Business PV installation subsidies nearing launch

A much-heralded 160 million-euro support program to subsidize business-sector solar energy panel installations, with or without batteries for energy storage, is now nearing its launch.

Government officials behind the support package are aiming for an energy consumption reduction, from the grid, of at least 35 percent by program participants, as well as carbon emission reductions, by these participants, of at least 30 percent.

The support program’s guidelines are soon expected to be announced so that interested parties can prepare applications. This announcement will be followed by a ministerial decision to activate the program and get the application process underway.

Over 3,000 businesses of all sizes around the country are expected to benefit from this support program.

Judging by current indications, respective pools of 60 million euros each are planned to be made available to small and medium-sized enterprises, while a 40 million-euro sum is expected to be reserved for large-sized enterprises.

Selection criteria for applicants will include proportion of energy costs compared to total operating costs, as well as the amount of financing support requested compared to potential energy-bill cost reduction promised by PV and energy storage installations.

 

 

Business PV and battery support program details soon

The energy ministry is finalizing the details of a support program for business-sector solar panel and battery installations, which are expected to be officially announced soon, most likely within the next few days, and definitely within the current month, energypress sources have informed.

The ministry had made an initial announcement on this PV support program for businesses months ago, but has yet to deliver its details.

Businesses will need to incorporate batteries into their PV installations in order to be eligible for the support program, the sources informed. Subsidies will be offered for both PVs and batteries through this support program, but the subsidy rate for batteries will be considerably greater, the sources added.

In the lead-up, ministry officials had intended to also offer subsidies to PVs without batteries, but this prospect is now off the table.

The support program, budgeted at 160 million euros, a sum to stem from the Recovery and Resilience Facility (RRF), will be implemented by TAIPED, the Greek privatization fund.

 

Early-November notification for business PV subsidies

A 160 million-euro support program subsidizing solar energy panel installations by enterprises is nearing its launch, with the energy ministry set to publish its terms and conditions early next month, ahead of the program’s official announcement.

The support program will only be made available for zero feed-in systems – solar panel units not injecting their production into the grid.

Electricity produced by this category of units will either be instantly self-consumed or stored in incorporated batteries for latter use.

The energy ministry had initially considered restricting this subsidy program to enterprises installing solar systems with batteries, but ended up deciding to also make it available for businesses not incorporating batteries to their panels as some enterprises may not require storage options due to extended operating hours that would enable them to instantly self-consume all energy output.

Subsidy amounts will be smaller for solar panel installations without batteries as a result of their lower investment cost.

Small-business subsidy returns solution sought for electricity suppliers

The energy ministry and ESPEN, the Greek Energy Suppliers Association, have held talks in search of a solution that would reimburse electricity suppliers for electricity subsidies they have provided, on behalf of the Greek State, to small businesses supplied up to 35 kVA, as well as all bakeries, regardless of supply capacity.

The total amount owed by the Greek State to electricity suppliers is estimated to have reached 800 million euros and has been pending for many months, despite the fact that this outstanding sum has been fully recognized, including legally.

Under the current reimbursement procedure, the Greek State only reimburses electricity suppliers for customers who have submitted formal declarations to RES market operator DAPEEP, managing the Energy Transition Fund that covers subsidies, once these formal declarations have been checked.

However, most customers tend to neglect filling in and forwarding these required formal declaration forms, hindering the reimbursement procedure.

An initial Brussels-approved subsidy support program for small businesses ran from February to November last year and has since been extended on a monthly basis.

Business sector PV subsidies set for early autumn launch

The energy ministry, moving fast to catch up on election-related delays to a PV subsidy support plan for businesses, aims to launch the program by early autumn, energypress sources have informed.

The support package, worth a total of 160 million euros, promises to offer a considerable number of local businesses the opportunity to utilize solar energy in order to reduce their energy cost and environmental footprint.

A draft of the subsidy plan’s guide for applicants is just about ready, the sources informed. The guide is expected to be announced within summer so that interested parties can prepare ahead of applications in autumn.

This subsidy plan has been on the cards since the re-elected government’s previous term but was interrupted by the general election’s two rounds, held in May and June.

The subsidy plan, to be financed through the Recovery and Resilience Facility (RRF), is expected to benefit an estimated 9,700 businesses. The energy ministry, heading the effort, aims to attract enterprises of all sizes, from small-scale businesses to larger, more energy-intensive industries. A first-come, first-served criterion is expected to apply.

Subsidized PVs will operate based on a zero feed-in system, meaning they will not be able to inject electricity into the grid. Investors, however, will have the option of combining PVs with batteries, to also be offered subsidy support.

 

Brussels approval of support system enables supplier reimbursements

The European Commission’s approval of an updated Greek energy-sector support system paves the way for the reimbursement of electricity suppliers who have covered, over the past seven months, state subsidies offered on a monthly basis to farmers and small businesses using up to 35 kVA.

The revised support system will also increase its overall budget by 600 million euros for a total of 1.4 billion euros.

The initial version of Greece’s support system, approved by the European Commission late last year, covered the period running from February to November, 2022.

In the case of small businesses using up to 35 kVA, a category numbering approximately 1.25 million businesses, electricity suppliers also needed to use their own company funds to cover state subsidies announced by the energy ministry for December, 2022 and January, 2023. These subsidies were stopped from the following month onwards.

As for state subsidies offered to farmers, electricity suppliers have needed to cover the cost of support for this vocational category over a longer period. Subsidies for farmers have not been interrupted. They have been set at 15 euros per MWh for June.

Suppliers seek recovery of business-category subsidies

A number of electricity suppliers have begun procedures aimed at securing the recovery, through the Energy Transition Fund, of additional electricity subsidies offered to businesses between February and November, 2022.

Some 1.25 million businesses, including restaurants, bakeries, hair salons, shops and kiosks, benefited, during this period, from additional electricity subsidies, which supplemented the government’s standard state electricity subsidies offering to consumers as energy-crisis support.

The overwhelming majority of suppliers ended up using own company capital to cover supplementary state subsidies offered to businesses for electricity usage.

According to market officials, electricity suppliers have spent a total of over 500 million euros to finance these extra electricity subsidies offered by the government to businesses.

 

Enterprises, farmers spared of public service compensation fees

An energy ministry draft bill submitted to Parliament on Wednesday for discussion expected next week includes a provision exempting energy-intensive enterprises in the low and medium-voltage categories, as well as farmers, from public service compensation (YKO) surcharges concerning  electricity bills between November, 2021 and March, 2022.

The energy-cost relief promised by this four-month exemption to consumers of the aforementioned categories is estimated to be worth approximately 63 million euros.

Public service compensation surcharge payments for these categories of consumers were initially suspended, from the end of 2021, at the height of the energy crisis, in order to ease their energy-cost burden.

At the time, government officials originally planned for these suspended public service compensation amounts to be paid at a latter date, once electricity prices had deescalated.

At the beginning of this year, the energy ministry noted these amounts ought to be abolished as a result of fiscal leeway provided by a surplus of the public service compensation’s special account.

Suppliers hit by move for extra subsidies to businesses

An energy ministry decision, reached earlier this month, offering additional electricity subsidies to enterprises in categories up to 35kVA and all bakeries, regardless of energy consumption levels, without having been given the green light to do so by the European Commission, has led to major financial issues for suppliers, caught up in a situation where, among other things, they must either seek reimbursement from their customers or accept having lost these amounts by sacrificing funds through no fault of their own.

European Commission approval for additional electricity subsidies to these consumer groups expired in November.

This measure was launched in April, 2022, when the energy ministry asked suppliers to provide extra subsidies to these consumer groups, retroactively, from January, 2022. These additional subsidies have been offered on a monthly basis, following related monthly updates from the energy ministry to suppliers.

Brussels’ approval, last April, was offered under the condition that the additional-subsidies measure would only cover enterprises consuming up to 35kVA and all bakeries as long as they had not previously received state support exceeding specific limits. This means some recipients of these extra subsidies in 2022 may not have been eligible.

Making matters even more complicated for electricity suppliers, the energy ministry’s decision to keep offering additional electricity subsidies to these consumer groups will force suppliers to check customers for any excess state funds.