Photovoltaics in Greece – Overview and Advantages

Photovoltaics has developed into one of the most attractive and sustainable investments in Greece, and not only for Greek nationals. The market has matured considerably in recent years. This investment opportunity is open to European and international investors wishing to benefit from Greece’s excellent climatic conditions and the continuing expansion of renewable energy in the country.

1.1. Advantages of Investing in the Photovoltaic Sector

Who would not want to secure a long-term source of income or substantial savings on energy costs that:

• is financed by a one-off investment cost at the start of the project and, in return, secures long-term returns or electricity cost savings (often over 20 years),
• involves comparatively low maintenance costs over the entire service life,
• requires neither the operator’s own physical labour nor necessarily the hiring of staff,
• and does not require the constant presence of the entrepreneur on site (thanks to digital remote monitoring).

The solution is photovoltaics in Greece.

1.2. Specific Characteristics of Greece as a Location

It all begins with what Greece is generally first associated with: the sun. The strong solar irradiation in Greece guarantees high energy yields.

Compared with 2013, the market has developed from fixed state feed-in tariffs into a modern, competition-based market. Large projects today are financed through auctions (market premium models) or, increasingly, through private power purchase agreements (PPAs) with industry.

The statutory procedure for obtaining permits in Greece has been heavily digitalised. The old production licence has today often been replaced by the “producer certificate”. One of the most important lessons from the past is securing grid capacity. Current legislation makes the binding grid connection offer from the network operator (DEDDIE or ADMIE) an absolute key requirement. Since the Greek electricity grids are now heavily utilised, this framework strictly examines whether the conditions for a connection at the desired location are met before further building permits are issued. This protects investors from building installations that cannot later be connected to the grid.

The Greek procedure, regulated by national laws and the regulatory authority RAAEY (formerly RAE), aims at transparency. The permitting procedures have been further simplified in recent years through new de-bureaucratisation laws, even though grid availability remains a challenge. Greece has massively increased its expansion targets and aims to generate the majority of its electricity from renewable energy by 2030.

PV Systems in Greece Offer Lucrative Returns Even for Small Investment Amounts

The market is also highly attractive for small investors or homeowners. Strongly simplified procedures apply to small rooftop installations (e.g. 10 kW). Here, the “net billing” procedure (formerly net metering) is used, under which the electricity generated is offset directly against the owner’s own consumption. Through state support programmes, often combined with battery storage, these installations pay for themselves very quickly and minimise the financial risk.

A major advantage for commercial investors (B2B) is the possibility of exemption from VAT on module and material costs (reverse-charge procedure under Article 39a of the Greek VAT Code). The exemption is granted by the competent tax office.

All in all, it is more worthwhile than ever to invest in photovoltaics in Greece. And since the sun in Greece shines almost all the time, everyone can secure their own place in the sun here.

What Has Changed Since 2013 in Greek Law and in the Market (Context for This Update):

Remuneration system: the fixed and very high feed-in tariffs of 2013 no longer exist in that form for new installations. The market has matured. Today, competitive tenders (auctions), feed-in premiums, and increasingly private power purchase agreements (PPAs), dominate.

Grid connection: obtaining a grid connection offer is today the greatest challenge, owing to congested electricity grids (grid congestion).

Authorities: the regulatory authority RAE is now called RAAEY (Regulatory Authority for Waste, Energy and Water).

Small installations: the “net billing” system (formerly net metering) now applies here, often supported by state programmes (e.g. “Photovoltaics on the Roof”), increasingly combined with battery storage.

Capacities: the “900 MW” of 2013 have long since been surpassed. Greece has meanwhile installed more than 13 GW of renewable energy.