VIRTUAL NET-METERING

 

Virtual Net-Metering is defined as the method by which the difference is calculated between the energy between the energy imported from the grid to cover the needs of a property and the electricity exported to the distribution grid from a PV system installed in a different location from the property.

This category, generally refers to the installation of photovoltaic systems connected to the distribution grid for the purpose of covering the own energy needs of residential units, agricultural premises/activities, and wineries.

 

Who is eligible for the Virtual Net-Metering category? 

Eligible beneficiaries for this category may be:

• Residential consumers: Natural persons who can prove permanent residence in areas of the Republic of Cyprus and are the owners of the residential unit that will be served by the PV system, or, in cases where they are not the owners, have obtained the consent of the owner of the residential unit.
• Professional farmers: Eligible applicants may include natural persons, legal entities, and cooperatives engaged in full-time agricultural activity and registered in Register A – Farmers and Agricultural Holdings, under specific categories and meeting certain conditions.
• Existing and new winemaking enterprises that produce or market products listed in Part II of Annex VII of Regulation (EU) 1308/2013, as well as producer organizations, associations of two or more producers, or interprofessional organizations, are also eligible, provided they fall within specific categories and meet the relevant criteria.

 

Where can Virtual Net-Metering PV systems be installed?

In this category, PV systems are installed at a different location from the property they are intended to serve.

Installation of Virtual Net-Metering PV systems may take place:

• On the roof of legally constructed buildings, in accordance with the conditions set by the relevant Ministerial Decree issued by the Ministry of Interior.
• On the ground within a plot where a legally constructed building exists. It is noted that for the installation of a PV system on the ground in a plot with an existing legal structured, a building permit is required if the surface area of the PV modules exceed twenty square meters (20 m²).
• On land within a plot, without any erected structure, in an area where the installation of a photovoltaic (PV) system is permitted and provided that the necessary permits (building permit and/or planning permit for the installation of the PV system).

A separate meter must be installed for each PV system corresponding to the electricity account of the premises it will serve. The applicant for each PV system must be the person in whose name the electricity bill of the served premises is issued. Each applicant must also obtain the consent of the owner(s) of the plot where the PV system will be installed.

 

What is the maximum power power that can be installed?

The maximum power of each PV system that may be installed under this category is:

• For residential consumers, up to 10.4 kWp per electricity consumption account
• For professional farmers and winemaking enterprises, up to 100 kWp per electricity consumption account

Additionally, the maximum permitted power of each PV system is subject to limitations based on the annual electricity consumption of the premises it will serve. 

 

Wat is the method of electricity netting?

The electricity netting will be carried out by the electricity supplier with whom the consumer has contracted, either on a bimonthly or monthly basis (depending on the consumer category), for a period of exactly 36 months, in accordance with the procedure described in the Net-Metering Category. The electricity generated by a photovoltaic system will be offset against the imported electricity from the grid (consumption/account) of a single residential unit or premises, which is located at a different site from the photovoltaic system.

 

What is the duration of the contract with the supplier?

The beneficiary will sign a Virtual Net-Metering Production/Consumption Agreement with their respective electricity supplier for a duration of 15 years for residential consumers and 10 years for professional farmers and winemaking businesses. The contract may be renewed upon expiration, in accordance with the applicable legal framework at the time.

 

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

We undertake the entire licensing/approval process for PV systems installed on the roofs of legally existing premises and on ground areas up to 20 m² where a legally existing building is present. The process begins with submitting an application to the respective District Administration Office or Municipality to obtain an exemption from a building permit. Once this exemption document is secured, we proceed with the application to the Electricity Authority of Cyprus (EAC), acting as the Distribution System Operator (DSO). It is understood that for PV systems over 50 kWp, a General License from the Cyprus Energy Regulatory Authority (CERA) must first obtained in order to submit the application to the EAC. Upon receiving approval from the DSO, the connection terms are issued. Once these are paid by the client, the net metering contract form is signed, and the project can move forward to implementation.

 

Will there be charges for this category?

All consumers who operate a virtual net metering system with PV systems, will be required to pay their supplier the applicable charges as determined by the Cyprus Energy Regulatory Authority (CERA). It is noted that, according to a decision by CERA, the current regulated charges apply to the electricity imported from the grid under support schemes related to the production of electricity from renewable energy sources (RES) for self-consumption.

Therefore, in this category, since all the energy produced by the PV system will be fed into the grid without any portion remaining within the consumer’s premises to cover the real-time consumption of the unit, the cost from the regulated charges will be higher.

 

Can electricity consumption from storage heaters be offset?

For consumers who use storage heaters, it is clarified that the offsetting can be done in the same way as described in the net-metering category.

Additionally, in this category, PV systems can be installed solely to cover the electricity consumption from storage heaters operating in residential homes.