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 youthrough every step of the installation. We provide the hardware and softwareyou need, plus offer financing to make it happen. And because weunderstand 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 organizationand household has unique goals. We figure out your energy strategy byevaluating how you use energy and its effect on way of consumption.

• Gain energy independence by generating lower-cost, renewable solar energyon site.

• In the next few slides we will navigate with you on the different options thatfit your particular needs.

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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

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What is Net Metering?

Net – metering is a billing arrangement where consumers who generate electricity on theirresidential premises with the use of Photovoltaic System may export the excess of this to theElectric Utility Grid and use it to offset electricity imported from the Grid to the premise duringthe applicable billing period.In case that the consumption exceeds the production, then the consumer will be billed thedifference, while in the opposite case, the production surplus is transferred to be used in thefollowing (forthcoming) two-month billing period. The final clearing will be stated on the last billof the financial year (February-March). Any surplus may not be transferred to the next billingyear.In cases of Residential Consumers, the metering may contain the electrical consumption ofStorage Heaters if its is requested.The maximum power allowed per beneficiary according to the Governmental Schemepronounced is 5kWp.

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Application ProcessEligible ApplicantsRight to apply has any Residential and Commercial Building.These investments regard instalments of Photovoltaic (PV) Systems on the roof of licenseddomestic units (primary house) or buildings, in which local authorities are housed or on theground 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 ownersmust declare that they agree for the installation at the premises.

Vulnerable ApplicantsAny individual falling in the category of vulnerable consumers according to the relevant order ofthe Ministry of Energy, Commerce, Industry and Tourism, or any recipient of the Single ParentFamilies Subsidy with annual gross family income €39,000, who is also a permanent resident inthe domestic unit in which the Photovoltaic (PV) System is installed has the right to apply/is aneligible applicant. In this case the applicant is funded €900 per kWp installed, with maximumfund of €2,700 prior to submitting the relevant request and having obtained the permission bythe Cyprus Institute of Energy.

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Installation Requirements

Photovoltaic system installation requirementsThe optimum installation parameters of a P/V system according to the geographic location ofCyprus, is South oriented with inclination of 28ο-30ο. Any divergence from these parametersaffects the system output negatively resulting to the relevant divergence on the optimumeconomic return.The net area required for a P/V installation of 3kWp - 5kWp is approximately 25m² - 40m² ifinstalled in a tiled roof or approximately 45m² - 75m² if installed on a flat roof/terrace. Theinstallation is subject to the orders in force of the relevant House Planning Department.

Annual Energy YieldThe 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 onthe EAC residential tariff (€0,20/kWh).


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 10years for Commercial Consumers.

Harvest 4 Energy Ltd provides manufacturers written warranty for the Photovoltaic (PV) Systemdelivered 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 thatthe respective PV Module is free of material defects. Moreover manufacturers of PV Modulesprovide 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 to20 years

Licensing Requirements

Licensing/Installation/Commissioning procedureThe 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 meterreplacement. 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) Systemwhich is Exported to the Grid , as well as the premises' energy consumption which is Importedfrom 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 forthe replacement of the meter is returned to the applicant within twenty working days as of therejection day. The amount of fifty euro (€50) withheld reflects the administration cost of theapplication by EAC.


Licensing Requirements


Subsequent to the installation of the Photovoltaic (PV) System, an application should besubmitted to EAC for inspection and connection of the system with the utility Grid. EAC isresponsible to schedule the inspection and the connection within a time period notexceeding 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 thePhotovoltaic (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 completedwithin the 60-day period set, then the approval obtained is no longer in force.

Licensing Requirements Expenses / feesThe prospective producer / consumer upon his application submission pays a lump sumof €250 + VAT, which is the administration cost of the application by EAC, the replacement costof 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 offsetthe belayed/deferred production and consumption of power in the house. These charges arepaid by the producer / consumer in six equal instalments and are included in the supplier'sinvoice, i.e. €7,87 + VAT per kWp of the P/V system. This fee is subject to future variationsaccording 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 theinitial investment is estimated to be 5 years.


Documents required by the applicant

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Copy of the last 6 utility bills or copy of the statement of the last twelve-month electricityconsumption 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 inwhich 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 titlehas not been issued, a copy of the plot's ownership title and construction license should beattached)Building LicenseOwners' consent for installation in case the owners are more than one, or the owner is not theapplicant.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 issubmitted 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 forconsumers that fall in Vulnerable categories and are eligible for incentives).

Option 1 – Net Metering – Stable PV System –Turn Key

Complete Photovoltaic System Solutions

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Capacity Price Euro Vat 19% Total Cost Euro

Yearly BenefitEuros

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 theprice, 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


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Capacity Price Euro

Down Payment

Balance Financed

HP Interest

Duration2 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 yearlybenefit 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 aredeductible.

• 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



Optional Battery StorageTypical Installation

System Components Inverter

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System Components Inverter

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Luxor Solar Panels - Indicative

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System Components Solar Panels Indicative

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System Components Mounting systems for illustration

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System Components and Options

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Exploring Solar – harvest4energy



THANK YOU FOR YOUR ATTENTION

Harvest 4 Energy Ltd21 Demosthenis Severis Avenue

Fourth FloorNicosia1080

Cyprus

Mob: +357 [email protected]

[email protected]

THIS REPORT IS NOT TO BE PUBLISHED ON ANY PUBLIC DOMAIN

All Rights Reserved – Harvest 4 Energy Ltd 2013-2017

solar pv net meetering explained

Engineering