2021 PV and Energy Storage Grants
About this good practice
The Regulator for Energy and Water Services launched a set of grants with the aim of promoting renewable energy self-consumption. The scheme is funded through national funds and applies to private individuals (natural persons) for use on their residential properties, and for organisations that are not carrying out an economic activity.
Four grant options are available which have been designed to cater for different scenarios including support for investment PV systems, hybrid/battery inverters and battery storage covering up to 80% of the capital cost. The scheme addresses the following three main challenges:
- Several feed-in tariff contracts are now expiring and the prosumer is paid at a marginal rate for each kWh fed into the main grid, making exporting energy not financially feasible.
- Shifting in energy consumption patterns and increase in residential consumption that were experienced due to the COVID-19 pandemic, resulting in higher electricity bills and increased energy poverty risk.
- A significant increase in the purchase of electric vehicles was observed, thus increasing the energy demand primarily during the night due to charging. Energy generated locally through PVs during the days cannot be used directly unless it is stored.
The scheme, launched in March 2021 by means of Government Notice 302 of 2021, was initially open until the end of 2021, however, given the interest from the public, it has been extended until 31st December 2022.
Resources needed
The scheme is managed by the Regulator for Energy and Water Services and funded through national funds. Details in relation to the amount of funding and resources required to run the practice are not available. MIEMA has been actively promoting the uptake of the new grants across Malta and Gozo.
Evidence of success
The new scheme aimed to address situations observed during the past years in Malta in relation to residential energy demand and costs, expiring feed-in tariffs as well as the shifts in demand observed during the pandemic. The scheme was very well received and was extended for another year. Investment in energy storage technologies allowed building owners to reduce their energy costs and provide for flexibility to the prosumers that can maximise energy-self consumption within their homes.
Potential for learning or transfer
The deployment of de-centralized energy storage systems has several advantages for the energy user but also for the supplier and grid-operator. Such advantages include reduction in energy losses since energy is being produced and used locally instead of being distributed over long distances and the provision services to the main grid by allowing for more flexibility and reducing the stress on the infrastructure.
The promotion of the use of battery energy storage as an add-on to photovoltaic systems through government financial incentives can be replicated in other regions across Europe to help with the introduction of these technologies which are still relatively new on the market. The use of these technologies can also support the setting up of energy communities and help stabilising the energy demand in the different regions which is key to conserving sustainability during and after the pandemic.
Further information
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