Loan and Financing SchemesOne of the greatest assets offered by the state is the subsidy of 55% on the cost of the system (before VAT is added) in the case of private individuals and non-profit organizations. Companies are entitled to a 40% subsidy because they are entitled to claim back VAT. SunPower also offer assistance in securing a bank loan with various institutions.
From which state funds is the subsidy paid?
Photovoltaic systems are subsidized by the Electricity Authority subscribers who pay an additional charge on their electricity bill each month for “renewable energy sources”. This amounts to 0.13 cents/kWh.
What is the maximum level of kW per installation that can be subsidized?
Small and larger systems up to a maximum of 20kW.
Will there ever be a shortfall in the power supply if a smaller system is connected?
No – a house will always have enough electricity as it will remain connected to the Electricity Authority of Cyprus grid – even after the installation of the system. The electricity produced is metered separately so that the homeowner knows how much power is being sold to the EAC.
How much does the EAC pay to the homeowner for the power generated?
12 cents/kW. – this is a higher price than the homeowner pays for their own electricity which is currently approximately between 4.2 cents and 6.5 cents / kWh. A cheque is sent by the EAC to the homeowner every two months for the first15 years. Thereafter, the householder’s electricity bill will be credited with the value of the electricity sold to EAC.
Is the EAC obliged to buy the electricity produced?
Yes, a contract is entered into between the owner of the installation and the EAC where the EAC undertakes to purchase the electricity produced for a period of 15 years at a fixed price of 12 cents/kWh. After 15 years, the EAC undertakes to buy the electricity at the price it is selling to households.
Will a homeowner be able to monitor the production of his photovoltaic system?
Yes, The charge regulator records in detail the output of the system giving the owner an accurate reading.
What paper-work is required to secure the subsidy from the state?
- Building permit or town planning permit
- Topographical diagram
- Diagrams of the house roof
- Ownership title Deeds or proof of ownership
- Latest electricity payment
Who will prepare all the documentation?
SunPower staff undertake to prepare and submit all the documentation required by the government.
How long does it take to have the state grant approved?
The time varies as documents are submitted to the state Ministry but should not exceed a few months.
Are there any payment or loan facilities from banks?
Yes, there is a self-financing scheme offered by various banks. The bank provides the loan, and the repayment is financed exclusively by the government subsidy and revenue from the monthly sale of electricity to the Electricity Authority of Cyprus.
Who is entitled to loan facilities?
All clients are entitled to apply.
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