Investment in solar panels is that much more attractive now that the government announced a 362 per cent increase in the rate at which Enemata buys energy from these green sources.
Households will be paid 25c for every unit of electricity they feed into the power grid, those in Gozo will be positively discriminated against and get 28c, while commercial establishments will receive 20c.
Enemalta used to pay a measly 6c9 per unit for such energy while it charges at least 16c1 for every unit of electricity it generates through its power stations.
The scheme is being capped, however, both nationally and per household. Enemalta will buy a maximum of 3KW from households and 100KW from commercial establishments and, nationally, a maximum of 7.5MW will be bought from the market. The capping is valid for this year and can change in the coming years.
The previous low rate made investing in renewable energy sources only barely feasible in most cases. In fact, when announcing the new tariffs this week, the government said the new rates were being introduced to encourage more people to go for renewable energy sources, adding that this would be one of the avenues for Malta to reach its target to produce 10 per cent of its energy from renewable sources by 2020.
The new tariffs, combined with subsidies of up to half the cost of a domestic photovoltaic system costing €6,000, meant that costs could be recouped within eight years on most systems, it said. In fact, the rates are being guaranteed for eight years for households and seven years for businesses.
Gozitan households can also benefit from a separate grant of €560 to install solar water heaters.
Enemalta offers what is known as a net metering system, which basically offsets consumption with production and pays for any surplus but consumers will be given the option to switch to the new feed-in system, which effectively means they would get more money for the electricity they generate.
The rates were welcomed by importers of PV systems, with one describing it as a "Godsend".
David Zammit, a director of Solar Solutions Ltd, said the new tariffs were "a very positive step" because, along with the government grant, investing in such PV units was "a once in a lifetime opportunity". He said people investing in such units "were in for a good deal".
Mr Zammit said it would be interesting to read the fine print on the legal notice once it was issued.
Similarly, a sales manager, who preferred not to be named, said the feed-in tariffs would increase interest. However, he said, the investigation into allegations of wrongdoing in the applications for the government grant meant that customers were enquiring about the systems but would not commit to buy.
The police investigation is about a special scheme, agreed upon between a supplier and the San Lawrenz local council to encourage residents to take up government subsidies.
The scheme would enable people from the small Gozo village to invest in PV panels for just €1,000. The scheme was based on the government's refund policy to give back 50 per cent of the cost price for a maximum of €3,000. Residents were allegedly given the option to pay €4,000 and still receive the maximum government refund of €3,000 by having the price on their invoice inflated to €6,000, which, the supplier claims, was the actual cost of the system. After receiving a number of complaints from other renewable energy suppliers, the Malta Resources Authority decided to suspend the scheme and later called for a police investigation.
The supplier insisted last week he was doing nothing illegal and was simply offering a more advantageous scheme for San Lawrenz residents. "This was a marketing strategy. We chose to offer them at €4,000 and fork out the other €2,000 ourselves," he said.
Meanwhile, the Nationalist Party welcomed the news yesterday, saying this was another form of help which the government was giving to encourage this sort of alternative energy and encouraged people to take advantage of the subsidy schemes on photovoltaic panels once they are open.
Details on the new feed-in tariffs will be published in the Government Gazette in the coming days. Further details are available from the Malta Resources Authority on 2295 5151 during office hours.