Since there is great confusion and misconceptions in the Greek solar market, we are creating a how-to series to present a rough outline of what investors need to know and follow in order to install a 20kW (or less) solar park in mainland Greece. Only for mainland, since RAE has to be involved for any grid-connected solar installation in the islands which makes matters more complicated and time-consuming.
As a backgrounder, a 20kW solar park in Greece currently costs somewhere in the region of ?
So what does an investor need?
- First of all, you need to have access to a piece of land that is more than 4000sq.m. outside city areas or as big as the solar park dictates in city areas (solar parks need planning permission; to get one for any kind of building outside city areas, you need at least 4000sq.m.). You can buy or rent the land.
- You must register a company and assign the piece of land to it.
- Issue an RFP and get lots of proposals. Differentiation between companies are usually material quality and cost.
- Apply to the national electricity carrier (DEH) for connection to the grid network.
- Apply for the Greek subsidy.
- Sign an agreement with the electricity carrier (DEH) to connect your supply to its network.
- Sign an agreement with the company that will be buying your produced power (DESMHE)
- Sign an agreement with the material supplier/installer and start materializing the park.
- Complete the installation and connect to the grid.
- Present a progress and completion report to the Greek state to get the subsidy.
Overall, the process can take up to a year and investors are more likely to spend more than ?50k to kick-off the project since the subsidy will kick in much later. Banks are moving in to provide solar-oriented loans but with relatively high interest (compared to Germany and Spain).
Smaller investors may be reluctant to spend ?100k in a unproven (in the Greek market) investment. However, we expect it to be a matter of time before the Greek public realizes that solar is among the investments that provide quickest turn-around and return of investment. We estimate that for the solar park will pay for itself in 5 years, after which a monthly payment of approximately ?1000 will result from the electricity sold to DESMHE.
Smaller investors may be reluctant to spend ?100k in a unproven (in the Greek market) investment. However, we expect it to be a matter of time before the Greek public realizes that solar is among the investments that provide quickest turn-around and return of investment. We estimate that for the solar park will pay for itself in 5 years, after which a monthly payment of approximately ?1000 will result from the electricity sold to DESMHE.
