Solar PV Net meetering explained

Harvest 4 EnergyRenewable Energy Division
Business and Domestic Energy Solutions
• Solar Photovoltaic (PV) Systems
• System Costs and Options
• Net Metering
• Application Process
• Installation Requirements
• Licencing Requirements
• Easy Financing Solutions
www.harvest4energy.com
2017

Harvest 4 Energy Solutions
• We don’t just make recommendations on our systems, we work with you
through every step of the installation. We provide the hardware and software
you need, plus offer financing to make it happen. And because we
understand the value of partnership, we can easily collaborate with any third-
party developers or technology vendors you choose to customize your system
.
• Lowering costs. Going green. Improving people’s lives. Every organization
and household has unique goals. We figure out your energy strategy by
evaluating how you use energy and its effect on way of consumption.
• Gain energy independence by generating lower-cost, renewable solar energy
on site.
• In the next few slides we will navigate with you on the different options that
fit your particular needs.
www.harvest4energy.com 2

Energy Conservation
Energy is one of the largest overhead costs to any business and household, and can be a very
complicated landscape to navigate. Upgrading to efficient equipment but continuing to operate
in this fractured landscape is leaving money on the table.
Here are three steps you can take towards digitizing your building or home and creating an
intelligent energy environment.
1. Best in class LED not only saves you energy but can become the most ubiquitous
intelligently enabled edge device throughout your enterprise.
2. Install a net metering Photovoltaic system ready for the smart grid.
3. Collect and integrate new and existing data throughout your building. Current’s digital
energy management system runs on an industrial strength cloud platform as a single pane
of glass to see exactly where and when energy is being used in real time
3

What is Net Metering?
Net – metering is a billing arrangement where consumers who generate electricity on their
residential premises with the use of Photovoltaic System may export the excess of this to the
Electric Utility Grid and use it to offset electricity imported from the Grid to the premise during
the applicable billing period.
In case that the consumption exceeds the production, then the consumer will be billed the
difference, while in the opposite case, the production surplus is transferred to be used in the
following (forthcoming) two-month billing period. The final clearing will be stated on the last bill
of the financial year (February-March). Any surplus may not be transferred to the next billing
year.
In cases of Residential Consumers, the metering may contain the electrical consumption of
Storage Heaters if its is requested.
The maximum power allowed per beneficiary according to the Governmental Scheme
pronounced is 5kWp.
4 www.harvest4energy.com

Application Process
Eligible Applicants
Right to apply has any Residential and Commercial Building.
These investments regard instalments of Photovoltaic (PV) Systems on the roof of licensed
domestic units (primary house) or buildings, in which local authorities are housed or on the
ground of the plot in which the aforementioned building is located.
In cases that the suggested installation place is of common use (e.g. blocks), then all owners
must declare that they agree for the installation at the premises.
Vulnerable Applicants
Any individual falling in the category of vulnerable consumers according to the relevant order of
the Ministry of Energy, Commerce, Industry and Tourism, or any recipient of the Single Parent
Families Subsidy with annual gross family income €39,000, who is also a permanent resident in
the domestic unit in which the Photovoltaic (PV) System is installed has the right to apply/is an
eligible applicant. In this case the applicant is funded €900 per kWp installed, with maximum
fund of €2,700 prior to submitting the relevant request and having obtained the permission by
the Cyprus Institute of Energy.
5

Installation Requirements
Photovoltaic system installation requirements
The optimum installation parameters of a P/V system according to the geographic location of
Cyprus, is South oriented with inclination of 28ο-30ο. Any divergence from these parameters
affects the system output negatively resulting to the relevant divergence on the optimum
economic return.
The net area required for a P/V installation of 3kWp - 5kWp is approximately 25m² - 40m² if
installed in a tiled roof or approximately 45m² - 75m² if installed on a flat roof/terrace. The
installation is subject to the orders in force of the relevant House Planning Department.
Annual Energy Yield
The average annual energy yield of a Photovoltaic (PV) System with capacity of 5kWp, over a 20-
year period, reaches 8,300kWh, equivalent to €1,660 compensation in electricity bills, based on
the EAC residential tariff (€0,20/kWh).
6

Life Expectancy and Warranty
Photovoltaic (PV) System Life Expectancy
The useful life of such P/V system exceeds 20 years.
The Net Metering Contract with EAC is valid for 15 years for Residential Consumers and 10
years for Commercial Consumers.
Harvest 4 Energy Ltd provides manufacturers written warranty for the Photovoltaic (PV) System
delivered for every product and equipment used in the installation of the PV System.
Photovoltaic Modules or Solar Panels have a written 10-year warranty by the manufacturer that
the respective PV Module is free of material defects. Moreover manufacturers of PV Modules
provide a 25-year performance warranty guarantee on every module.
Solar inventers have a 5-year warranty by the manufacturer with extension right from 10 up to
20 years

Licensing Requirements
Licensing/Installation/Commissioning procedure
The applications should be submitted to the EAC, which is the Distribution System Operator.
(DSO).
Upon the submission of his application, the applicant should pay the fee for the meter
replacement. The current meter is replaced with a new one of bidirectional measurement
(capability of double recording) to record the power produced by the Photovoltaic (PV) System
which is Exported to the Grid , as well as the premises' energy consumption which is Imported
from the Grid.
EAC issues its approval/permission or its justified rejection of the application within seven (7)
working days. In case the application is rejected, only €200 + V.A.T out of the amount paid for
the replacement of the meter is returned to the applicant within twenty working days as of the
rejection day. The amount of fifty euro (€50) withheld reflects the administration cost of the
application by EAC.
8

Subsequent to the installation of the Photovoltaic (PV) System, an application should be
submitted to EAC for inspection and connection of the system with the utility Grid. EAC is
responsible to schedule the inspection and the connection within a time period not
exceeding 25 working days as of the submission day of the application for connection.
Applicants should have completed the installation, the inspection and the connection of the
Photovoltaic (PV) System to the Grid within 60 working days. In case that the installation,
inspection and connection of the Photovoltaic (PV) system to the Grid System are not completed
within the 60-day period set, then the approval obtained is no longer in force.

Expenses / fees
The prospective producer / consumer upon his application submission pays a lump sum
of €250 + VAT, which is the administration cost of the application by EAC, the replacement cost
of the meter and the inspection and connection cost of the Distribution System.
The producer / consumer pays an annual fee to the Supplier of €47,23 + VAT per kWp, to offset
the belayed/deferred production and consumption of power in the house. These charges are
paid by the producer / consumer in six equal instalments and are included in the supplier's
invoice, i.e. €7,87 + VAT per kWp of the P/V system. This fee is subject to future variations
according to the rules and regulations published by the Cyprus Energy Regulatory Authority
(CERA).
Based on the Photovoltaic (PV) System's economic return expected, the payback period of the
initial investment is estimated to be 5 years.

Documents required by the applicant
11
Copy of the last 6 utility bills or copy of the statement of the last twelve-month electricity
consumption of the building, which is issued by EAC Customer Service Department.
Copy of a recent EAC utility bill, in the applicant's name, which regards the domestic unit in
which the P/V system will be installed.
Copy of the Title Deed of the building in which the P/V system will be installed (In case the title
has not been issued, a copy of the plot's ownership title and construction license should be
attached)
Building License
Owners' consent for installation in case the owners are more than one, or the owner is not the
applicant.
Copy of the Plot Layout Plan of the area in which the house is located.
Signed statement from the applicant that the domestic unit for which the application is
submitted is used as a permanent first house.
Permanent residence certification or six (6) recent EAC utility bills in the name of the applicant,
in case he is not a Cypriot national.
Proof that the applicant falls within the category of vulnerable consumers (applicable for
consumers that fall in Vulnerable categories and are eligible for incentives)
.

Option 1 – Net Metering – Stable PV System –Turn Key
Complete Photovoltaic System Solutions
12
Capacity Price Euro Vat 19% Total Cost
Euro
Yearly
Benefit
Euros
Break Even
Years
EAC Fees Financed
incl. EAC
Fees
Break Even
Years
3KWP 4200 378 4578 900 5.00 297.5 5264.08 5.8
4KWP 5300 1007 6307 1300 4.85 297.5 7172.00 5.5
5KWP 6300 1197 7497 2000 3.74 297.5 8394.16 4.2
Luxor Pnl. 238
Solar Edg. 476
Important Note: The yearly benefit is based on current EAC charges and might change at any given time based on the kWp charges.
• The Euro 297.5, EAC Fee is the application fee charged for evaluation and inspection and its once off and is not included in the
price, except in the case of finance. In the above prices all systems are installed and inspected prior to delivery to client.
• The Luxor Solar panels and the Solar edge inverter are optional. Price is based on a 3kWp system.
• In case the roofs are gable based on ceramic tiles the brackets have an additional charge of Euro 200 + VAT for the 3kWp System.

Option 1 – Net Metering (Financed) Stable PV System –Turn Key
13
Capacity Price
Euro
Down
Payment
Balance
Financed
HP
Interest
Duration
2 Years
Year 1-2
Interest
Monthly
Payment
Year 1-2
Cost
Year 1-10
Benefit
3KWP 4578 1500 3078 5.5% 3416.58 338.58 142.36 1708.32 900
4KWP 6307 1600 4707 5.5% 5224.72 517.72 217.70 2612.40 1300
5KWP 7497 2500 4997 5.5% 5546.66 549.66 231.12 2773.44 2000
A B C D E F G H I J
• The yearly cost is for year 1 and 2 only which is the repayment period.
• The yearly benefit over the life of the system is of a 10 year period which is under warranty. Additional extended warranty can be
purchased with the contract. Benefit in Column J is x 10 years. i.e. 5kWp multiplied by (J) is Euro 20,000. The value of the yearly
benefit is calculated based on EAC charges to consumers and might change without notice by EAC.
• If the owner of the system is a legal entity, the VAT return, finance costs and depreciation costs can be an accounting benefit and are
deductible.
• A once off 50 Euro charge is added for stamp duties on the Hire Purchase contract.

Net Metering Benefits – Illustration
Complete Photovoltaic System Solutions based on a 3 Kwp system with current rates.
The calculated performance of a 3 Kwp installed capacity, far exceeds the 5000 kwh per year.

Net Metering Installation – Schematics
15
Optional Battery StorageTypical Installation

System Components Inverter
16

System Components Inverter
17

Luxor Solar Panels - Indicative
18

System Components Solar Panels Indicative
19

System Components Mounting systems for illustration
20

System Components and Options
21

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Exploring Solar – harvest4energy

23www.harvest4energy.com
THANK YOU FOR YOUR ATTENTION
Harvest 4 Energy Ltd
21 Demosthenis Severis Avenue
Fourth Floor
Nicosia
1080
Cyprus
Mob: +357 99689961
avaroshiotis@harvest4energy.com
avaroshiotis@cyoilgas.org
THIS REPORT IS NOT TO BE PUBLISHED ON ANY PUBLIC DOMAIN
All Rights Reserved – Harvest 4 Energy Ltd 2013-2017

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