Photovoltaic systems in Cyprus
Cyprus’ energy policy adheres strictly to EU binding targets, launching support schemes that aim to provide financial incentives in the form of government subsidies (feed in tariffs) for the promotion of Renewable Energy Sources (RES).
Individuals as well as companies are eligible for participation. The support schemes cover investments for electricity generation from large commercial wind, solar, and photovoltaic (PV) systems, and biomass utilization.
Several renewable energy technologies (RETs), particularly solar photovoltaics (PV), can already produce electricity at a lower cost than Cyprus’ current oil-fired power plants. Based on this analysis, renewable energy could provide 25% to 40% of Cyprus’ total electricity supply in 2030.
The owners and/or producers of photovoltaic energy are able to sell the energy produced by their photovoltaic system to the Electricity Authority of Cyprus (EAC) at a fixed price. EAC in turn is obliged to buy in priority the RES electricity produced by independent producers at a fixed price based on its marginal power production cost.
This makes it a very low risk and high profit venture – with the high policy support and solar subsidies that the renewable energy sector entails, and the fact that contracts are set for a 20 year guaranteed tariff for the production of electricity, an impressive 8% return on investment (ROI) is guaranteed.
Not to mention the fact that Cyprus enjoys more than 300 days per year with an average of 75% sunshine, the odds are all in your favour.
These developments create the need for potential investors to seek professional support in examining investment opportunities and assisting with implementation issues. At Fine Life Limassol, our team of highly-skilled lawyers and tax experts, with broad industry knowledge of Cyprus’ energy legal and regulatory framework, is dedicated to working with you to find the most rewarding opportunities, analyse their strengths and weaknesses, negotiate terms, access capital, manage the post-deal integration process, and make changes to realise improvements in long-term performance.