A scheme for the installation of PV hybrid systems for residential units will be rolled out likely in September, the energy minister said Thursday, explaining that anyone can apply for it. Asked to clarify whether the scheme will be available to all or just to vulnerable groups - as media...
Read the article and chat about it below...
Energy minister announces rollout of PV hybrid system scheme
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Re: Energy minister announces rollout of PV hybrid system scheme
Good or Bad thing?
The idea behind this scheme looks simple...
For those that want a PV system but dont want/ cannot afford to pay the upfront capital cost they are being given an alternative this "hybrid" system.
Anyone can apply - no upfront costs but the capital cost of the system is recouped by the EAC collecting amounts through electric bills.
For those that qualify for subsidies these will reduce the capital payments.
Is this a good thing or bad?
For households that do not qualify for a very high level of subsidy this is unlikely to be very attactive from an economic perspective in the medium term. In fact it may actually increase electric bills for the medium term (5 years?)
We will have to wait to see the details (to be announced latter this year) but some key points have already emerged..
Factors leading to Significant increase in capital amount for system
Battery - it looks like every system under this scheme will include the installation of a battery. No details as yet as to size of battery.. but say at least a 4Kwh battery at a cost of say Euro 3,500 to be part of capital cost. As disscussed elsewhere a battery makes no economic sense for a consumer where a net metering arrangement is in place.
Self financing - The scheme is being financed by the banks / installers.. So there will be a finance charge somewhere included.
Effect on installation costs - With a surge in demand and perhaps with little competition I suggest prices for installation costs will rise and this will be reflected in the capital cost.
Rough calculation of current capital cost anfpd capital cost of hybrid system
Lets say the capial cost of a new 4kw PV system currently cost 6,000 and obtains a 1,500 grant. So net cost is 4,500.
I suggest this new "hybrid" system will almost double that cost that needs to be recouped mainly because of the battery. Say 8,500.
So unless the state is covering the vast majority of the capital cost of the system and the battery then this is unlikely to make any economic sense for a consumer.
Monthly cost of new hybrid system
The example given in the article is quite revealing ..
The minister gave a theoretical example of how electricity bills would change. Someone normally paying €300 or €400 a month would end up paying just €30 for consumption. But added to the €30 will be another line item – the charge for repayment of the PV system. By way of example, this charge might be €200, so that the total on the bill would come to €230 – still significantly lower than what a consumer might normally spend.
Euro 300 or 400 a MONTH is a lot to pay on electricity.. I suggest that most electric bills are less than that every TWO months. If the charge is for this hybrid system is 200 a month then its likely that the electric bill for the consumer will actually INCREASE.
Another way of looking at this is to ask what would a monthly repayment be for say a 8,500 loan (my estimate of the capital cost of the system) over 5 years.. At an interest rate of say 5.9% that would be 163 per month. Again probably leading to an increase in the elecric bills for that 5 year period.
I await to see the detail of this new hybrid system with some interest ... but I dont think it makes any economic sense for most, mainly because the consumer will be buying a battery that will have neligible impact on their electric bills under a net mettering arrangement.
The idea behind this scheme looks simple...
For those that want a PV system but dont want/ cannot afford to pay the upfront capital cost they are being given an alternative this "hybrid" system.
Anyone can apply - no upfront costs but the capital cost of the system is recouped by the EAC collecting amounts through electric bills.
For those that qualify for subsidies these will reduce the capital payments.
Is this a good thing or bad?
For households that do not qualify for a very high level of subsidy this is unlikely to be very attactive from an economic perspective in the medium term. In fact it may actually increase electric bills for the medium term (5 years?)
We will have to wait to see the details (to be announced latter this year) but some key points have already emerged..
Factors leading to Significant increase in capital amount for system
Battery - it looks like every system under this scheme will include the installation of a battery. No details as yet as to size of battery.. but say at least a 4Kwh battery at a cost of say Euro 3,500 to be part of capital cost. As disscussed elsewhere a battery makes no economic sense for a consumer where a net metering arrangement is in place.
Self financing - The scheme is being financed by the banks / installers.. So there will be a finance charge somewhere included.
Effect on installation costs - With a surge in demand and perhaps with little competition I suggest prices for installation costs will rise and this will be reflected in the capital cost.
Rough calculation of current capital cost anfpd capital cost of hybrid system
Lets say the capial cost of a new 4kw PV system currently cost 6,000 and obtains a 1,500 grant. So net cost is 4,500.
I suggest this new "hybrid" system will almost double that cost that needs to be recouped mainly because of the battery. Say 8,500.
So unless the state is covering the vast majority of the capital cost of the system and the battery then this is unlikely to make any economic sense for a consumer.
Monthly cost of new hybrid system
The example given in the article is quite revealing ..
The minister gave a theoretical example of how electricity bills would change. Someone normally paying €300 or €400 a month would end up paying just €30 for consumption. But added to the €30 will be another line item – the charge for repayment of the PV system. By way of example, this charge might be €200, so that the total on the bill would come to €230 – still significantly lower than what a consumer might normally spend.
Euro 300 or 400 a MONTH is a lot to pay on electricity.. I suggest that most electric bills are less than that every TWO months. If the charge is for this hybrid system is 200 a month then its likely that the electric bill for the consumer will actually INCREASE.
Another way of looking at this is to ask what would a monthly repayment be for say a 8,500 loan (my estimate of the capital cost of the system) over 5 years.. At an interest rate of say 5.9% that would be 163 per month. Again probably leading to an increase in the elecric bills for that 5 year period.
I await to see the detail of this new hybrid system with some interest ... but I dont think it makes any economic sense for most, mainly because the consumer will be buying a battery that will have neligible impact on their electric bills under a net mettering arrangement.
Re: Energy minister announces rollout of PV hybrid system scheme
Reports in Cyprus Mail suggest that the plans for the Hybrid system are dead.
The suggestion is that the new scheme will not inckude the installation of a battery and will be a straight forward 4K (?) PV system.
see
Revamped solar panel scheme set to launch in early 2024
https://cyprus-mail.com/2023/10/15/reva ... arly-2024/
The suggestion is that the new scheme will not inckude the installation of a battery and will be a straight forward 4K (?) PV system.
see
Revamped solar panel scheme set to launch in early 2024
https://cyprus-mail.com/2023/10/15/reva ... arly-2024/
Re: Energy minister announces rollout of PV hybrid system scheme
TLTR
My strictly personal view is that the EAC is unfit for what it is supposed to represent. I applied for a 4 m² installation over two years ago, nearly 3. What do I have now? A system that is working but whose output is taken directly by the EAC, without any credit. The result is that my last bill, a couple of weeks ago, came to nearly €400, which I have to pay while the electricity that my system generates is absorbed by the EAC. I've been fighting tooth and nail for over two years, trying to make sense between them, my PV system supplier and myself, while I've been losing money for, at least, months. And I see no help looming on the horizon to get me out of this situation.
Re: Energy minister announces rollout of PV hybrid system scheme
My system's been working fine for years.
Web Designer / Developer. Currently working on Paphos Life.
Living in Polemi, Cyprus with my wife and daughter.
Living in Polemi, Cyprus with my wife and daughter.
Re: Energy minister announces rollout of PV hybrid system scheme
What has happened tc Devil sounds horrendous.Like Dominic, when I had a 3 KV PV net metering system at my previous house, I just sent my surplus electricity to EAC and my resulting electricity bill was considerably reduced as a result.
Is this system still availabe now and what is the likely cost, including installation for this?
With the current and future projected cost of electricity, It seems necessary to do this.
Dee
Is this system still availabe now and what is the likely cost, including installation for this?
With the current and future projected cost of electricity, It seems necessary to do this.
Dee
Re: Energy minister announces rollout of PV hybrid system scheme
yep.. still available.. probably cost about euro 5k before subsidy for a 3KW system..
still able to do net metering arrangement.. subsidies for initial cost probably more than you got before.. and you can c/fwd surplus (rather than it getting wiped out in spring)
still able to do net metering arrangement.. subsidies for initial cost probably more than you got before.. and you can c/fwd surplus (rather than it getting wiped out in spring)
