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New billing method for Net Metering

The changes in pricing result from the implementation of European directives and guidelines, for more efficient self-consumption and a transition to "smart" consumption.

There are 2 measurements in the EAC accounts for those who have an installed PV system with the net-metering method. The two measurements concern the incoming and outgoing energy (measured in kilowatt hours - kWh), as analyzed below:

Incoming energy

The incoming energy is the energy that enters our electricity network from the EAC electrical network, when our PV system does not produce energy (i.e. at night).

Outgoing energy

When electricity is generated by a PV system, the energy is consumed primarily in the household (self-consumption), as long as there is an energy demand at that time (i.e. electrical appliances that are in operation - refrigerators, etc.). In case there is an excess of energy (more energy produced than is consumed in the household), this energy is injected into the electrical grid/distribution network. 

The amount to be billed is the net amount of these two measurements (incoming energy minus the outgoing energy). This amount can be:

A) Positive - Where more energy is consumed than produced. In this case there is a charge.

B) Zero - Where the exact amount of energy that is produced is consumed. In this case there is no charge.

C) Negative - Where more energy is produced than consumed. In this case, the excess energy (kilowatt hours) will be transferred to the next month and the specific kilowatt hours will be deducted from the account of the next two months.

Old billing method (until March 1, 2020)

The previous billing method had fixed amount for the services and the right to use the electricity grid of the Electricity Authority of Cyprus per billing statement. The fixed amount of € 8 + VAT was charged per installed kWp. 

For example, the fixed cost for a 4kW PV system was approximately € 190 + VAT per year.

Now, under European directives, it has been decided that the pricing of these services should be improved for the benefit of producers and that those who manage to consume (self-consumption), most of the production from their PV system should benefit; so that they do not have to use the electricity grid mainly.

New billing method (from March 1, 2020)

With the new billing method, the fixed charge is abolished and the charges are dependent on the use of the excess energy - the energy that has been injected in to the EAC network (outgoing energy). The charge is around 3.5 cents + VAT per kWh (network usage cost).

Pricing comparison:

A 4kW PV system has an annual production of around 6500 kWh per year.

Conclusions

  1. There will be a reduction in the total annual fee with the new billing method.
  2.  With an increased self-consumption of a PV system the charges can be significantly reduced.

Increased self-consumption can be easily achieved, for example: the use of energy-intensive appliances (washing machines, dryers, etc.) during peak production hours of the PV system.