The Association of Cyprus Renewable Energy Companies (ACREC) is stepping up the pressure by making public its disagreements with the Ministry of Energy’s intention to impose a cap on the price of photovoltaic panels to be sold under the Photovoltaic for All project.
For its part, the Ministry says it is ready to hear in person the arguments of the association, but for now, it insists on the position that, without setting a ceiling on the price, consumers, and the state RES fund, may face the risk of exploitation through unjustified overcharging.
Within the next week, a meeting will take place between the Minister of Energy George Panastasiou and his colleagues at the Energy Service with a delegation of the association to discuss the dispute, information reported.
In government circles but also in the energy sector and wider market players, there is already the impression that photovoltaic panels are overpriced in Cyprus and their price per kilowatt has not been adequately adjusted to the clear reduction recorded in photovoltaics in other European countries.
As Phileleftheros already wrote, the decision in principle at the Ministry of Energy provides for a cap of 1,325 euros per kilowatt for systems to be installed during the implementation of the Photovoltaics for All project. For four-kilowatt systems, the cap will be more cost-effective, since the cap will be set at EUR 5 000.
The ACREC argues that the specific ceilings make the plan unprofitable for PV installers, especially small and medium-sized ones, and the Ministry argues that the ceiling ensures a sufficient percentage of profit for installers and even opposes that it could be lower.
As the president of the association, Fanos Karantonis, had recently told Phileleftheros, the combination of the cap and the decision for installers to be paid for the systems they install only after the completion of the work and the start of operation of the system, increases the overall cost for professionals, as for a period of about eight months, which they estimate will be the period of repayment from the RES fund, they will only have expenses for each installation – and even more so under conditions of high-interest rates.
For its part, the government side argues that Photovoltaics for All implies a serious increase in the turnover of the installation companies, a development that ensures them an extension of financial facilities from the banks, but also an increase in revenue and profit. The government also assures that through the new plan – which will come into force in January – provisions will be made to speed up the licensing procedures, the concession of the grant of one thousand euros for each photovoltaic, the connection of the system to the network and the final payment of the installer.
Regarding the concerns of ACREC that its intentions will hurt small and medium-sized professionals, the Ministry responds that their participation in the new plan is not mandatory and that they can continue to serve customers who participate in other subsidy schemes, through which they receive an advance payment of about 40% of the total cost.