ECONOMY

Lower rate will hamper rooftop photovoltaics, say installers

The practice of installing photovoltaic panels on rooftops will be severely damaged by the government’s decision to reduce the rate owners are paid for the electricity they provide to the national grid.

Representatives of the Association for the Installation of Photovoltaics told Skai radio on Monday that the decision to reduce from 45 cents per kilowatt hour to 12 cents means it will no longer be profitable for homeowners to install the panels.

Total turnover from rooftop solar systems amounts to some 300 million euros per year and was not liable to any taxation but the government said recently that it would begin taxing this income at a rate of 10 to 15 percent.