The photovoltaic systems will be connected to the electric authority’s (EAC) grid via net metering which is expected to save each participating household around 80 per cent on their electricity bills. Net metering is a special billing arrangement that provides credit to customers with solar PV systems for the retail value of the electricity their system generates. Customers’ electric meters keeps track of how much electricity is consumed by the customer and how much excess electricity is generated by the system and sent back into the electric grid. The budget which will be allocated for the grant scheme was discussed on Monday at the House finance and commerce committees.

Speaking after the meeting, head of the commerce committee, DISY’s Lefteris Christoforou, said the new plan would greatly assist the government in implementing its new energy policies. “For the first time, the government will fund 2000 homes to install photovoltaic systems,” he said. He added that net metering would reduce the cost of electricity for homes and small businesses, and it would also help the economy become more competitive. “We will strongly support any policies regarding the implementation of net metering as it will relieve the high costs of electricity and will help keep prices low for the next twenty years,” he added. Christoforou called on the government to speed up installation of PV systems so that the process is complete within two years.

According to the budget for this year, the government is responsible for installing the PV systems in 2,000 low income homes, with the cost reaching €5 million. According to Christoforou, as soon as the budget is approved by parliament, the first PV systems will be installed. He explained that the systems will be installed according to each household’s criteria, with poorer homes gaining preferential treatment. Christoforou added that small business could also take advantage of the PV systems which would enable them to cut their own costs and become more competitive. He was unable to say exactly when net metering would start as there are certain technicalities which need to be ironed-out. He said the system needs to be gradually put into use to prevent any problems on the EAC grid.

Source: Cyprus Mail