Subsidy (PV in households with net-metering - ”Support Scheme for PV and Biomass/ Biogas 2017)

Updated: 04.01.2019

Author: Georgios Maroulis

Under the “Support Scheme for PV and Biomass/ Biogas 2017”, grants relating to the purchase and installation of PV until 3kW are allocated.  Eligible are all natural persons whose selection will be based on income and social criteria. Successful applicants can consequently operate under a net-metering scheme (see Net-Metering). The scheme will close when the maximum capacity (1.2 MW) is covered. As of 2018, the scheme continues until the budget is covered.

Eligible technologies

PV installations are eligible (ch. 3.par. 5 “Support Scheme for PV and Biomass/ Biogas 2017”).

Solar energy

PV until 3kW (aggregate installed capacity 1.2MW) (ch. 3. par.5 “Support Scheme for PV and Biomass/ Biogas 2017”). 

Amount

The grant amounts to € 900 per kW (max. € 2,700 per installation). In aggregate 1.2MW of PV installations will be subsidised (ch. 3. par.5 “Support Scheme for PV and Biomass/ Biogas 2017”). 

Addressees

Entitled party: All natural persons belonging to vulnerable social groups (ch. 3 par.5 “Solar Energy for All 2015-2016” Scheme in conjunction with Min. Decree 218/2013). In addition, recipients of the family allowance for single parents, with a family income less than €39,000 are also eligible (ch. 3 par.5 “Support Scheme for PV and Biomass/Biogas 2017” Scheme).

Obligated party: The obligated party is the state, represented by a committee of the Ministry of Energy, Commerce, Industry and Tourism (Administrative Committee of the Special Fund for RES and Energy Efficiency) as well as the Electricity Authority of Cyprus (EAC) (ch. 3 par. 5 and ch.3 par. 9 “Support Scheme for PV and Biomass/Biogas 2017”).

Procedure

Process flow

In relation to the grant scheme the process is the following:

  • Application. Plant operators shall submit their applications to the Administrative Committee (ch. 3 par.5 “Support Scheme for PV and Biomass/ Biogas 2017”).
  • Proposal assessment: Applications are assessed according to weighted criteria (ch. 3 par.5 “Support Scheme for PV and Biomass/ Biogas 2017”).
  • Information: Applicants must be informed of the rules on the provision of grants (ch. 3 par.5 “Support Scheme for PV and Biomass/ Biogas 2017”).
  • Grid connection application: Successful applicants should apply for the grid connection of their PV installation to the regional offices of EAC, under the authority of Distribution System Operator (DSO) operator. The administrative costs concerning the application processing are borne by the applicant (€250+ VAT) (ch. 3. par. 9 “Support Scheme for PV and Biomass/ Biogas 2017”)
  • Approval of grid connection application: The DSO approves the application within 7 days. If not, the majority of the administrative costs (€200 + VAT) are returned to the applicant. With the approval, a net metering agreement is signed between the applicant and EAC for 15 years (ch.3 par. 9 “Support Scheme for PV and Biomass/ Biogas 2017”).
  • Project implementation. In order for a grant to be awarded, a given applicant is obliged to implement the investment project within 3 months- 60 working days (ch.3 par. 10 “Support Scheme for PV and Biomass/ Biogas 2017”).
  • Final control and grid connection. after the completion of the PV installation, investors should apply for the final grid connection (ch.3 par. 10 “Support Scheme for PV and Biomass/ Biogas 2017”).
  • Grant Payment. The grant awarded by the Administrative Committee is paid out to the investor after project completion and grid connection (ch. 3 par. 5 “Support Scheme for PV and Biomass/ Biogas 2017”).

Competent authority

The grant scheme is managed by the Administrative Committee of the Special Fund for RES and Energy Efficiency on behalf of the Ministry of Commerce, Industry and Tourism (ch.3 par. 5 “Support Scheme for PV and Biomass/ Biogas 2017” Scheme in conjunction with art. 9 par. 1 and par. 3 LPRES).

Distribution of costs

State

The costs of the grant scheme are partly borne by the state (art. 10 par. 1 LPRES).

Consumers

The costs of the grant scheme are partly borne by the final consumers (art. 10 par. 1a LPRES).

Distribution mechanism

The Administrative Committee of the Special Fund for RES and Energy Efficiency allocates funds from the Special Fund for RES and Energy Efficiency to eligible projects. The budget of the Special Fund is provided by the state (assigned annual budget) and mainly paid for by the consumers (through electricity bill charges that include a special tax on electricity consumption). Apart from that, sources of the Special Fund for RES and Energy Efficiency constitute all revenues from the energy products levies (e.g. fossil fuels) from a management fee imposed on all applicants to the Support schemes (art. 10 par. 1b, c LPRES).

Cyprus

Further information

  • Ρυθμιστική Αρχή Ενέργειας Κύπρου (ΡΑΕΚ) – Cyprus Energy Regulatory Authority (CERA)
  • +357 22666363
  • CERA website
  • info(at)cera.org.cy