Photovoltaics is the smart choice

2 mins read

There is keen interest in installing photovoltaics on roofs or elsewhere, and based on the government’s subsidised programme, PV systems operate by offsetting the electricity produced and consumed.

That is, each home produces energy with photovoltaics, and each owner consumes 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 rate than normal.

Each bill issued by EAC indicates, on the left side of the invoice, how much the house has consumed and how much the production was given to the EAC. The two are offset.

The advantages are, apart from financial, that a PV system can largely cover the basic needs of a house, the depreciation of money for the installation is fast (between 3-5 years), and there is a financial benefit after about 15 years.

In addition to being upgraded, you also add value to your home.

It should be emphasised that the performance of a system [technical specifications] depends on the installation on the roof or elsewhere of the house, the correct slope and orientation [south], and the percentage of sunshine that fluctuates depending on the season.

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

E.g. Input to housing:                                      1406 kWh.

Production / Export to EAC:      847 kWh

Total consumption:                     559 kWh

Last year’s corresponding consumption: 553 kWh.

The total charge is: €243.15 [ VAT included]

Without netting – [Net metering], the above consumption would cost the homeowner: €514.60.

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

If adopted as an average throughout the year at €125/ month, this equals €1500/year.

A system costs around €6,000-7,000 depending on +-3.30 KW.

With a grant for vulnerable groups [based on criteria] +-€1000/ KW, we will have +-€3,300 total.

The subsidy bears half of the cost and remains about +- €3000, borne by the owner.

With the production of 2.5 – 3 years, it covers this cost, and thereon 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 the electricity use over the last 12 months.

That determines the number of KW given to cover the average consumption of the house.

It should become a habit for architects, developers, etc., to encourage owners from the design stage or purchase to seek approval for installing photovoltaics, at least at 3 KW.

Compared to the installation costs, the costs are low, and the benefits are high.

An increase in the use of the photovoltaics system will also help harmonise the Republic of Cyprus with the European Directive for using renewables in the energy mix, which increased from the prevailing 32% [2022] to 42.50% [average of 27 EU States] by 2030.

Cyprus is still low in the ranking among European Union countries, as only +-18% of gross electricity consumption was produced from renewable energy sources in 2021, which places it 23 against its 27 partners. So, we have a long way to go.

By Antonis Loizos FRICS – Antonis Loizou & Associates Ltd. – Real Estate Appraisers, Real Estate Agents and Real Estate Consultants