The government has launched another three subsidy schemes for solar energy which will allow 7,000 families to benefit from 50 per cent of the cost of photovoltaic panels, up to a maximum of €2,300.
The schemes will receive EU funds and will cost €15 million but EU Funds parliamentary secretary Ian Borg said they were part of a bigger €58 million investment in sustainable energy.
These new schemes are not being driven merely by altruism: last November, the European Commission said Malta was unlikely to reach its 2020 targets. A UN report published last March also found that Malta was a laggard when it came to renewable energy production.
Malta generated just 4.7 per cent of its energy from renewable sources in 2014, according to Eurostat. It has committed itself to generating 10 per cent of its energy from renewable sources by 2020.
The most recent progress report from 2015 indicated that some member states, including Malta, “need to assess whether their policies and tools are sufficient and effective in meeting their renewable energy objectives. In 2013/2014 Malta had a trajectory of only three per cent”, the European Commission representation in Malta said.
Failure to do so means Malta could be looking at fines – although these have never been quantified.
The schemes will receive EU funds and will cost €15 million
Altruism and targets apart, there are sound business principles behind investing in energy-friendly equipment. Palumbo, for example, recently installed PV panels on the roof of the shipyard buildings, saying the payback period was estimated to be 10 years.
Ryan Xuereb, the managing director at Econetique Ltd, said PV panels have become increasingly more efficient while decreasing in cost.
“When one considers that on top of that you can also get an incentive from the government to install a PV system, the investment becomes a ‘no brainer’.
“It is, however, important to have a PV system installed by a professional company with specifically trained engineers and installers. This ensures that you will get the maximum return on your investment with peace of mind,” he said.
He also pointed out that some businesses might also consider using the roof for a water heating system.
“Nowadays, with technological advances, heat pumps can provide all the hot water you need when you need it at an extremely low cost. When you also take into account that roof space is limited in Malta you might be better off opting to install a domestic hot water heat pump in conjunction with a PV system on roof.
“This way the cost of producing hot water is reduced to a minimum without compromising roof space. Nowadays half the production of energy from one PV panel in conjunction with a heat pump means you can have hot water whenever you need,” he explained.
Of course, energy and hot water are not the only way for a business to improve its green credentials and save money.
Altern pointed out that there are two approaches: energy saving and energy generating. The former help to reduce the building’s energy footprint, and examples include LED lighting, building insulation, and combined heat and power systems. On the other hand, energy generating systems such as photovoltaic and solar water heaters exploit renewable sources of energy to generate electrical and thermal energy.”
Altern offers a ‘plan-do-check-act’ approach which starts off with an energy audit which will identify key metrics and consequently propose factual and applicable solutions.
Its managing director Matthew Spiteri believes that the key to achieving a net carbon neutral building involves the application of standard evaluation tools, such as energy audits, leading to customised, integrated solutions.
Payments are only made once the installation is completed and certified
“One should remember that the shift to energy sustainability is never just about one solution alone,” he said.
PV installations were rare until a few years ago but the government subsidies prompted a flurry of companies to import and install panels, which – as can be imagined – resulted in inexperienced and sometimes shoddy workmanship.
The GRTU decided to set up GRTU Approved Certification a few years ago to give customers peace of mind.
“There were problems, varying from unsafe systems to systems installed so hastily and carelessly that could easily be described as eyesores. When the certification was introduced, the companies that were operating professionally immediately subscribed and needed no improvements: their aim was to prove to their customers they were providing professional installations,” a GRTU spokesman said.
“Others also subscribed, but were asked to make improvements, which most did. A few did not manage to reach the standard and were either removed from the list or voluntarily withdrew.”
“It is to be clarified that in the past, GRTU did not shy away from expelling companies which did not operate satisfactorily in terms of safety, both for the owner of the dwelling as well as third parties. Most importantly, clients of GRTU Approved retailers have the opportunity to seek remedial action in case they are not completely satisfied by the service provided, or have doubts on any aspect of the sale and installation. This service is now being provided completely free of charge, including the site visits,” the chamber said.
Certification standards are maintained by regular random inspections of installations as well as insisting that providers give clients all the necessary information. It also covers quality in materials and workmanship.
The GRTU has added another benefit by tying in the certification to an eco-loan scheme whereby the interest is paid by the retailer and the customer has the right to involve GRTU if something is wrong with the installation.
“Payments are only made once the installation is completed and certified, ensuring the client is protected at all times,” the spokesman explained.
Bank of Valletta has also designed a product for its environmentally-aware clients. The BOV Eco Personal Loan has been complemented by a Special Scheme, whereby the bank helps to finance the purchase of solar water heaters and photovoltaic systems purchased from participating retailers.
Both the processing fees and the security are being waived, while the interest is being discounted and being paid by the retailers themselves.
Recently the bank widened the scope of the BOV Eco Personal Loan to cater for the purchase of new motor vehicles whose carbon dioxide emissions are below 100g/km, or 130g/km where the applicant is concurrently scrapping another motor vehicle under the Government Car Scrappage scheme. Purchase of electric and hybrid motor vehicles and conversion of engines to operate on auto gas are also being considered under the same product.
The BOV Eco Personal loan can be used to finance eligible projects ranging from €500 to a maximum of €40,000.
In the case of the Special Scheme, the loan amount varies between €1,000 and €15,000.