Using PV Systems to improve Energy Saving:Case Study of Cyprus

Cyprus's electricity generation is highly reliant on imported fossil fuels. The ultimate goals are to reduce this dependency, to use renewable energies to supply demand and to satisfy the environmental need to reduce greenhouse gas emissions. Cyprus has a climate which is characterized by hot dry summers and mild winters. Most of the island enjoys many hours of sunshine and high levels of illumination. This has given birth to the widespread use of solar water heaters, but as yet, there has been little development of domestic electricity generation using photovoltaic, PV, panels. Considering the vast solar resource, the desire for more sustainable electricity generation from solar technologies is unquestionable. Initiatives are being introduced by the Cyprus goverments to encourage the development of renewable energy sources. These include grants to install PV systems and feed in tariffs. This paper examines the financial implications of investing in domestic PV.