Net Billing

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With the new Net-Billing scheme, the factory owners are allowed to install large PV systems, on their roofs or in the surrounding areas of their factories, up to 10MWp, and get a credit for the excess energy that they cannot use instantly and hence flows to the national grid. They never receive any money from EAC, but they receive a credit note for the equivalent amount of euro, on their next electricity bill. The cost of each KWh is always valued according to the cost of avoidance of EAC which changes every month and it is directly related to the cost of fossil fuels. Two limits are set for the installed power of each applicant: First, the energy that the factory consumed the previous year has to be more or equal to the energy that the PV system is expected to produce during the first year of operation, and second, the installed power of the PV modules cannot be more than 80% of the EAC power supply at the connection point of the factory to the grid. For a PV system of size between 20KWp and 150KWp, only a building permit is needed. From 150KWp up to 10MWp a town planning permit may be needed. In order to establish the town planning permit, an environmental study is needed if the system is bigger than 150KWp. CERA must issue a license for everyone that wishes to produce electricity in Cyprus, regardless if it going to be for own consumption or for sale. For very small PV systems, below 10KWp, an exception is given.