). The purpose of the establishment of the Fund is to provide financial incentives in the form of state grants or subsidy for various investments or activities which promote renewable energy sources and energy saving.

Specifically, there are grants for the installation of the PV Systems in residences with the only condition that the application for the issuance of a Building Permit or Planning Permit has been submitted before 01/01/2017.

The categories that are beneficiaries of sponsorship are listed below:

-Category A1: Photovoltaics-General Category with sponsorship of €375/kw and maximum grant amount of €1500 (4kW)- 50% increase for mountainous areas.

-Category A2: Photovoltaic-Vulnerable Households with a grant of €1250/kw and a maximum grant amount of €6250 (4kW).

-Category A3: Photovoltaics For All- with a sponsorship of €250/kw and a maximum grant amount of €1000 (4kW) and, additionally, an investment repayment of €1000/kw with a maximum repayment amount of €4000.

 

RESIDENTIAL PV SYSTEMS:

Any individual, who has been a permanent resident in Cyprus and he/she is the owner of the household where the PV system will be installed or has the written consent of the owner of the residential unit, has the right to apply for a household PV system. The applicants for residential PV systems must be listed in residential tariff code. 

The net-metering contract between EAC and the consumer/producer for production/consumption is valid for 15 years. The contract is renewed at the end of the contractual period in accordance with the relevant legislative framework at the time.

In cases of residential consumers net-metering who have storage heaters, may also consider the electrical consumption of storage heaters that operate in the home based on the current tariffs, provided that the applicants declare binding that they wish to include the consumption of storage heaters in the reconciliation of electricity consumption and assuming that the electricity supplier for the storage heaters remains the same.

The electricity surpluses which will be resulted on the Electricity Bill of February or March after the netting of the imported energy from the grid and the exported energy of PV System, will be retroactively offset against the electricity consumption of the storage heaters that occurred in the previous twelve months.