The fastest return on investment in own power plants is achieved with state incentives

As part of a new round of energy renovation incentives on March 13, the Environmental Protection and Energy Efficiency Fund (FZOEU) announced a Public Call for the energy renovation of family houses. The call also includes incentives for the installation of new photovoltaic power plants for the production of electricity for personal consumption and the installation of renewable energy systems for the production of thermal or thermal and cooling energy such as heat pumps, systems with solar thermal collectors, and wood chip and pellet boilers or pyrolytic wood boilers. Incentives are also available for the construction of one’s own electric vehicle charging station. The Fund has secured a total of 120 million euros for the implementation of all measures, which is the highest amount so far, and for houses damaged in earthquakes, the incentives are more favorable.

Solar panels pay for themselves

The decision to invest in such projects is greatly influenced by the amount that needs to be invested and the payback time. It is therefore important to carefully weigh whether the project is profitable, and the solution to this dilemma in the case of solar panels at ENNA Opskrbi is found in the installation under the ‘turnkey’ system. In this case, ENNA Opskrbi states that they handle all communication and activities with Hrvatska elektroprivreda (HEP) on behalf of the customers, and that the customer pays for the solar power plant only after it is put into operation. By using the ‘turnkey’ system, they note, subsequent hidden costs are avoided since all items are included in the price.

– In addition to FZOEU incentives, there has also been co-financing for the installation of solar power plants for companies from the Modernization Fund and the National Recovery and Resilience Plan (NPOO) in recent years. Although there is currently no available information about tenders and plans for 2024, we advise business entities to keep track of news related to solar co-financing. Due to the excellent geographical position and a large number of sunny hours, the payback time for investments in Croatia is very short. With today’s electricity prices and the use of top-notch equipment that provides the highest efficiency of panels, the payback period in coastal areas is expected to be around six years, and in the continental part for about eight. With the current co-financing from the Fund, the payback period is reduced to three to four years, depending on the location of the property. After the power plant ‘pays for itself’, it will continue to produce free energy for its owners. Considering that the lifespan of solar panels is up to thirty years, it is clear how profitable such an investment is – emphasized ENNA Opskrbi, which has contracted more than two thousand solar power plants in the past two years.

A quarter-century warranty and bi-directional meters

From the preparation and acceptance of the offer to the commissioning of the solar power plant, an average of three to four months passes, but they added that for almost every step, certain documentation is required, which is resolved through the ‘turnkey’ service. ENNA Opskrba warns that many on the market offer this service, and it is necessary to pay attention to whether all administration and paperwork are indeed included in the offer.

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– Seemingly cheaper offers often do not include the replacement of the bi-directional meter, and the mentioned replacement can cost the customer several hundred euros and imply additional documentation collection, which turns the alleged ‘turnkey’ service into waiting at counters and resolving bureaucratic obstacles. When choosing a solar power plant, in addition to the price, attention should be paid to warranties, insurance, and the quality of the equipment being placed on the roof of the house. However, it is already clear at the first problems that the decision to purchase a cheaper power plant is not always the most profitable solution. Severe summer storms have shown us what it means for a customer to choose a solar power plant that comes with insurance. Our solar power plants are insured against damage in the event of earthquakes, severe weather, hail, and similar misfortunes. We also provide a 25-year warranty on certain parts of the power plant, as well as insurance for a duration of 10 years that covers damage caused by severe weather and earthquakes. Given that this is a technology that is constantly being improved, special attention should be paid to whether you are buying a power plant that uses modern microinverters or ordinary inverters, which can be said to be somewhat outdated technology. Although such an offer may seem cheaper at first glance and therefore more attractive to the customer, it may mean lower quality equipment that will affect the lower productivity of the solar power plant over the next 30 years. It will also make it more difficult for the customer to have additional options such as easy upgrades of the power plant when the need and time arise – warned ENNA Opskrbi.

Significant savings in a short time

Ivan Landeka, head of the solutions development group at E.ON Energija, notes a growing interest in effective and sustainable energy solutions for households and companies, which is a good indicator of awareness of the benefits of these solutions. When an E.ON advisor visits a customer, they conduct an on-site inspection and analysis of the property to create an optimal offer, which in E.ON’s case also means ‘turnkey’. This service is favorable and simple for customers because E.ON guides and advises them throughout the entire process and after the power plant is installed.

Landeka advises customers to carefully choose a partner for the installation of energy solutions, engage one that offers a ‘turnkey’ solution, and has many years of experience and credibility in the field. In Landeka’s opinion, advanced and sustainable energy solutions are not just another trendy fad, but solutions that bring significant savings in a short time.

Bills of zero euros

Customers often call, he said, to share that their first monthly electricity bill after installing the solar power plant is close to zero. The return on investment depends on several factors, but given that energy prices in the markets have risen multiple times, Landeka estimates the return on investment for households to be from several to at most ten years.

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Ivan Landeka

—– When it comes to companies, the investment can pay off after three years. The very energy independence is profitable and a reason for investment; savings are just an addition. We discussed this topic with financial experts, who confirmed that it is one of the smarter ways to invest money. Various incentives are available to citizens and companies that facilitate the decision to invest and shorten the payback period. The most generous are the state incentives published by FZOEU, followed by various public calls from local self-government units, where it is important to monitor which of them relate to citizens and which to legal entities. Public calls for participation in co-financing can differ in the highest share that is co-financed, the type of energy efficiency improvement that is subject to co-financing, and other criteria set by the Fund or the local self-government unit. It is important to timely fulfill all the requirements of the public call, as funds are often allocated on a ‘first come, first served’ basis. We are available to our customers for advice on all steps for collecting and submitting documentation for tenders. In addition, we preemptively provide all documentation that is in our domain to customers who decide to apply for incentives – describes Landeka.

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Important profession

Documentation is, he adds, as in any business, the least exciting part of the energy transition for all parties involved. For some solutions, he says it is truly necessary to be patient as the administration and accompanying documentation can stretch for several months.

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Zoran Borovec

—Zoran Borovec, senior sales manager at Energo-S, recommends researching the market, consulting with experts, and then collecting offers from several verified equipment suppliers and contractors before entering an investment. Applications for public calls from the Fund, he states, are structured so that citizens collect the necessary documentation themselves according to the instructions on the Fund’s website and apply, but companies can also (as we have already mentioned) do this for a fee, managing the entire application process. The Fund even accepts that part as a justified expense. The return on investment, according to Borovec, depends on the type of renewable energy source to be installed, installation costs, the lifespan of the installed devices, and maintenance costs, but he certainly believes that investments pay off fastest by using various state subsidies.