On an international level, climate change caused by carbon dioxide and other greenhouse gas emissions, is now considered to be even more serious than the threat of terrorism.

A report just issued by the World Wildlife Fund (WWF) shows that an increase in global temperature of around 2°C above pre-industrial levels would leave countries such as India, Africa and Mexico facing food and water security issues.

Earlier this month, the director of WWF's Climate Change Programme, Jennifer Morgan, told ministers at a roundtable on energy and environment that the world may have only ten years left to reduce soaring greenhouse gas emissions. "This generation of politicians is the last generation who have it in their power to secure the future of our planet, to safeguard the health and livelihoods of millions of people and the habitats that sustain their lives. History will not forgive them if they fail to act," she said.

At last year's European Conference for Renewable Energy, held in Berlin, participants concluded that the EU should not delay in setting more ambitious targets for solar, wind and other forms of renewable energy. Environmental groups called on the EU Commission to introduce a target for boosting the share of renewable energy to 25 per cent by 2020.

Photovoltaic solutions

Clean energy from the sun can be made use of in two ways. Heat is captured and stored to provide hot water - a system already used by a number of Maltese homes. Photovoltaic power is another way to harness solar energy by converting sunlight directly into electricity.

Photovoltaic (PV) cells are already familiar to anyone who has used a solar-powered calculator. They are made of semi-conducting materials similar to those used in computer chips. When sunlight is absorbed by these materials, the solar energy knocks electrons loose from the atoms, allowing the electrons to flow through the material to produce electricity. An array of modules can be mounted on a flat plate and fixed at an angle facing south to generate a power supply for households.

Enemalta has promised better efficiency after the gas supply crisis this winter. But how much is the energy corporation geared up to promote and encourage the use of energy generated from sunshine?

The EU directive on renewable energy (wind power, solar, biomass, etc) requires member states to encourage their promotion and guarantee the origin of electricity produced from renewable energy sources. But in Malta people who want to invest in photovoltaic panels are finding obstacles. PV panels do not yet qualify for the Lm70 rebate which Enemalta has offered to solar water heater users. Even the recently introduced VAT reclaim is restricted to solar water heaters but not applicable to PV. Incentives need to be made available across a wider range of renewable energy solutions to prevent a bias between one renewable source and another.

There are a number of very good reasons for investing in a PV system. When people generate their own electricity they are likely to save more energy when they find they can sell any surplus, leftover after their own household needs are met, to the grid. Generating part or all of your electricity from your own rooftop, using nothing but the sun, gives a certain feeling of independence.

After the initial investment there are no more bills to pay and maintenance is very low. Every so often the panels need to be cleaned, especially after rain showers at this time of year which can be laden with desert dust from the atmosphere. Instead of using fossil fuels which harm the planet, generating your own electricity with PV panels contributes to a better environment.

Spain, England and Austria subsidise PV systems in different ways. Cyprus, Greece and other Mediterranean countries have also discovered the benefits of this type of solar energy system. One of the declared functions of the Malta Resources Authority is to "impose levies on energy produced by non-renewable sources and grant subsidies in connection with the production of energy from renewable sources". Removing VAT from photovoltaics and activating the same rebate enjoyed by other solar energy systems would be a good start.

How much electricity does a PV system generate? Power from the sun in Malta is much higher than in countries like Denmark or Germany, both keen users of photovoltaics. In Germany, people who produce clean renewable energy for their homes and for the grid are paid twice the real price of electricity at 54 euro cents (23c) per solar kilowatt hour (kWh).

In Malta the price of electricity is much lower than most European countries so renewable systems have not been as competitive as they might be if we looked at economic and environmental costs in a more realistic way. Initial discussions indicate that Enemalta has so far been reluctant to pay more than the bottom rate, 2c per kWh, for energy sold to the national grid, to those willing to invest and generate their own clean energy from PV panels on set up on their rooftops.

Most Maltese families pay the greater part of their electricity bill at the 4c per kWh rate when the real price of producing this electricity is calculated to be somewhere between 4c and 6c per kWh. At the moment all electricity is generated from imported fuel.

Malta's artificially cheap electricity rate does not reflect true costs. Last year Enemalta declared a loss of around Lm10 million. The recently added 17 per cent surcharge to the consumer's bill is little more than a necessary stop gap, making up for the latest surge in the price of oil on the international market.

But oil prices are destined to keep going up. The absence of an ecotax on fossil fuel, despite environmental concerns, prevents alternative energy being as economically attractive as it should be. In this situation it can only be a matter of time before the price of conventional electricity will go up to a more realistic 7c per kWh.

The average amount of daylight througout the year in Malta is 12 hours per day, eight hours of which are sunshine. With these figures a one kilowatt peak (kWp) system would generate between 1,200-1,600 kilowatt hours every year, roughly one-third of the total electricity consumption of an average family without energy saving measures in place. Electricity from PV can operate in tandem with the conventional electric supply.

Any one starting up with photovoltaic panels, initially as a backup to their main supply, can begin with a 250 Watt peak system and gradually expand. A PV system of 1 kWp (1,000 Watts) including panels, rack, cabling and inverters, would cost around Lm2,500 including VAT. Companies can claim back VAT, bringing the price down to around Lm2,100. The panels are guaranteed to last 25 years although their expected lifetime is longer. Once the investment point has been reached you can begin to make a profit on the energy you have generated from the sun for free.

This point should be reachable within 10 to 16 years, depending on decisions which need to be taken now by the energy corporation, together with Malta Resources Authority. Measures must be put in place to ensure that home producers of clean energy are paid the real price of electricity while the appropriate incentives and VAT reclaim should also be made accessible to PV users.

The Malta Resources Authority is shortly expected to publish the national energy strategy. Going on the promises made so far regarding our target for sustainable energy from renewable sources, we have only five years left to go from zero to five per cent by 2010. Many renewable energy sources such as wind farms and biogas plants take a long time to be set up. On the other hand PV is a small scale activity one can start straight away. It would make good sense for government to take immediate measures toward better promotion of photovoltaics.

Enemalta and the MRA should reach an agreement to give more value to the PV-generated kilowatt hour. The least they could do is to pay the producer what it costs the power station to generate one kilowatt hour at somewhere between 4c and 6c. Or they could go one step further by promoting the use of PV with a payment of 6c to 8c per kWh as an incentive for anyone who generates their own electricity at home.

Enemalta could also help by waiving the Lm20 installation fee on PV meters. Government should offer an incentive for the initial investment they are making toward cleaner air. Encouraging the use of PV by putting useful information on energy corporation and government Websites would lead to better awareness among energy consumers.

The decentralised generation of electricity from photovoltaic panels matches supply with demand, while making the grid less sensitive for power failures and overload. Another advantage is that the price of electricity becomes constant since it is independent of the price of oil. Instead of worrying about where to site the next power station we might be better off investigating the potential to set up a PV panel manufacturing plant in Malta. There is a large demand for PV panels in the world and not enough manufacturers to meet the need.

Installing a PV system at home

You will need:

¤ Panels

¤ Inverters

¤ Rackmount

¤ Two-way meter

¤ Permits/notifications

¤ Buying the panels is the most expensive part - about 70 per cent of the total cost. One of the most important specifications of a panel is Watt peak. This is a standard method to measure the performance of a panel at certain conditions which helps the prospective buyer to compare different brands. It is not the maximum amount of electricity a panel can generate but it gives a good indication. Panels come in many sizes. Most Maltese rooftops could accommodate at least nine square metres of PV panels required to generate 1,000 Watt peak. Because these are mounted at an angle the actual roof area needed would be around 7.5 m2.

¤ Inverters convert electricity from the panels into 230 Volts AC for feeding into the power grid. It is important that your inverter matches the power of the panels. Rather than having one big inverter, a modular system offers the possibility to start small with an option to gradually expand the system in future. It is preferable to have multiple connections for the panels since several small strings of panels perform better. A good inverter has an expected lifetime of 20 years and would account for about 15 per cent of the cost.

¤ The rackmount, including connection cables, brackets and labour will make up the remaining 15 per cent of installation cost. The mounting frame should be sturdy enough to withstand high winds and galvanised to prevent rust. It is also very important to have the correct south-facing angle for your PV system. It should not be in the shadow of trees or other buildings. The shape and size of the rack depends on the situation of the house and the size of the system. Facing south at an angle of 29 degrees is optimum, but slight variations will not make too much of a difference.

¤ Enemalta will replace your current one-way meter with a two-way meter at a cost of Lm20. The new meter will measure both how much electricity you are buying and how much you are selling from any surplus you may have generated if you did not use it all to power your own home. Another meter will be installed to measure how much electricity your PV system has generated.

¤ You need to notify the Malta Resources Authority and apply to Enemalta for a permit. You may also need a permit from MEPA for mounting panels on your rooftop depending on the size and location of the panels. Consult MEPA if in any doubt about this.