NET-METERING

 

How it works:

Net-metering is a method of offsetting the measurements of the electrical energy consumed by the property from the grid with the electrical energy produced by the photovoltaic (PV) system that is fed back into the grid.

The offsetting of electricity measurements will be carried out by the respective supplier with whom the consumer has contracted, either every two months or monthly (depending on the consumer category), for a period of 36 months. Any surplus will be carried over to the next billing period (the following two-month or monthly cycle), while any deficits will be billed normally within the specific billing period. The final settlement of the surpluses (if and when they exist) will take place on the last bill of the 36-month period (for residential consumers, this is the meter reading within February or March; for non-residential consumers, it is the last March bill). Any surpluses beyond this time frame will be written off without compensation and will not be carried over from one three-year period to the next.

 

What should be considered when sizing a PV system?

To correctly determine the appropriate size of the PV system to be installed, the several factors are taken into account, including the annual electricity consumption of the property (if available), the estimated electricity production of the PV system calculated using simulation software for the specific location, and the available installation area. Proper sizing of the PV system is crucial to meet the actual needs of the property. If the PV system has a significantly higher power than required, excess electricity will be lost during the settlement process within the 36-month period, while a system with lower power than needed will not achieve sufficient savings or reductions in the electricity bill. Therefore, a tailored study is conducted for each case to determine the optimal and most efficient solution that matches the consumption profile of each customer.

In any property with a single-phase electrical installation, a single-phase PV system with a power of up to 4.16kWp (or up to 5.2kWp with storage) can be installed without justification. In any property with a three-phase electrical installation, a three-phase system with a power of up to 4.16kWp can be installed without justification, or a three-phase PV system with a power of up to 10.4kWp can be installed with a justification, which requires the submission of a detailed sizing study explaining the system’s power. In all cases, the inverter to be installed can have a power up to 1 kVA higher than that of the PV modules.

 

Where can such a system be installed and how much space is needed?

A net-metering PV system can be installed on flat inclined roofs of legally existing buildings, on the ground within the plot where the building is located, or on an adjacent plot. Special care must be taken when choosing the installation site for the PV modules to avoid shading, especially during the hours of 9 a.m. to 3 p.m.

For the installation of a 1kW PV system on an inclined roof using PV modules with dimensions 1.72m x 1.13m, a clear surface area of approximately 5m2 is required. Therefore, for the installation of a 3kW PV system, about 15 m2 is needed, and for a 5kW system, about 25 m2 is required.

For the installation of a 1kW PV system on a flat roof using PV modules with dimensions of 1.72m x 1.13m, a clear surface area of approximately 10 m2 is required. Therefore, for the installation of a 3kW PV system, about 30 m m2 is required, and for a 5kW system, about 50 m m2 is required.

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

We handle the entire licensing and approval process for the PV system. The first step is submitting an application to the relevant District Administration or Munincipality to to secure an exemption from a building permit. Once this exemption is granted, we proceed with submitting the application to the Electricity Authority of Cyprus (EAC). Applications are submitted to the EAC in its power as the Distribution System Operator (DSO). Upon application submission, applicants are required to pay a fee of €332.85 + VAT, which covers the DSO’s processing cost, the cost of the meter, the inspection and connection of the system to the distribution network (connection terms), and the remote-control system. In the event of an application rejection, €200 + VAT is refunded.

Once approval is received from the DSO, the net-metering agreement form is signed. Applicants must complete the installation inspection, and connection of the system within 60 working day from the date the approval is granted. 

 

When is someone eligible for a grant and how much is it?

The Renewable Energy Sources (RES) and Energy Conservation Fund is the main financial instrument of the Republic of Cyprus for promoting renewable energy and energy efficiency. The purpose of the Fund is to provide grants or subsidies for various investments or activities that promote the use of renewable energy sources and energy saving.

Specifically, for the installation of PV systems in residential properties, grants are available under the condition that the applicant for the issuance of a Building Permit or a Town Planning Permit for the residence was submitted before January 1, 2017.

The grant-eligible categories are outlined in detail below:

  • Category A1: Photovoltaics – General Category with a grant of €375/kW with a maximum grant amount of €1500 for systems up to 4kW. A 50% increase applies for mountainous areas.
  • Category A2: Photovoltaics – Vulnerable Households with a grant of €1250/kW with a maximum grant amount of €6250 for systems up to 4kW.
  • Category A3: Photovoltaics for All with a grant of €250kW with a maximum grant amount of 1000 for systems up to 4kW. Additionally, there is an investment repayment of €1000/kW with a maximum repayment amount of €4000.

 

RESIDENTIAL PV SYSTEMS:

Any individual who can prove permanent residence in Cyprus is eligible to apply for a residential PV system, provided they are the owner of the residential unit where the system will be installed. If the applicant is not the owner, written consent from the owner(s) of the residential unit must be submitted. Applicants must also be registered under a residential electricity tariff.

The net-metering contract for production/consumption offset between the supplier and consumer/producer in this category will be valid for 15 years. The contract may be renewed upon expiration, in accordance with the applicable legal framework in effect at the time.

In the case of consumers who have storage heaters, the net-metering arrangement can also include the electricity consumption from the storage heaters operating in the residence, based on the applicable tariffs, provided that the applicants declare their intention for this consumption to be included in the net-metering calculation and that the electricity supplier for both the general consumption and the storage heaters is the same.

The electricity surpluses that appear on the February or March bill, after offsetting the imported energy from the grid and the exported energy from the PV system, will be retrospectively offset against the electricity consumption of the storage heaters recorded over the previous twelve months.