Photovoltaics are the way to go

There is an evident keen interest in installing photovoltaics on roofs or elsewhere, and based on the government subsidy programme, photovoltaic systems operate by offsetting the electricity produced and consumed.

That is, each home produces energy with photovoltaics and consumes the electricity needed at that time based on the consumption needed by the house. The remaining energy is channelled to the Electricity Authority of Cyprus and credited to the owner’s account. At night when there is no energy production, the house is charged back for the energy it consumes at a lower charge than normal.

Each bill issued by the EAC indicates how much the house has consumed and how much was given to the EAC. The two are offset.

The advantages are that a PV system can largely cover the basic needs of a house, the depreciation of the money it cost is fast (between 3-5 years) and there is a financial benefit after about 15 years. You also add value to your home.

It should be emphasised that the performance of a system depends on where it is installed, on the roof or elsewhere, and the correct slope and orientation, which should be south, as well as the amount of sunshine available, depending on the season.

An example:

Net metering – 3 KW – Period 20/5/2022-21/07/2022

Introduction to housing: 1406 kWh

Production / Export to EAC: 847 kWh

Total consumption: 559 kWh

Last year’s corresponding consumption: 553 kWh

Total charge: €243,15 (VAT included)

Without net metering the above consumption would cost the homeowner €514.60.

Therefore, based on the actual invoice for the period 20/5/2022 and 21/7/2022, the difference in charge for the two months is: €514,60 – €243,15 = €271,45 or around €136/month.

The cost of a system is around €6,000-€7,000 depending for around 3,30 KW. With a grant for vulnerable groups of around €1000/ KW, we will have about €3,300 total. The subsidy covers half the cost, leaving roughly €3000, borne by the owner.

After production of 2,5-3 years, this cost is covered and from then on the owner benefits from the whole production of electricity for 15 years, with the possibility of renewing the contract with the Electricity Authority.

It should be emphasised that the amount of KW is judged and granted, together with the subsidy, depending on electricity use of the last 12 months. That determines the number of KW needed to cover the average consumption of the house.

It should become a habit for architects, developers and so on to encourage owners from the design stage to seek approval for installation of photovoltaics for at least at 3KW. Compared to the costs of the installation, the benefits are high.

An increase in the use of photovoltaics will also help harmonisation of the Republic of Cyprus with the European Directive which from 32 per cent in 2022 was increased to 42.50 per cent by 2030.

Cyprus still ranks low among European Union countries, as only around 18 per cent of gross electricity consumption was produced from renewable energy sources in 2021, which places it in position 23 out of 27 partners. So, we have a long way to go.

Antonis Loizou & Associates EPE – Real Estate Appraisers & Development Project Managers, www.aloizou.com.cy, [email protected]