The ambitious government plan in the making to be announced in early 2024
In an effort to transition to green energy at a faster pace, the Department of Energy is working on and preparing to announce a solar power generation plan that will significantly change the balance of conventional and green energy. Armed with the “Photovoltaics for All” plan, the government's goal is to reduce electricity tariffs and increase penetration rates in Renewable Energy Sources (RES). Compared to other plans of the past, the existing one does not set restrictions on the number of beneficiaries. This means that anyone interested can request the installation of photovoltaic panels on the roof of their house for self-consumption purposes. Another important innovation is that no initial capital is required from the interested party for the purchase and installation of the photovoltaic system. Also with its operation the consumer will see the electricity bill reduced by half.
The five steps
According to the calculations made within three months from the submission of an application for the project, the bureaucratic procedures and under conditions the installation of the system may have been completed. There are five steps that must be taken in order for someone to install a photovoltaic system in their home:
-Application (target to start submission 01/01/2024).
-Installation approval.< br /> – Sponsorship payment (€1000 or €1500).
– Photovoltaic installation.
According to the ΙΠ.ΕΝ the delays that existed in other projects with the connections of RES production systems seem to have decreased. Out of 1000 pending connection requests that existed have fallen below 100.
The “Photovoltaic” project is aimed at everyone, targeting small and medium-sized houses. Those interested have the possibility to choose the grant plan of €1000 and €1500. In the sponsorship of €1000 the applicant will not pay initial capital for the installation of the photovoltaic and the maximum solar energy production will be 4.5 kw. Repayment will be made in installments (€150 on each electricity bill) until the system is paid off (calculated in three years). The sponsorship of €1,500 requires the beneficiary to make a one-time payment for the installation of the system, while no limit is placed on the production of solar energy. According to the Minister of Energy, the project will be financed by the RES and Energy Saving Fund (RES – EX.E), which is supported by European funds for the green transition. In addition, funds from the Pollutant Emissions Fund may be used. “Essentially it will be a cycle of funds that will go to the consumer for green energy production and will be returned in installments to the fund”.
The benefits of this project will be visible immediately after the operation of the photovoltaics. Those who choose the €1000 sponsorship option will see their electricity bills cut in half. Specifically, for an average consumption of €370, the consumer will pay the bimonthly €30 for fixed charges plus the repayment installment of the photovoltaic system of €150. Total 180. In general, an investment in the installation of a photovoltaic system in a residence in Cyprus is estimated to be amortized in approximately 5 years taking into account the sponsorship from the RES and EX.E Fund (or in 6 years without sponsorship). Here it is worth mentioning that the lifetime of a photovoltaic system is over 20 years.
The “Photovoltaics for All” project is expected to further modernize and upgrade the electricity transmission and distribution network. As the Minister of Energy himself admits, it is outdated and in need of upgrading. The network was designed for conventional electricity generation from three points. The redesign that has begun, notes the minister, will turn it into a “smart” network by increasing the electricity capacity. In addition, it will be enhanced with appropriate equipment – metered batteries – to store energy for use mainly at night. According to Mr. Papanastasiou, the consultation on strengthening the network with batteries has already been completed and their installation is progressing in the next 2 years. However, as he admits, his upgrade will not be completed until the production of solar energy from the “Photovoltaics for All” project begins.
source: ECONOMICS/Apostolos Tomaras< /p>