Neon Energy offers credit solutions for the completion of PV projects in the face of the newly announced RES regulation in Greece

On the 12th of November, Greece’s medium-term regulation N 4093 / 2012 for the period 2013-2016, which included amends to RES requirements, was published for public distribution and information.

The newly announced measures require, as compulsory, the completion and connection to the electricity grid of all pending PV project licenses (including PV Park and Commercial Rooftop PV projects) by the final approved connection date, being 12th March 2013.

Further to this, to ensure that the National Electricity Company has sufficient time to complete the forthcoming connections, it requires all applicants to have submitted their project file that indicates the PV Park or Commercial Rooftop PV Application’s readiness to be connected to the grid one month earlier. This means that essentially the construction of these pending projects must be completed by the 10th of February, 2013 at the latest so that the submission identifying its readiness for grid connection can be made by the due date.

If license holders fail to conform to these new measures they will lose the FIT rate that has been locked in with their approved production permit and the new FIT rate will be set according to the prices that are valid at the date of connection. The applicant does not lose his/her production permit however. He/she loses the FIT rate.

Essentially, this places pressure on the market to construct and install the PV projects by the 10th of February 2013, having submitted all the necessary documentation applying for the project’s connection by the due date, in order for the connection to have been concluded by the 12/3/13. In the event that an applicant has fulfilled all his /her requirements by the 10th February 2013 and despite this the connection to the grid has not been completed by the National Electricity Company by the 12/3/13, the National Electricity Company is considered to be at fault and as such, this does not adversely affect the FIT rate of the production license already granted to the applicant.

In this climate the credibility and professionalism of the selected EPC company plays an increasingly crucial role. In addition, these measures impose urgency on the construction, installation and connection of pending PV project licenses, during a period where one of the greatest barriers to the development of these projects is the availability of financing. Financing for PV Parks can be sourced from 3 areas in Greece:

  • Banks
  • Non-bank financial institutions
  • Financing services sourced from the private market (for example, Neon Energy offers flexible financing packages for customers who do not wish to undertake a bank loan).

In view of these investment barriers, Neon Energy has recently announced on the 4th of November 2012, at this year’s 7th international exhibition «ENERGY PHOTOVOLTAIC – Photovoltaic Systems & Renewable Energy Sources», its new photovoltaic solutions that assist interested punters in undergoing their PV investment.

For clients who have already attained their production license, Neon Energy offers the following solution. The company will construct its client’s already licensed PV Project (up to 100kWh in capacity) with 25% principal, and provides credit for the balance 75%. This enables license holders to complete their project (including PV Parks and Commercial Rooftop PV Applications) with minimum start-up capital and high financial returns.

Despite the difficult economic period that Greece is currently undergoing and the recent regulatory announcements, PV continues to represent one of the most profitable investments in Greece. PV Investments, despite recent regulatory changes, continue to offer guaranteed, high returns for a period of 20 years.

Neon Energy is among the leading multinational firms in the field offering its services for the German, Italian, Greek, Bulgarian, Cypriot and Romanian markets. The company provides Business Development and EPC Contracting services as well as Financing Packages for the completion of projects. The company offers photovoltaic solutions for park applications as well as commercial and residential properties, which are supported by high-quality photovoltaic technology.

It recommends, surveys, builds and installs high quality PV Systems. Today, Neon Energy has an impressive portfolio consisting of over 92MW PV Parks, 11,9 MW Commercial Rooftops and 6.9MW on Residential Rooftops, which are installed or in progress.